The New York Attorney General has indicted Valve for promoting illegal gambling through video games, including CS2 and Dota 2.

New York Attorney General Letitia James formally indicted Valve Corp. on Wednesday, accusing it of "illegally promoting gambling activities through video games popular with children and teenagers." The indictment alleges that the games involved include Valve's CS2, Dota 2, and Team Fortress 2.

Valve is a globally renowned video game developer, publisher, and distributor, and also operates Steam, the world's largest comprehensive digital distribution platform for PCs. An investigation by the New York State Attorney General's Office (OAG) found that Valve encouraged illegal gambling by enticing users to pay for rare virtual items through "loot boxes" in its games.

In Valve's games, the "loot boxes" operate much like slot machines. Although the virtual items players obtain don't have any actual in-game functionality (mostly character headwear or weapon skins), Valve deliberately increases the difficulty of obtaining these items, thereby boosting their market value. Even more seriously, Valve also provides channels for users to trade virtual items for cash through official and third-party marketplaces, forming a complete closed loop of illegal gambling.

In a lawsuit filed Wednesday, Attorney General James seeks to permanently ban Valve from promoting illegal gambling in its games and demands the return of illicit profits and fines. She stated unequivocally, “Illegal gambling is extremely harmful and can lead to serious addiction problems, especially among young people. Valve has profited billions of dollars by allowing children and adults to gamble illegally to win high-value virtual prizes. These features are addictive, harmful, and illegal, and my office is filing this lawsuit to stop Valve’s illegal activities and protect the rights of New York City residents.”

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