New York Attorney General Letitia James has accused Valve of promoting illegal gambling through its video games in a lawsuit filed by her office. According to the AG’s announcement, her office conducted an investigation and had concluded that Valve enabled gambling by enticing users to pay for a chance at rare items from loot boxes in Counter-Strike 2, Team Fortress 2 and Dota 2. In the lawsuit, the New York AG stressed that Valve’s loot boxes are “particularly pernicious,” because the games are popular among children and teenagers.
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Lawyers who have looked into the particulars of the case tell Ars that the state faces an uphill battle in convincing courts that this portion of Valve's business legally constitutes gambling. That said, there are a few elements of the case that might make Valve legally vulnerable to the state's arguments.