Video game developer Valve Corporation is facing another legal challenge over its loot box mechanics, this time through a class-action lawsuit filed in Washington. The case follows a separate legal action brought earlier this year by Letitia James, who previously described the company’s loot boxes as a form of “quintessential gambling.”
The lawsuit specifically references several of Valve’s most popular titles, including Counter‑Strike 2, Counter‑Strike: Global Offensive, Dota 2, and Team Fortress 2. The law office Hagens Berman on Monday submitted a lawsuit against Valve for allegedly running a gambling-like operation through the sale of loot boxes via Steam, their online digital marketplace.
Managing partner Steve Berman said:
Consumers played these games for entertainment, unaware that Valve had allegedly already stacked the odds against them. We intend to hold Valve accountable and put money back in the pockets of consumers.
Among other things, the court filing contends that the way in which these games function means that they operate as gambling products in much the same way as casino-type slot machines and other forms of gambling do, since players of these video games spend real money and have access to random placements of certain Items (i.e., the prizes) when they open the loot boxes they purchase.
Over the past several years, loot boxes have become a very popular addition to modern video games across a variety of platforms. When players purchase a loot box, and open it, they receive randomly selected rewards in the form of Items that can be used to enhance their gaming experience (i.e., Character Skins, Cosmetic Items or Rarer Collectibles).
The litigation alleges that Valve’s purchase process for loot boxes mimics gambling and that their software uses casino-style visuals and other psychological tactics to encourage their customers to continue to purchase keys to open their loot boxes.
Also like the New York case previously mentioned, the Washington lawsuit expresses concern regarding the potential effect of Loot Boxes and other similar gambling-like systems have on minors. The lawsuit contends that Valve is aware that many of its customers are underage, but have failed to implement appropriate safeguards, including age verification and parental consent processes, to prevent minors from purchasing and opening Loot Boxes.
As of now, Valve has not publicly responded to the new lawsuit or the earlier claims regarding its loot box mechanics. The case adds to ongoing global debate about whether loot boxes should be regulated as a form of gambling within the video game industry.
