New York Attorney General v. Valve (CS2 loot boxes): Allegations, Court Orders and Status

New York's Attorney General sued Valve Corporation on February 25, 2026, alleging that paid keys for Counter-Strike 2, Dota 2 and Team Fortress 2 cases are gambling, and as of November 14, 2026 we have found no ruling on Valve's motion to dismiss.

In our record it is the first state lawsuit against a game publisher over loot boxes.

No payout exists and no claim form is open. The case is an enforcement action by the State, not a settlement class. Filing a settlement claim is always free, and GamblingLawsuits.org is not a law firm and not a claims administrator.

What this case is about

The case is People of the State of New York, by Letitia James, Attorney General v. Valve Corporation, Index No. 450952/2026, in the Supreme Court of the State of New York, New York County.

Valve is being sued because the Attorney General says paid cases are gambling. A complaint states one side's allegations, and only the court's orders decide anything.

What the Attorney General alleges about CS2, Dota 2 and Team Fortress 2 cases

The Attorney General alleges that cases opened with paid keys are "quintessential gambling" because the randomized items can be sold for cash. The press release says the CS2 skin market exceeded USD 4.3 billion in March 2025 and that one skin sold for USD 1 million in June 2024.

The Attorney General also alleges that the opening animation resembles a slot machine and that Valve sets the odds and profits from resale commissions.

Paid cases of this kind fall into the loot box category, and this is the first state suit against a publisher over them; it joins the other loot box lawsuits we track.

The complaint also cites the size of the platform. It says Steam has 132 million monthly active users and 69 million daily users, and that CS2 has about 24 million monthly players. Those are the complaint's figures, not findings, and they sit beside the allegation that Valve sold keys to thousands of New York residents.

The legal claims: Executive Law 63(12), the Constitution and the Penal Law

The complaint pleads three causes of action under Executive Law 63(12), the Attorney General's enforcement statute.

It also relies on New York Constitution Article I, Section 9, and on Penal Law 225.05 (promoting gambling in the second degree) and 225.10 (promoting gambling in the first degree). The legal question is whether loot boxes are gambling under New York law.

That question has not been decided under New York law, and California federal judges held loot boxes were not slot machines in Taylor, Coffee and Mai. Our guide asking are loot boxes gambling sets out what courts and regulators have ruled.

Who is covered

No one is covered in the sense of a settlement class: the plaintiff is the State of New York, not a group of players.

Who the case protects and who can claim

The complaint says Valve made tens of millions of dollars selling keys to thousands of New York residents, which is why the Attorney General seeks an accounting of New Yorkers' losses. That figure is an allegation, not a finding.

No claim process exists. Players who want a private claim can look at a separate class action by players, Flauto v. Valve, filed in the Western District of Washington on March 9, 2026 (2:26-cv-00788), twelve days after the Attorney General's complaint. Other state matters appear under every gambling lawsuit in New York.

Is there a payout?

No payout exists and no claim form is open: this is a lawsuit by the New York Attorney General, and the relief it asks for (an accounting of New Yorkers' losses, restitution and damages, disgorgement and a fine of three times Valve's gain) names no sum and has not been awarded.

Relief the Attorney General seeks

The prayer for relief in the complaint (Index No. 450952/2026) asks for four things. No sum is stated in the pleading, "restitution" is relief sought and not an award, and any money would be ordered by the court.

Larger figures that circulate online for what Valve might owe do not appear in the complaint, so we do not repeat them.

Relief sought (complaint, Index 450952/2026): accounting of New Yorkers' losses; full restitution and damages; disgorgement; fine of 3x Valve's gain
Sum stated: none; payout: none; claim form: none

• an accounting of New Yorkers' losses
• full restitution and damages
• disgorgement
• a fine of three times Valve's gain

What happens next

The next step is the court's decision on Valve's motion to dismiss, and no ruling has been found as of November 14, 2026.

Valve's motion to dismiss and the reported January 2027 argument

Valve filed a 42-page motion to dismiss on May 18, 2026, according to press reports, arguing that every player receives exactly one skin per box, so there is no stake or risk. It compares the cases to baseball cards and asks for dismissal with prejudice.

