New York is taking legal action against Valve, alleging that the company’s loot box system constitutes “illegal gambling,” as articulated by Attorney General Letitia James.

Valve has responded with a detailed public statement, expressing disappointment over the lawsuit and asserting that its “mystery boxes” do not breach the state’s gambling statutes. According to Valve, discussions with the New York Attorney General regarding its virtual items began in early 2023.

In response, the company pointed out that mystery boxes are a common practice not only in video games but also in the physical world, where activities like opening baseball card packs and trading items have been cherished by generations. Valve further stated, “On the physical side, popular products employed similarly include baseball cards, Pokémon cards, Magic:

The Gathering, and more. In gaming, digital packs akin to our boxes have been around since 2004 and are widely prevalent. Importantly, players are not required to open mystery boxes to enjoy Valve games; in fact, many players engage with the games without ever opening a box, as the items they contain are purely cosmetic and do not impact gameplay.”

Valve says that during the New York attorney general’s investigation, it highlighted its efforts “to shut down accounts found to be using Valve game items on gambling sites in violation of the Steam Subscriber Agreement”, as well as its “efforts to combat fraud and theft of users’ items”, and what it calls its “extraordinary measures” to stop gambling sites from taking advantage of Steam accounts and Valve game items.