Valve has filed a motion to dismiss the lawsuit brought against it by New York Attorney General Letitia James in February 2026. The case claims that Counter-Strike 2 weapon cases amount to unregulated gambling. Valve's legal team at Milbank LLP submitted the motion, which is currently being considered by New York Supreme Court Justice Nancy Bannon.
The case focuses on Counter-Strike 2's weapon cases, which players receive periodically. Each case contains a random skin from a specific collection, and opening a case requires purchasing a key for $2.49. Players also have the option to receive other rewards that do not require keys.
Valve’s Core Legal Arguments Against New York’s Loot Box Lawsuit
Valve's filing presents three main arguments against labeling their activity as gambling:
First, Valve claims that there is no real "stake" or "risk" involved, since "every player always receives exactly what he paid for, one skin per mystery box." The filing notes that although users may value skins subjectively, they are not considered money, property, tokens exchangeable for money or property, credits, or promises under New York gambling law.
Second, Valve compares these cases to popular collectibles such as baseball cards, Labubus, comic book grab bags, cereal box toys, and Happy Meal prizes. The filing states, "People enjoy surprises. Part of the appeal of many collectibles, from baseball cards to cereal boxes, is the chance of opening a sealed package and getting a rare item. No legislature or court has ever deemed that act illegal gambling."
Third, Valve argues that a ruling in favor of New York could lead to broad consequences. The filing asks whether parents could buy packs of baseball cards for their children, or families go to Chuck E. Cheese to play games of chance and exchange tickets for prizes.
It raises the concern that such actions, like a child reaching into a cereal box and grabbing a surprise toy, could become chargeable crimes under the state attorney general's interpretation of gambling.
Why Valve Compares Counter?Strike Loot Boxes to Baseball Cards, and What New York Wants
New York's case argues that Counter-Strike skins have monetary value because players can resell them through Steam and third-party trading sites, with some weapon skins reportedly trading for very large sums. Valve's response applies the same reasoning to collectibles.
The record sale for a baseball card is a 2013 Bowman Chrome Draft Superfractor Aaron Judge rookie card, which was sold privately for $5.2 million. The filing notes that the existence of a secondary market does not transform an item into gambling currency.
The state's lawsuit seeks damages equal to three times Valve's profits from loot boxes and requests a court ruling that Valve cannot sell loot boxes in New York in the future. Valve is asking the court to dismiss the case with prejudice, which would prevent it from being brought again.
Existing Counter?Strike 2 Loot Box Changes
Valve has made changes to the Counter-Strike 2 loot box system over the past few years. Players now have the option to receive weekly rewards and can avoid opening randomized item boxes if they prefer.
Some of these changes were driven by regulators rather than being voluntary. In Germany, Valve was required to include an item that shows the contents of a case before opening it to comply with German gambling laws. This requirement does not currently apply in the United States or other markets.
A decision on Valve's request to dismiss the case has not yet been scheduled. Meanwhile, a separate class-action lawsuit over loot boxes against Valve is ongoing in another court.
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