Steam bans games that force players to watch ads
Valve says developers or publishers are not allowed to use paid ads for their business in the game.

The ads referred to by Valve are those that require players to watch or interact before they can continue playing. This also applies to ads that limit players from playing.
Valve also emphasizes that if any developer or publisher inserts ad features like this in their game, they must quickly remove that element before the game is distributed on Steam.

Developers are not allowed to use ads to give certain rewards to players just because they watched or interacted with the ad.
Valve also provides several options that developers or publishers can consider, such as turning their game into a "paid game" or a "free-to-play" game with upgrade purchase options through Microtransaction or DLC.