Roblox is an online gambling platform popular with children. Through this, users can play games and purchase virtual items using Robux, the in-game currency.
Last April 23, a group of parents filed an amended consolidated class action against Roblox Corporation along with three gambling companies in California federal court.
The lawsuit alleges that Roblox enabled and profited from illegal gambling for underage players on its platform.
As per the complaint, Roblox made underage gambling possible by allowing third-party gambling websites to use Robux from users’ accounts on bets placed in their online casinos. These are accessible outside of Roblox. Minor plaintiffs and other children first bought Robux on Roblux as stated in the complaint. The players often use their parents’ money. The defendant companies Satozuki, Studs Entertainment, and RBLXWild Entertainment linked their gambling websites to their Robux wallets.
The gambling sites allegedly converted the children’s Robux into credits that could only be used to place bets on virtual slot machines, roulette, and other casino-style games. The children received additional Robux credits if they won bets. But according to the complaint, they lost their Robux more often. The complaint specifies that during this process, Robux never actually converted to another currency and remained within Roblox’s system.
The lawsuit argues that this constituted illegal underage gambling under state laws. As stated, Roblox profited from the scheme through facilitation of the transfers of Robux within its system and collecting a 30% fee whenever the gambling operators converted collected Robux back to cash. The suit seeks monetary relief. This is for the minor plaintiffs and classes of likely situated children. Moreover, injunctive relief to stop Roblox from enabling further underage gambling on its platform.
