Valve Corporation is facing legal challenges on multiple fronts. The company is currently being sued for alleged monopolistic practices in both the United States and the United Kingdom, and now Modern York’s Attorney General is taking action regarding the promotion of gambling.
Through Steam, Valve allows games to offer “loot boxes” – virtual containers that provide random in-game items, such as CS2 weapon skins. These skins can hold real-world value, and third-party sites facilitate trading them in a manner resembling gambling.
New York Attorney General Letitia James has taken issue with this practice, initiating legal proceedings against Valve for “promoting illegal gambling through video games.”
According to an official statement, illegal gambling can lead to serious addiction issues, particularly among young people. The Attorney General’s office alleges that Valve has profited from allowing children and adults to gamble on valuable virtual items, a practice they claim is both harmful and unlawful. They are committed to stopping Valve and protecting New Yorkers. The office reports that Valve was operating a $4.3 billion business as of March 2025.
Beyond the purchase of virtual items and hardware on Steam, funds collected from these items can be used in other ways. The Attorney General is also concerned that Valve accounts can be linked to external marketplaces, where items can then be converted directly into real money. Their investigation suggests that Valve facilitates this process through the use of APIs, indicating they are not actively preventing it. The office also notes that there are thousands of support requests related to Steam account hacking, highlighting the value of these accounts as targets.
If the court finds Valve has violated gambling laws, it could fundamentally change how Steam operates. The outcome of this case could set a precedent for how gaming platforms handle virtual economies and the potential for gambling-like mechanics within games.
