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The state of New York is suing the Valve Corporation over the appearance of loot boxes in many of its most popular franchises, including Counter-Strike and Dota 2, because the state alleges the mechanic is indistinguishable from illegal gambling.
In a publicly available summons filed on February 25, New York Attorney General Letitia James, on behalf of the People of the State of New York, argues that Valve has only ensured its free-to-play franchises remain lucrative "by pioneering an alternative model for monetizing its games: gambling."
"The market for virtual items for the Counter-Strike franchise alone has been estimated to be in the billions of dollars, an unparalleled sum in the video game industry," says the summons. And, sounding not dissimilar to Valve critics who can't stand the publisher's reliance on microtransactions, the summons says, "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."
In fact, the summons contains an entire section dedicated to how "Valve's Loot Boxes Pose the Same Dangers as Casino Gambling, Especially for Children." Seeing as how the publisher "has made tens of millions of dollars selling keys to thousands of New York residents, who have used them to open Valve loot boxes in the hopes of winning valuable virtual items" – that makes this a hometown problem.
So New York demands Valve make amends in several ways, including making "full restitution to consumers and pay damages caused, directly or indirectly, by the illegal acts complained of herein." That's in addition to a proposed "fine of three times the amount of its gain from the illegal practices alleged." We'll see which house wins.
