New York Attorney General Sues Valve Over Loot Boxes in CS2, DOTA 2, and TF2

New York State Attorney General Letitia James filed a lawsuit against Valve on February 25, 2026, accusing the company of illegally promoting gambling among children and teenagers through paid keys that can be used to open cosmetic items in popular games like Counter-Strike 2, DOTA 2, or Team Fortress 2.

“Valve, a video game developer, has made billions of dollars by letting children and adults illegally gamble for the chance to win valuable virtual prizes,” James said in an X post. “These features are addictive and harmful.”

The lawsuit alleges that Valve’s case-opening mechanics, which require players to purchase keys for a chance to obtain rare in-game cosmetics, function as unregulated gambling systems, given the real-world monetary value attached to certain high-tier skins on third-party markets. By allowing minors to participate in these systems, the complaint argues, the company has blurred the line between entertainment and gambling while reaping billions in revenue.

The filing comes only a few days after Valve secured a legal victory against patent troll Leigh Rothschild, highlighting the growing legal pressure around one of the gaming industry’s biggest names.

In the lawsuit, James demands to “permanently stop Valve from continuing to promote illegal gambling in its games” as well as to “pay disgorgement and fines.”

Community Reaction

The Letitia James lawsuit against Valve has drawn mixed reactions from the gaming community.

Across various social media forums, some players argued across social media forums that loot boxes have long resembled gambling and that stronger regulation is overdue. However, many gamers also came to Valve’s defense, maintaining that the case-opening system is entirely optional, with disclosed odds and is only attached to cosmetic rewards rather than gameplay advantages.

Others pointed out that skin prices in CS2 and other Valve titles are largely driven by player demand and are not direct cash payouts from the company itself.

Some also noted that CS2 carries a Mature rating and that Steam includes parental control tools, arguing that minors accessing these systems ultimately reflects parental supervision decisions rather than corporate intent.

Valve has yet to issue a public statement regarding this lawsuit at the time of writing.