Valve faces class-action lawsuit over loot boxes and illegal gambling allegations

Simultaneously, the state of New York has initiated its own legal proceedings against Valve, targeting practices that officials claim transform loot box mechanics into a form of unregulated gambling.

Valve is facing a class-action lawsuit alleging that the company facilitates an illicit gambling ecosystem through in-game loot boxes.

The complaint, filed on March 9 in the U.S. District Court for the Western District of Washington, asserts that Valve intentionally orchestrated an illegal gambling enterprise, leveraging randomized reward systems to extract money from its user base.

Representing the plaintiffs, Hagens Berman’s managing partner Steve Berman argued that Valve has rigged the system against ordinary consumers seeking recreation. He stated that the firm aims to “hold Valve responsible and recover funds for affected users.”

Furthermore, the lawsuit claims loot boxes are meticulously crafted using psychological manipulation to drive spending, highlighting the specific risks these mechanics pose to underage players.

In a parallel move, New York state regulators have also challenged Valve, asserting that their loot box implementations are functionally equivalent to gambling.

Source: iXBT.games