According to the state attorney general, loot boxes should be treated as quintessential gambling, meaning Valve may have violated state gambling laws through systems offered in games like Counter-Strike.
Valve is facing another lawsuit, but this time it is not about the 30% commission deducted from sales on Steam. The case comes from New York State: Attorney General Letitia James is suing Valve, arguing the company violated state gambling laws by offering loot boxes in games such as Counter-Strike. As reported by Reuters, James calls Valve‘s loot boxes quintessential gambling and accuses Gabe Newell and his colleagues of pushing children toward gambling addiction.
“Valve’s loot boxes are particularly pernicious because they are popular among children and adolescents. Research has shown that children introduced to gambling are at a significantly higher risk of developing addictions later in life. Valve has made billions of dollars by allowing children and adults to illegally gamble for valuable virtual prizes. These features are addictive, harmful, and illegal. My office is suing to stop Valve’s illegal conduct and protect New Yorkers,” the complaint reads.
If successful, the lawsuit would permanently prevent Valve from promoting illegal gambling in its games and would require the company to pay damages and fines. This is not the first legal action aimed at loot boxes and their similarities to gambling: earlier this month, an Austrian court ruled that EA Sports FC and FC Ultimate Team loot boxes do not constitute gambling. Meanwhile, in Brazil, the president signed a law banning all loot boxes for users under 18, which will take effect in March.
This lawsuit will take a long time to resolve, but it will be worth watching whether it drives change around loot boxes across the broader industry, not only in games such as Counter-Strike and EA Sports FC. It probably will not mean the end of loot boxes, but it could significantly reshape how they operate – ideally in a better direction.
Source: WCCFTech, New York, Reuters
