Valve Corporation has officially responded to a lawsuit filed by Letitia James, the Attorney General of New York, which accuses the company of promoting illegal gambling through certain features in its video games.
The lawsuit, filed in February 2026, claims that mystery boxes such as crates, cases, and chests in some Valve games violate New York gambling laws and affect children and teenagers who play the games.
Valve has now publicly responded, disputing the allegations and arguing that the mechanics in question do not violate New York gambling laws. In its statement, Valve said it had been communicating with the New York Attorney General’s office since early 2023, attempting to explain how virtual items and mystery boxes work within its games.
The company argued that randomised packs are not unique to video games and have existed for decades in physical products. Valve compared its digital boxes to collectible products such as Pokémon trading cards and Magic: The Gathering cards, where buyers receive random items and often trade or sell them afterward.
According to the company, digital mystery boxes have been widely used in games since at least 2004 and are not required to play its titles. They explained that the items obtained from these boxes are purely cosmetic and do not give players gameplay advantages.
Valve also pushed back against claims that it facilitates gambling through its platform. The company said it has taken extensive steps to prevent third-party gambling websites from using in-game items. The company added that gambling-related businesses are prohibited from sponsoring tournaments for Valve games, a rule that was announced back in December 2025.
Valve said it has concerns about some of the changes the Attorney General’s office wants the company to make. One issue is the transfer of digital items between users. The NYAG believes mystery box items and their contents should not be transferable. However, Valve argued that allowing players to trade or sell items through Steam Trading or the Community Market benefits users, similar to how people trade or sell physical collectibles.
Beyond the gambling allegations, Valve also addressed comments made by the Attorney General linking video games to real-world violence, calling those remarks a distraction from the case. The company said many studies have found no link between media and real-world violence and have highlighted positive effects of games.
Valve ultimately acknowledged that New York has the authority to pass laws regulating mystery boxes if the state legislature chooses to do so. However, the company pointed out that no such law currently exists.
“Ultimately, a court will decide whose position is correct,” Valve said, adding that it chose not to settle because the demands from the Attorney General’s office could negatively impact users and the wider video game industry. The Esports Radar will follow the story and provide updates as new facts come to light.
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