NATIONAL NEWS

New York sues Counter-Strike game developer saying ‘loot boxes’ promote gambling

Feb 25, 2026, 3:38 PM

FILE - New York Attorney General Letitia James attends a news conference Dec. 15, 2025, in New York...

FILE - New York Attorney General Letitia James attends a news conference Dec. 15, 2025, in New York. (AP Photo/Yuki Iwamura, File)
Credit: ASSOCIATED PRESS

(AP Photo/Yuki Iwamura, File)

NEW YORK (AP) — New York’s attorney general has sued video game developer Valve, claiming the “loot boxes” found in Counter-Strike and other popular video game franchises illegally promote gambling.

State Attorney General Letitia James said in a lawsuit filed Wednesday in New York state court that games such as Counter-Strike 2, Team Fortress 2 and Dota 2 illegally charge users for the chance to win rare items held in the virtual containers.

In Counter-Strike, the process even resembles a slot machine, with an animated spinning wheel that eventually rests on a selected item, James’ office said.

“Valve has made billions of dollars by letting children and adults alike illegally gamble for the chance to win valuable virtual prizes,” James said in a statement. “These features are addictive, harmful, and illegal.”

Messages seeking comment were left Wednesday for the Bellevue, Washington-based company.

“Loot box” items are generally cosmetic, such as a hat for a player’s character or an artistic skin for weapons. They usually don’t serve any vital function in the games, but James’ office said the items can still be sold online for significant sums.

Some of the rarest items can go for thousands of dollars online, according to James’ office. One item, an AK-47 Counter-Strike skin, recently sold for more than $1 million.

James’ suit says Valve is violating New York’s constitution by promoting gambling in its games. It wants the company to stop the practice and pay restitution and damages to users, as well as a fine worth three times the amount of its profits from the features.

The attorney general argues that research has found children introduced to gambling are four times more likely to develop a gambling problem later in life than those who are not.

“Loot boxes, like other forms of gambling, can lead to addiction and result in real harm,” the suit reads. “But Valve’s loot boxes are particularly pernicious because they are popular among children and adolescents, who are lured into opening loot boxes by the prospect of winning expensive virtual items that convey status in the gaming world.”

James’ office said demand for “loot box” prizes has drawn interest not just from online speculators and investors that have helped values soar, but also thieves targeting third-party, online marketplaces where the virtual items can be sold for cash.

Valve facilitates those third-party marketplaces, as well as operating its own, the Steam Community Market, where players can sell their items and use the proceeds to buy other video games, gaming hardware or other virtual items.

National News

City Councillor Renaldo Agostino looks at the Detroit skyline across the Detroit River Monday, Aug....

Associated Press

US tourism groups want to win Canadian visitors back. A testy trade war isn’t helping

LAS VEGAS (AP) — Appeals from American tourism organizations seemed to be everywhere Josh Loewen looked over the last year. Billboards and banners proclaimed a state or city’s love for Canada. Online and social media ads offered special deals for travelers from north of the border. As a Vancouver resident and marketing executive himself, Loewen […]

8 minutes ago

In this photo taken with a smartphone, Brent Williams, who suffers from the tick bite allergy known...

Associated Press

A Kentucky man with a meat allergy was craving a burger. So he got into ostrich farming

DANVILLE, Ky. (AP) — When a friend approached Brent Williams four years ago with a business proposition to start an ostrich farm, he was more than intrigued — he had a personal motivation as someone who developed a life-threatening allergy to red meat, triggered by tick bites. The problem, known as alpha-gal syndrome, was first […]

24 minutes ago

President Donald Trump gestures in the Oval Office of the White House, Thursday, Aug. 27, 2026, in ...

Associated Press

A whiplash election year enters its final stretch as Trump holds wild cards

WASHINGTON (AP) — In the earliest days of this election cycle, the U.S. wasn’t at war with Iran. The East Wing of the White House was still standing and the Kennedy Center wasn’t threatened with demolition. Artificial intelligence data centers weren’t bipartisan shorthand for the tech sector’s excess. Democratic socialists were largely confined to the […]

28 minutes ago

California Gov. Gavin Newsom speaks to supporters during a campaign event at the Brookland-Lakeview...

Associated Press

California made Gavin Newsom famous. Will it drag down his 2028 presidential ambitions?

SUMMERVILLE, S.C. (AP) — Gavin Newsom’s secret is no secret here in South Carolina. They were selling “Gavin 2028” buttons outside his events this past week as he trekked across the state that will hold Democrats’ first presidential primary. His allies, the state party chair, college presidents and pro-Newsom activists all openly hinted at his […]

8 hours ago

FILE - People embrace near the scene of a shooting outside the Islamic Center in San Diego, May 18,...

Associated Press

Parents of San Diego mosque gunman say a mental health facility failed to heed FBI warning

LOS ANGELES (AP) — Just days before two teenagers carried out a mass shooting at a San Diego mosque, federal law enforcement officials warned the parents of one of the shooters that their son was making concerning comments about school shootings on the dark web, according to new details included in a recently filed lawsuit. […]

12 hours ago

Venus Williams, left, and Serena Williams, of the United States, look on as they play against Hao-C...

Associated Press

Venus and Serena Williams put on a show in thrilling U.S. Open return, in photos

NEW YORK (AP) — The Williams sisters returned to the U.S. Open doubles court, thrilling a packed Arthur Ashe Stadium crowd with a three-set battle that came down to the final points. Venus and Serena Williams fell to Hao-Ching Chan and Maya Joint in a dramatic tiebreaker.

16 hours ago

New York sues Counter-Strike game developer saying ‘loot boxes’ promote gambling