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 weapons cases amount to unregulated gambling. Valve’s legal team at Milbank LLP submitted the proposal, which is currently being considered by New York Supreme Court Judge Nancy Bannon.
The case focuses on Counter-Strike 2’s weapon cases, which players receive from time to time. 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 obtain other rewards that do not require keys.
Valve’s main legal arguments against the New York 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, as “each player always gets what he paid for, one skin per Mystery Box.” The filing notes that although users may value skins subjectively, they are not considered tokens exchangeable for money, property, money or property, credit or promises under New York gambling law.
Second, Valve compares these cases to popular collectible items such as baseball cards, Labus, comic book grab bags, cereal box toys, and Happy Meal prizes. “People enjoy surprises. Part of the appeal of many collectible items, from baseball cards to cereal boxes, is the chance to open a sealed package and obtain a rare item. No legislature or court has ever considered that act to be illegal gambling,” the filing said.
Third, Valve argues that a ruling in New York’s favor could have broader consequences. The filing asks whether parents can buy packs of baseball cards for their children, or families can go to Chuck E. Cheese’s to play games of chance and exchange tickets for prizes.
This raises concerns that such actions, such as a child reaching into a cereal box and grabbing a surprise toy, could constitute a chargeable offense under the state attorney general’s interpretation of gambling.
Why Valve compared Counter-Strike loot boxes to baseball cards, and what New York wants
The New York 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 logic to collectibles.
The record sale for a baseball card is a 2013 Bowman Chrome Draft SuperFactor Aaron Judge rookie card, which was sold privately for $5.2 million. The existence of a secondary market does not turn a commodity into a gambling currency, the filing said.
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, preventing it from being brought again.
Changes to existing Counter-Strike 2 loot boxes
Valve has made changes to the Counter-Strike 2 loot box system over the years. Players now have the option to receive weekly rewards and avoid opening random item boxes if they wish.
Some of these changes were driven by regulators rather than being voluntary. In Germany, Valve was required to comply with German gambling laws by including an item indicating the contents of a case before it could be opened. 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 determined. Meanwhile, a separate class-action lawsuit against Valve over loot boxes is ongoing in another court.
