- Roblox, a popular online game with a large child player base, was sued for profiting off illegal and predatory gambling through third-party websites.
- The lawsuit claims children are using Roblox’s virtual currency at third-party websites to gamble on blackjack and other casino type games.
- Roblox allows and profits off these players, often minors, who use their currency at third-party gambling sites.
LOS ANGELES – Third-party websites are allowing Roblox players to use their virtual currency “Robux” to gamble on casino games like blackjack or roulette, leading two concerned parents to file a class action lawsuit. The lawsuit targets Roblox and three of the third-party websites offering the casino-like games illegally to children.
The lawsuit against the online gambling sites accuses them of knowingly taking advantage of children and profiting off their innocence. Roblox is aware of every transaction made with their virtual currency and they profit every time a child uses Robux at these illegal online casinos.
Two minors and their mothers, Rachelle Colvin of California and Danielle Sass of New York, are suing Roblox Corporation (“Roblox”), Satozuki Limited B.V. (“Satozuki”), Studs Entertainment Ltd. (“Studs”), and RBLXWild Entertainment LLC (“RBLXWild”), for maintaining and facilitating an “illegal gambling ecosystem, targeted at children, through Roblox’s online gaming platform and digital currency.”
Children are online gambling in California through the Roblox umbrella of gaming platforms targeted toward minors. Roblox has a 75% player base under 18 years old and more than half of the users are under the age of 13.
How are Kids Gambling on Roblox?
The parents representing their two children who lost thousands of Robux, which have to be bought with real money, explain the all too easy process for the sites getting kids to gamble.
“Here is how the process works: Roblox’s minor users first purchase Robux through the Roblox website, using either their own money, a parent’s credit card, or gift cards they possess. Next, the minor user navigates to one of the Gambling Website Defendants’ virtual casinos that exist outside the Roblox ecosystem. Then, the user links their Robux wallet on Roblox’s website to the gambling website. And finally, once the minor-user’s wallet is linked, the gambling website converts the minor user’s Robux into credits that can only be wagered in their virtual casinos. Throughout this process, Roblox keeps track of all of these electronic transfers and has knowledge of each transfer that occurs in its ecosystem.”
With no age verification process, children are encouraged to use the online casino to gamble their virtual currency. Although Roblox doesn’t endorse online gambling sites, Roblox takes a 30% commission on transfers of their virtual currency at third-party websites.
The full 55-page lawsuit against Roblox and their third-party websites can be found here.