New York attorney general Letitia James announced the state is suing video game publisher Valve over its use of loot box systems in games like Counter-Strike 2, Dota 2, and Team Fortress 2.
“This loot box model that Valve has developed — charging an individual for a chance to win something of value based on luck alone — is quintessential gambling, prohibited under New York’s Constitution and Penal Law,” reads the lawsuit.
The lawsuit also states Valve “made millions of dollars more in commissions from New Yorkers who sold virtual items obtained from loot boxes.” For New York, this is particularly concerning, since it claims loot boxes have also become popular with children and adolescents.
Then there’s the problem of what users get in return.
The loot box process is pretty straightforward. Users purchase keys, with each one selling for $2.49 plus tax. They then use these keys to open loot boxes and receive randomly-selected virtual items.
If they want, users can then turn around and sell these items on the Valve-run Steam Community Market and on third-party marketplaces.
The sticking point is with the per-key price. According to the lawsuit, users will mostly receive items that are “worth less than what the user spent on the key.” The lawsuit also said the experience of opening a loot box in Counter-Strike 2 resembles that of a slot machine.
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