arXiv:2602.06232v2 Announce Type: replace-cross Abstract: Game balancing is a longstanding challenge requiring repeated playtesting, expert intuition, and extensive manual tuning. We introduce RuleSmith, a framework that couples multi-agent LLM self-play with surrogate-based optimization over a parameterized rule space. As a proof of concept, we build CivMini, a simplified civilization-style game with two asymmetric factions governed by 12 tunable parameters. LLM agents interpret textual rulebooks and game states to propose actions that are validated by the game engine, yielding noisy estimates of faction win rates. Our primary implementation uses Gaussian-process Bayesian optimization with Expected-Improvement-based adaptive sampling to allocate more evaluation games to promising candidates. RuleSmith consistently finds near-balanced configurations: three independent optimization runs reach near-even empirical win rates in independent 200- and 300-game evaluations, and additional experiments with NTBEA and TPE show that the same self-play interface supports different search components. Cross-model evaluations and small human studies provide preliminary evidence of transfer across player populations. RuleSmith produces interpretable numerical rule adjustments without task-specific policy training. Project and code: https://adonis-galaxy.github.io/RuleSmith-website/