Lawsuit Filed Against Washington State-Based Game Developer Valve Over Unlawful Gambling Through its Loot Box System

Submitted by Gilbert Horowitz on

Written by :

Gilbert Horowitz

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Counterstrike 2

A class action lawsuit was filed earlier this week against Washington State-based game developer Valve, claiming it allows gambling via its loot box system. 

The suit was filed Monday March 9, 2026, in the U.S. District Court for the Western District of Washington, and accuses the company of knowingly operating unlawful gambling through its loot box system designed to mimic slot machines.  The contents within these boxes have real-world monetary value, and they “employ the same psychological mechanisms” that casinos use, according to the suit filed by Washington law firm Hagens Berman.

“We believe Valve deliberately engineered its gambling platform and profited enormously from it,” said Steve Berman, Hagens Berman’s founder and managing partner. “Consumers played these games for entertainment, unaware that Valve had allegedly already stacked the odds against them. We intend to hold Valve accountable and put money back in the pockets of consumers.”

Valve distributes loot boxes to players for free through its games Counter-Strike (including Counter-Strike 2 and Counter-Strike: Global Offensive), Dota 2 and Team Fortress 2, which attract millions of players every month. Loot boxes are locked virtual containers that, when unlocked, give users a chance to win a valuable cosmetic prize, such as a weapon skin or character accessory.

To unlock a loot box, players must purchase a key from Valve for approximately $2.50. Players have no control over the prize inside a loot box. The prize and odds of winning a high-value prize is determined entirely by Valve’s software. The complaint alleges the prize is typically worth only pennies. But on rare occasions, it can be worth hundreds or thousands of dollars.

This is the second lawsuit in recent weeks against the company claiming they promote gambling.

Last month, New York Attorney General Letitia James sued Valve accusing the company offering 'quintessential gambling'.  

James added that children can become addicted by the games through "loot boxes".  

James also claims that these games are violating the state's constitution and penal law, with valuable items often hard to win and many items worth pennies.  She made reference to the same slot machine mentioned in this week's class action filing in Washington. 

"Valve’s loot boxes are particularly pernicious because they are popular among children and adolescents," according to the complaint filed by James.

Children introduced to gambling by age 12 are four times more likely to become problem gamblers as adults, the complaint added.

The suit filed in Washington also references easy access by and the appeal among those under age. 

"Valve knew children were on the other end of these transactions," Berman said. "Rather than protect young players through age verification or a parental consent mechanism, we believe they rigged the game to extract more money from them."

The New York AG is seeking restitution for players, plus a fine of three times Valve's alleged illegal gains.

The plaintiffs in the Washington suit are gamers who bought PC games through the Steam store.  Plaintiffs in this matter are also seeking restitution as well as treble damages under antitrust law. 

Valve has not yet publicly commented on either lawsuit.

  • Gilbert Horowitz, Gambling911.com 

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