Lawsuit Alleges Valve Used Casino-Style Tactics to Profit from Millions of Unsuspecting Gamers, Including Children, Generating Billions in Revenue

Hagens Berman, on behalf of a proposed class of consumers nationwide, today announced the filing of a class-action lawsuit against Valve Corporation, the Washington-based developer behind some of the world’s most popular video games.

The lawsuit, filed March 9, 2026, in the U.S. District Court for the Western District of Washington, accuses Valve of knowingly operating unlawful gambling through its loot box system, a feature the lawsuit alleges was carefully engineered to extract money from consumers, including children, through deceptive, casino-style psychological tactics.

“We believe Valve deliberately engineered its gambling platform and profited enormously from it,” said Steve Berman, Hagens Berman’s founder and managing partner. “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.”

If you or your child spent money to purchase a loot box key or open a loot box in the Counter-Strike series, Dota 2 or Team Fortress 2, contact us today »

The Loot Box Scheme

Valve distributes loot boxes to players for free through its games Counter-Strike (including Counter-Strike 2 and Counter-Strike: Global Offensive), Dota 2 and Team Fortress 2, which attract millions of players every month. Loot boxes are locked virtual containers that, when unlocked, give users a chance to win a valuable cosmetic prize, such as a weapon skin or character accessory.

To unlock a loot box, players must purchase a key from Valve for approximately $2.50. Players have no control over the prize inside a loot box. The prize and odds of winning a high-value prize is determined entirely by Valve’s software. The complaint alleges the prize is typically worth only pennies. But on rare occasions, it can be worth hundreds or thousands of dollars.

The suit alleges Valve knowingly designed its loot box system using the same psychological triggers that casino game manufacturers have refined over decades to keep people spending money, including unpredictable reward schedules, sensory design, near-miss illusions, chasing losses and around-the-clock availability.

Even the onscreen experience of unlocking a loot box in Counter-Strike resembles a virtual slot machine, with a simulated spinning wheel showing images of potential prizes, according to the complaint.

Attorneys claim players open loot boxes for the same reason they play slot machines – the chance to win a valuable prize.

According to the lawsuit, Valve’s loot box feature is a “deliberate, carefully engineered revenue model,” allowing Valve to profit first on the sale of the loot box key, and subsequently through a 15% commission it collects when users sell their virtual prizes through its Steam Community Market. It is estimated that Valve has sold billions of dollars’ worth of loot box keys for its Counter-Strike series alone.

Significant Risks, Especially for Children

“What makes this case particularly egregious is that Valve knew children were on the other end of these transactions,” said Berman. “Rather than protect young players through age verification or a parental consent mechanism, we believe they rigged the game to extract more money from them.”

Research has shown that adolescents are especially vulnerable to loot box systems and children introduced to gambling are four times more likely to develop a gambling problem later in life.

The lawsuit seeks to recover treble damages, as well as injunctive relief requiring Valve to cease the operation of its alleged unlawful gambling operation and full disgorgement of gains unjustly received.

Learn more about the class action against Valve Corporation »

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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The lawsuit accuses Valve of knowingly operating unlawful gambling through its loot box system, a feature the suit alleges was carefully engineered to extract money from consumers, including children, through deceptive, casino-style tactics.