Did you or your child spend money opening loot boxes in Counter-Strike, Dota 2, or Team Fortress 2? Valve may have profited from illegal gambling — and children are among those most at risk. Contact us »
WHAT'S THE ISSUE?
Hagens Berman is investigating Valve Corporation for allegedly operating illegal gambling through popular video game franchises Counter-Strike, Dota 2 and Team Fortress 2. Valve sells "loot boxes" that charge users real money for a chance to win randomly selected virtual items. Most users receive items worth only pennies, while a small number win rare items worth hundreds or even thousands of dollars. This model — paying real money for a chance at a valuable prize determined entirely by luck — is the same as a slot machine or lottery.
HOW DO I KNOW IF I’M AFFECTED?
You may be affected if you:
- Purchased keys or loot boxes in Counter-Strike (CS:GO or CS 2), Dota 2 or Team Fortress 2, or
- Are the parent or guardian of a minor who purchased loot boxes in these games.
HOW VALVE'S LOOT BOXES WORK
In Valve's most popular games, users can obtain virtual containers known as "loot boxes." To open a loot box, a user must purchase a key from Valve, typically for $2.49 plus tax. Opening the loot box awards the user a single virtual item selected at random based on odds set by Valve.
The items are purely cosmetic — they have no impact on gameplay. But they can have significant monetary value. Rare items from Counter-Strike alone have sold for thousands of dollars on third-party marketplaces, and the overall market for Counter-Strike skins has been estimated at more than $4 billion.
Nearly every user who opens a loot box receives an item worth far less than the price of the key. For example, a user who pays $2.71 to open a Counter-Strike weapons case will almost certainly receive a skin worth only a few cents — an item that could have been purchased directly for a fraction of the cost. But the remote chance of winning an item worth hundreds or thousands of dollars is what drives users to keep spending, just as with a slot machine or lottery ticket.
WHY IS THIS ILLEGAL GAMBLING?
Washington law broadly prohibits gambling devices. Under the Recovery of Money Lost at Gambling Act (RMLGA), RCW 4.24.070, and the Washington Consumer Protection Act, Valve's loot boxes may qualify as illegal gambling devices because they:
- Award items of varying value in exchange for payment, with outcomes determined entirely by chance
- Do not return the same value for the same consideration each time they are operated
- Function using the same psychological mechanics as slot machines, including spinning-wheel animations, "near miss" visuals, and variable ratio reinforcement schedules designed to encourage repeat spending
Valve has built and maintained a marketplace ecosystem — both through its own Steam Community Market and through third-party sites it knowingly tolerates — that ensures its virtual items have real monetary value.
The New York Attorney General has filed suit against Valve, alleging that its loot boxes violate New York's constitutional prohibition on gambling and its criminal laws against promoting gambling. According to the New York Attorney General's complaint, Valve's internal communications reveal that the company was well aware these items were being bought and sold for real money, even as it publicly claimed such activity violated its terms of service.
GAMBLING RISKS TO CHILDREN
Valve's loot boxes are especially concerning because they are widely used by children and adolescents. Research has established that:
- There is a significant link between loot box spending and problem gambling in adolescents — stronger than the relationship observed in adults.
- Children exposed to gambling activities are substantially more likely to develop gambling addictions later in life.
- Loot boxes use the same psychological mechanisms as casino games to encourage repeated spending.
Valve does not verify the age of users who create Steam accounts or purchase loot box keys. The only barrier is a checkbox. Teenage boys are a core audience for games like Counter-Strike, and many prominent esports players began playing these games well before age 13.
HOW CAN A CLASS-ACTION LAWSUIT HELP?
A class-action lawsuit allows individual consumers to collectively bring claims against companies like Valve that would otherwise face no accountability. Washington's RMLGA provides a private right of action that allows consumers to recover money lost through illegal gambling. A successful class action could require Valve to pay restitution, cease its loot box practices and implement meaningful age verification and consumer protections.
TOP CONSUMER RIGHTS LAW FIRM
Hagens Berman is one of the most successful consumer litigation law firms in the U.S. and has achieved settlements valued at more than $345 billion for class members in lawsuits against Big Tech companies, device manufacturers and others. The firm is currently litigating an antitrust class action against Valve related to its Steam platform practices. Hagens Berman has deep experience holding technology companies accountable for unlawful conduct that harms consumers, and your claims will be handled by attorneys experienced in complex litigation.
NO COST TO YOU
In no case will any class member ever be asked to pay any out-of-pocket sum. In the event Hagens Berman or any other firm obtains a settlement that provides benefits to class members, the court will decide a reasonable fee to be awarded to the legal team for the class.
