The State of New York’s attorney general, Letitia James, has officially taken gaming giant, Valve, to court in a state court in Manhattan, alleging that the combination of games like Counter-Strike, Team Fortress, and Dota, wherein players can earn and use real money to buy loot boxes, and Steam’s Community Market, where rare skins and items can be sold, often for exorbitant prices, amount to “quintessential gambling.” There are reports of Counter-Strike: Global Offensive skins selling for as much as $2.5 million, with the game touted as having the biggest in-game economy of any video game. Valve previously adjusted the way it presented loot boxes and their rewards to players, seemingly specifically to avoid EU gambling regulations.
The lawsuit, spotted by Reuters, alleges that “Valve’s loot boxes are particularly pernicious because they are popular among children and adolescents,” going on to state that these mechanics put children at risk of becoming addicted, with the complaint adding that children are four times more at risk of becoming addicted to gambling in adulthood if they are exposed to gambling before the age of 12. The lawsuit seeks restitution for players and a fine of three times Valve’s earnings from any activities deemed to be illegal. Loot boxes are largely looked down on by gamers and lawmakers alike, because players are encouraged to spend money on them, and they provide no guarantee of any return or specific value. If James succeeds against Valve in the lawsuit, it could set a precedent that may result in sweeping changes across both Steam and the gaming industry at large.
