New York Sues Valve, Alleging Counter-Strike 'Loot Boxes' Illegally Promote Gambling

New York Attorney General Letitia James has filed a lawsuit against video game developer Valve, alleging that the 'loot boxes' found in Counter-Strike and other popular franchises illegally promote gambling. The suit claims that Valve's system — in which players pay real money for randomized in-game items whose value fluctuates on a secondary market — functions as an unregulated gambling operation that targets minors. The case could set a major legal precedent for the $200 billion global gaming industry, where loot box mechanics generate billions in revenue and have drawn increasing scrutiny from regulators worldwide.