New York

New York Wants a Cut of Counter-Strike's Loot Boxes

Attorney General Letitia James says they're a form of illegal gambling. But the state seems more interested in untaxed revenue than consumer protection.

Patterson Beaman | 4.7.2026 1:21 PM

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New York Attorney General Letitia James has discovered a new threat to public safety: a $2.50 video game purchase. She recently sued Valve Corporation, the company behind Counter-Strike 2 and the Steam gaming platform, over a supposed illegal gambling feature. The lawsuit demands refunds for affected New Yorkers and a substantial fine paid to the state.

What exactly is this case about, protecting consumers or making sure Albany gets a cut?

Filed in February 2026, James' complaint targets Valve's "loot boxes," where players spend $2.49 on a digital key, open a virtual case, and receive a randomly assigned, purely cosmetic "skin" for weapons like the AK-47. Most players get something common, worth pennies. But some receive rare virtual items worth hundreds or even thousands of dollars. A single Counter-Strike skin reportedly sold for........

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