Valve has been accused of promoting gambling. A lawsuit has been filed by the Attorney General of New York.
The company found itself under fire for supporting loot boxes and the possibility of selling virtual items.
Letitia James (Photo source: Brendan McDermid | Reuters)
The essence of the claims is that Valve first charges a fee to open loot boxes, which the prosecutor's office considered a gambling mechanism. Then it allows the skins obtained from the containers to be sold for real money either on Steam or on third-party marketplaces.
Thus, according to the lawsuit, the company involves users—including children—in gambling practices, earning billions of dollars from it. Moreover, the prosecutor's office believes the loot box function itself violates New York State's gambling laws.
The attorney general demands that a permanent ban be placed on Valve from promoting gambling features in its games, that all "illegally earned funds" be returned, and that Valve pays fines to the state for violating the law.
"Illegal gambling can cause harm and lead to serious addiction problems, especially among youth," stated Attorney General Letitia James. "Valve has earned billions of dollars by allowing children and adults to illegally gamble for a chance to win valuable virtual prizes. These features are addictive, harmful, and illegal, and my office is filing a lawsuit to stop Valve's illegal activities and protect New York residents."