New York sues ‘Counter-Strike’ game developer saying ‘loot boxes’ promote gambling
NEW YORK– New York’s attorney general has sued video game developer Valve, claiming that “loot boxes” found in Counter-Strike and other popular video game franchises illegally promote gambling.
State Attorney General Letitia James said in a complaint 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 wheel that ultimately lands on a selected item, James’ office said.
“Valve has made billions of dollars by allowing children and adults to play illegally 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 with the Bellevue, Washington-based company.
Loot box items are usually cosmetic, such as a hat for a player character or an artistic skin for weapons. They generally don’t serve any vital function in games, but James’ office said the items can still be sold online for significant sums.
Some of the rarest items can cost thousands of dollars online, according to James’ office. One item, an AK-47 Counter-Strike skin, recently sold for over $1 million.
James’ lawsuit claims Valve is violating New York’s constitution by promoting gambling in its games. He wants the company to end this practice and pay restitution and damages to users, as well as a fine representing three times the amount of its profits from the features.
The attorney general says research has shown that children who are 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 cause real harm,” the suit states. “But Valve’s loot boxes are particularly pernicious because they are popular with children and teenagers, who are lured to opening loot boxes by the prospect of winning expensive virtual items that confer status in the gaming world.”
James’ office said the demand for “loot box” prices has attracted interest not only from online speculators and investors who have helped drive up values, but also from thieves targeting third-party online marketplaces where virtual items can be sold for cash.
Valve facilitates these third-party marketplaces and operates its own marketplace, the Steam Community Market, where players can sell their items and use the profits to purchase other video games, gaming hardware, or other virtual items.
