| New York Attorney General Letitia James is taking a righteous swing against one of the most malign forces in the video-gaming industry: loot boxes.
Loot boxes are an item you can earn while playing certain types of online multiplayer video games; when opened, they generate a random reward. That reward is usually a “skin,” which is a cosmetic item that changes the appearance of your character or gun or gear.
Some games like, say, Fortnite, allow players to buy these cosmetic skins directly from the in-game shop: If you want your character to look like Darth Vader, you can just go buy the Darth Vader skin. But games that work on the loot-box system don’t let you buy the skin outright. Instead, you buy the box (or, usually, you buy the “key” that lets you open the box you won while playing the game) and that box has a chance to have the skin you’re looking for. But the box also has a chance to generate something that you’re not looking for, or something you already have, or something you generally don’t want. Obviously, the chances are higher that the box will spit out a low-value item than a desirable one.
If this all sounds like gambling to you, it absolutely should. A loot box is a slot machine. I’m not saying it’s like a slot machine, I’m saying it’s an actual slot machine in all but name. When you open loot boxes they literally have spinning wheels or a moving line showing you all your possible outcomes, and you watch while it slows and eventually lands on the thing you get, which is exactly the visualization of a slot machine. Players literally talk about buying keys as buying more “pulls” on the thing to get what they want.
And what they want is to make real money. These skins are not valueless cosmetics enjoyed by hardcore fans; in some games, entire economies, usually run by third-party businesspeople tacitly supported by the game makers, have popped up to buy and trade skins. In one game, Counter-Strike 2: Global Offensive (CS:GO), made by the Valve corporation, there’s even a stocks-like speculative market based on the predicted future value of these skins. One CS:GO weapon skin sold for $400,000 a few years ago and is estimated to be worth $1.5 million today. If you pull one of these rare skins, you’ve hit the jackpot. And, of course, every time you sell one of these skins to another player through Valve’s immensely popular storefront, Steam, Valve takes a cut.
Late last month, Tish James sued Valve for supporting this illegal gambling ring through its games, which include CS:GO, Team Fortress 2, and Dota 2. The complaint alleges that Valve is operating slot machines without a license, because opening loot boxes is not a “skill-based” activity but a straight-up game of chance.
This is not the first time somebody has gone after Valve over its loot boxes. Loot boxes are banned altogether in Belgium and the Netherlands, and heavily regulated in China and Japan. But the United States has kind of been the Wild West of loot boxes, with no regulator or politician except (and I hate to say this man’s name in a positive context) Senator Josh Hawley really trying to do anything to stop them.
You might think gamers would generally appreciate James’s effort to rid the industry of this predator practice, but that is not the case. There are a few reasons for that. The first and most obvious one is that gamers are fanboys and the large CS:GO community is worried about know-nothing regulators interfering with their game. On top of that, Valve is an extremely popular company among gamers, myself included. Valve is generally one of the good guys in gaming (loot boxes excepted).
The second problem is that, while the lawsuit focuses on the illegal gambling inherent in the loot-box system, James’s press release about the lawsuit is just full of the same tired bullshit old people always say about video gaming. “[I]t is important to note that Valve’s promotion of games that glorify violence and guns helps fuel the dangerous epidemic of gun violence, particularly among young gamers who can become numbed to grave violence before their brains are fully developed.” No… it is not important to note that Valve “helps fuel the dangerous epidemic of gun violence,” because Valve does not do that. THE PEOPLE SELLING THE REAL GODDAMN GUNS do that, not the video game selling paint jobs for fake guns. My kingdom for a regulator more interested in helping gamers than insulting them.
But the astute gamer will recognize the third big problem with James’s lawsuit: What will Valve do if the state wins? Valve is estimated to earn over a billion dollars from loot boxes in CS:GO alone. It’s not just going to give that revenue stream up.
The most likely answer is that Valve (if it loses after years of litigation) will just… apply for a gambling license. But to get one, it will have to implement an age-verification system, one that greatly restricts access to its games, not just for people under 18 but for people under the age of 21, because that’s what most gambling laws require. Folks, I don’t have to tell you that a lot of 18-to-21-year-olds play video games (to say nothing of the 17-and-under crowd). Moreover, age verification often creates unnecessary and annoying hurdles for people well over 21 (like me), who don’t want to pull out a driver’s license or plop down a credit card every time they want to play a game. And don’t even get me started on the new “AI age-verification” technology I’ve seen, where you have to let the AI take a picture of your face (that it will totally delete, it super double promises) so it can guess your age.
Most gamers hate loot boxes and would like to see them banned. But from the perspective of those same gamers, this is a lawsuit that could fundamentally change and restrict the access to video games—all because some idiots are gambling thousands of dollars on loot boxes no one is actually forcing them to buy.
All I can say is: Watch this space. Because while James absolutely has the law on her side, Valve is a billion-dollar corporation, and it’s going to fight this with everything it has. And many of the victims of Valve’s predatory practices will be defending Valve because the alternative seems worse.
Now if you’ll excuse me, I have to go not play any of these games and instead play one that allows me to buy a new skin directly from its source, as God intended. |