New York’s attorney general has filed a lawsuit against Valve, accusing the game developer of promoting illegal gambling among young people through its use of in-game “loot boxes.” Valve makes wildly popular games such as Counter-Strike 2, Team Fortress 2 and Dota 2.
Valve’s loot boxes amount to “quintessential gambling,” which is prohibited under New York’s constitution and penal law, Attorney General Letitia James said in the complaint (PDF) filed Wednesday in a Manhattan court. James said the issue is compounded because of the games’ appeal to teenagers and children.
“Valve has made billions of dollars by letting children and adults alike illegally gamble for the chance to win valuable virtual prizes,” James said in a statement. “Illegal gambling can be harmful and lead to serious addiction problems, especially for our young people.”
Loot boxes — essentially randomized treasure chests containing in-game items — let players pay real money for the chance to win rare virtual items used to decorate weapons or characters in an effort to build status among other players.
Valve has made millions of dollars selling “keys” to open loot boxes, which James’ office says contain a virtual item “worth only pennies — far less than what they spent to open the loot box.” Valve sets the odds of winning particularly rare virtual items, which can then be resold on Valve’s Steam Community Market, netting the game developer more revenue from their sale, according to the complaint.
“Valve’s loot boxes are particularly pernicious because they are popular among children and adolescents, who are lured into opening loot boxes by the prospect of winning expensive virtual items that convey status in the gaming world,” according to the complaint.
One game features a mechanism that resembles a slot machine, complete with a wheel that spins past potential winning items, conveying the illusion of a near-miss before stopping on one.
The complaint also cited research by the Massachusetts Department of Public Health that found that children who are introduced to gambling by the age of 12 are four times more likely to become problem gamblers later in life.
Valve representatives didn’t immediately respond to a request for comment.
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