Valve has filed a motion to dismiss a lawsuit brought by New York Attorney General Letitia James, who seeks to ban case openings in Counter-Strike under New York state law.
In a 42-page filing, Valve argued that punishing the company over so-called “loot boxes” or “cases” — where players can pay around $2.50 for an in-game item of varying rarity — could create a dangerous legal precedent. According to the developer, if New York classifies the mechanic as illegal gambling, the same logic could also apply to baseball cards, Happy Meal toys, Labubus, surprise comics, and many other products.
“Can parents buy packs of baseball cards for their children? Can families visit Chuck E. Cheese to play games and exchange winning tickets for prizes? Can a child reach into a cereal box and pull out a surprise toy? All of these activities and many others could result in criminal liability under the New York Attorney General’s interpretation of gambling,” Valve stated.
In February 2026, New York Attorney General Letitia James filed a lawsuit against Valve, accusing the company of “illegally promoting gambling among children and teenagers” through loot box mechanics in popular video games.
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