The Attorney General opposed the motion, per press, and the matter is reported before Justice Nancy M. Bannon. Oral argument was reported adjourned to January 26, 2027; we have not retrieved the court docket to confirm.

Until a court record shows otherwise, treat the motion date, the assigned justice and the argument date as press-reported. Every case against Valve is listed under Valve lawsuits.

Timeline

The case follows a tolling period that began in April 2023.

Tolling agreements kept the Attorney General's claims alive until the complaint, which suggests the inquiry began by spring 2023. The 2016 Washington directive is background and not part of this case.

What the court has decided so far

No court has ruled on the merits: the only filings are the complaint, Valve's motion to dismiss and the Attorney General's opposition.

As of May 18, 2026 the status is motion to dismiss, and no ruling has been found. A complaint states allegations and a motion states arguments; neither is a finding, and none of the dates after the complaint comes from a court document we have read.

Documents and sources

The complaint and the Attorney General's press release are the primary sources; the motion to dismiss rests on press reports because we have not retrieved the court's electronic docket.

• Complaint, Index No. 450952/2026 (ag.ny.gov, primary, filed 2026-02-25)
• Attorney General press release (ag.ny.gov, primary, 2026-02-25)
• Valve's motion to dismiss as reported (ghacks.net, secondary, 2026-05-21)
• Opposition and the 2027-01-26 argument, as reported (tech-insider.org, secondary)
• Court docket: not retrieved

Related cases

Related cases show how earlier skin-gambling and loot box suits against Valve and others ended.

Other Valve and skin-gambling cases

Valve has been sued over skins before and has not lost a case in our record.

• Valve loot box class action (Hagens Berman): filed March 9, 2026, no ruling found
• McLeod v. Valve: 2016 skin gambling class action, dismissed November 22, 2016
• G.G. v. Valve: minors' skin and loot box suit, dismissed January 7, 2022
• Washington Gambling Commission v. Valve: 2016 regulator directive, no court proceeding and no enforcement followed

For the full list, see every Valve lawsuit on the company page.

Other loot box cases against publishers

Other publishers face loot box suits with different outcomes.

• Royal Match gambling class action: on November 10, 2025 the court refused to dismiss, letting Washington claims proceed
• Fortnite FTC USD 245 million refund order: a regulator refund order, claims closed on July 9, 2025

The same Attorney General's office settled with a sweepstakes operator in the New York AG v. VGW settlement, an administrative agreement rather than a lawsuit.

Questions people ask

Is New York suing Valve?

Yes: on February 25, 2026 the Attorney General filed Index No. 450952/2026 in New York County. The complaint names Valve Corporation as the defendant, and the Attorney General's office describes it as the first state lawsuit against a game publisher over loot boxes.

What does the Attorney General want from Valve?

An accounting of New Yorkers' losses, restitution and damages, disgorgement and a fine of three times Valve's gain. The complaint states no sum.

Has the court ruled on Valve's motion to dismiss?

Not as far as we have found as of November 14, 2026; Valve moved to dismiss on May 18, 2026, per press. The docket has not been retrieved, so we cannot rule out a filing we have not seen.

Can I join the lawsuit or get money?

No claim form exists for this case; a separate class action by players is pending in Washington. Details are on the page for the Valve loot box class action in Washington.

Does this case decide whether loot boxes are gambling?

No; a ruling on the motion would decide only whether the complaint can go forward, and loot box law differs by state. Our guide asking are loot boxes gambling compares the rulings.

Which games are named in the New York lawsuit?

Counter-Strike 2, Dota 2 and Team Fortress 2. These are the three games named in the complaint and the press release.

When is the next hearing?

Press reports say oral argument was adjourned to January 26, 2027; we have not retrieved the court docket to confirm. We will update this page when a court record shows a date.

GamblingLawsuits.org is a non-commercial project. It takes no money from operators, affiliates or law firms. We are not a law firm and not a settlement administrator. Last checked: November 14, 2026. Next checks: weekly, and on any court order.