Valve compares its loot boxes to Labubus in lawsuit defense

March 13, 2026

Here's something that caught my attention — Valve just compared its loot boxes to labubu in a legal defense, which is pretty wild. So, the New York Attorney General is suing Valve, claiming their loot boxes promote illegal gambling. Now, Valve responded publicly, saying, 'Hey, this is just like opening baseball card packs or blind bags,' citing examples like Pokémon and Magic the Gathering. But here’s where it gets interesting — according to Kyle Orland writing in Ars Technica, Valve points out that unlike those physical items, their loot boxes are tightly controlled through the Steam Marketplace. That’s the only legit way to buy, sell, or trade these in-game items, and Valve has actively shut down third-party sites that turn these items into gambling chips. So, what does this actually mean for you? Valve’s argument is that digital loot boxes aren’t the same as buying real-world collectibles because they’re locked behind a marketplace they control. The case is a big deal — could set a precedent for how digital gambling is viewed in gaming.

Last month, the New York Attorney General (NYAG) brought a lawsuit against Valve accusing the company of promoting "illegal gambling" through its randomized in-game loot boxes. On Wednesday, Valve issued its first public comment on the case, comparing its digital loot boxes to randomized real-world purchases like blind-bagged toys or packs of trading cards.

"Generations have grown up opening baseball card packs and blind boxes and bags, and then trading and selling the items they receive," Valve wrote. "On the physical side, popular products used in this way include baseball cards, Pokemon, Magic the Gathering, and Labubu."

Though that may seem like an apt comparison on the surface, Valve's loot boxes differ from these real-world examples in large part because of Valve's control of the Steam Marketplace, which serves as the only legitimate way to exchange or resell those items. While owners of real-world items are free to trade or sell them however they want, Valve has cracked down on many third-party sites that enable the exchange of in-game items—especially when those items are used as glorified chips for gambling games.

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Audio Transcript

Last month, the New York Attorney General (NYAG) brought a lawsuit against Valve accusing the company of promoting "illegal gambling" through its randomized in-game loot boxes. On Wednesday, Valve issued its first public comment on the case, comparing its digital loot boxes to randomized real-world purchases like blind-bagged toys or packs of trading cards.

"Generations have grown up opening baseball card packs and blind boxes and bags, and then trading and selling the items they receive," Valve wrote. "On the physical side, popular products used in this way include baseball cards, Pokemon, Magic the Gathering, and Labubu."

Though that may seem like an apt comparison on the surface, Valve's loot boxes differ from these real-world examples in large part because of Valve's control of the Steam Marketplace, which serves as the only legitimate way to exchange or resell those items. While owners of real-world items are free to trade or sell them however they want, Valve has cracked down on many third-party sites that enable the exchange of in-game items—especially when those items are used as glorified chips for gambling games.

Read full article

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Valve compares its loot boxes to Labubus in lawsuit defense | Speasy