The chances of the state of New York defeating Gabe Newell and Valve in court over loot boxes are ridiculously small

New York State's Chances of Beating Gabe and Valve in Court Over Loot Boxes Are Laughably Small

New York has filed suit against Valve, accusing the company of enabling illegal gambling via loot boxes in games, including Counter-Strike 2. The state is asking for restitution for affected players — basically a demand for refunds.

Experts quoted by ArsTechnica say the economic worth of the prizes matters a great deal. Attorney Jonathan Loiterman points out that, unlike a casino bet, someone who buys a loot box always walks away with an item; that distinction makes the transaction feel more like buying collectible cards than placing a pure wager (i.e., you don’t leave empty-handed).

Another sore point is the resale ecosystem on Steam. Prosecutors argue resale equals cashing out; Valve will counter that users can’t withdraw real cash from Steam directly. How the court sees Valve’s efforts to police or deter gray-market activity — e.g., whether the company tried to shut down third-party schemes — could be decisive.

This litigation is only one skirmish in a broader, international set of cases. Judgments have tended to favor game makers, though not invariably, so New York faces an uphill climb based on precedent and the legal nuances at play.