AG James sues Valve for "Promoting illegal gambling through video games"

New York Attorney General sues Valve

"Harmful to children" says AG James

Through a press release, the state of New York has announced that Attorney General Letita James is suing Valve for promoting "gambling" through video games. While some supported AG James's anti-gambling stance, many reddit and X users questioned the selective outrage pointing out the massive ongoing scandal in the United States.

The Lawsuit points out several features within Valve's games and alleges them to be harmful citing that illegal gambling could lead to addiction problems especially for young people. The Counter-Strike skins market came under fire in the lawsuit for its $4.3 billion market cap as of March 2025. The press release even attached a picture of the #661 pattern AK Case Hardened claiming that the skin was sold for over a million dollars in June 2024.

Valve has faced various regulatory issues surrounding the same over the years. One such lawsuit restricted Counter-Strike case openings in Netherlands after the Dutch Gaming Authorities deemed loot boxes as gambling. Valve seems to be taking small steps to find a workaround with the introduction of the Genesis Uplink Terminal which gives players an option to pay for the skin the "arms dealer" offers instead of paying to open the case with hopes of getting a valuable skin.

AG James also criticized Valve for allegedly facilitating third-party websites which allowed players to exchange their in-game items for real world money and also took a dig at scams that took place within the platform where users would have their inventories or accounts stolen through careful social engineering scams. The Attorney General of New York then flipped back the calendar by a decade, alleging that Counter-Strike was a catalyst in the widespread gun violence that exists in the country.

In the lawsuit filed today, Attorney General James seeks to permanently stop Valve from promoting gambling features in its games, disgorge all ill-gotten gains, and pay fines for violating New York’s laws.
The Attorney General's Office, New York

Read the complete press release here

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