Valve has commented on the lawsuit filed by the New York Attorney General (NYAG). The state’s claim is that loot boxes in games such as CS2 are allegedly a form of gambling.
“We do not believe this is the case, and we were disappointed by the NYAG’s statement after we made efforts to explain the nature of our virtual items and loot boxes since their first inquiry to us in early 2023,” Valve said in a statement. The company also noted that it already actively fights third-party gambling sites and blocks accounts involved in fraudulent activities.
The New York prosecutor demands that virtual items from cases become non-transferable and non-tradable. According to the NYAG, the ability to sell an item gives it value, which turns opening a case into a “bet.” Valve firmly said no:
“The ability to transfer items is a user right that we believe should not be taken away, and we refuse to do so.”
To prevent users from bypassing restrictions via VPN, the prosecutor also demanded that Valve implement “intrusive tracking technologies.” This would require the company to collect excessive location data on every user worldwide to ensure they are not secretly accessing the service from New York.
Another demand is stricter age verification using additional personal documents. Valve considers this a violation of privacy, noting that most payment methods already include built-in verification, and the company does not want to collect unnecessary personal data from players.
Valve stated that it would have been cheaper and easier to sign a settlement agreement and pay a fine. However, the conditions proposed by the prosecutor would create a dangerous precedent. According to the company, this would not only harm the Steam economy but also force other developers to introduce similar restrictions.
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