HomeTechnologyHow strong is New York's "illegal gambling" case against Valve's loot boxes?

How strong is New York's "illegal gambling" case against Valve's loot boxes?

TechnologyFebruary 27, 2026
2 min read
How strong is New York's "illegal gambling" case against Valve's loot boxes?
Lawyers tell Ars the state has a tough road ahead, even as Valve is uniquely vulnerable.
Reading Settings

For years now, Valve fans have been making jokes about the company's slow transition from game maker to glorified digital hat and knife paint marketplace. This week, though, a lawsuit brought by the state of New York argues that Valve's in-game loot box sales amount to an illegal gambling outfit worth tens of billions of dollars.

Lawyers who have looked into the particulars of the case tell Ars that the state faces an uphill battle in convincing courts that this portion of Valve's business legally constitutes gambling. That said, there are a few elements of the case that might make Valve legally vulnerable to the state's arguments.

What is gambling, anyway?

For a game to legally be counted as "gambling" in most jurisdictions, it has to pass a three-part test: a player has to pay money (1) for an outcome that's materially determined by chance (2) in the hopes of receiving something of value (3). While buying a key to a loot box in a Valve game easily passes those first two tests, New York's legal case will likely hinge on whether the random cosmetic items players get from those loot boxes constitute "something of value" for statutory purposes.

Read full article

Comments

Source: Ars Technica

Share this article

Related Articles

Asus ROG Swift RGB Stripe OLED Review: Clarity King
Aug 2311 hours ago

Asus ROG Swift RGB Stripe OLED Review: Clarity King

The Asus PG27UCWM brings a new sub-pixel layout to the world of OLED gaming monitors, and in my testing, I appreciated the improvements it brings to the table.

6a85ce6f524fc7a4422304ab9 min read
Read More
Support networks aim to help kids through the polycrisis
Aug 2323 hours ago

Support networks aim to help kids through the polycrisis

Sometime in the late 2000s, Pim Sullivan-Tailyour was sitting in the back of a car, headed toward her great-grandmother’s tiny town in the south of Thailand. She watched big mountains pass by out the

technologyreview.com18 min read
Read More