Parents File Amended Class Action Against Roblox for Alleged Role in Online Gambling Scheme Targeting Children

News | May 7, 2024 By:

On Tuesday, April 23, 2024, a group of parents filed an amended consolidated class action complaint against Roblox Corporation and three gambling companies in California federal court.

The lawsuit alleges that Roblox knowingly enabled and profited from illegal underage gambling on its platform. Roblox is an online gaming platform popular with children, where users can play games and purchase virtual items using the in-game currency called Robux.

According to the complaint, Roblox facilitated underage gambling by allowing third-party gambling websites to use Robux from users’ accounts on bets placed in their online casinos, which are accessible outside of Roblox. The complaint states that minor plaintiffs and other children first purchased Robux on Roblox, often using their parents’ money. They then linked their Robux wallets to gambling websites run by the defendant companies Satozuki, Studs Entertainment, and RBLXWild Entertainment.

The gambling sites allegedly converted the children’s Robux into credits that could only be used to place bets in virtual slot machines, roulette, and other casino-style games. If the children won bets, they received additional Robux credits. But they usually lost their Robux, according to the complaint. The complaint specifies that Robux were never actually converted to another currency and remained within Roblox’s system during this process.

The lawsuit argues this constituted illegal underage gambling under state laws. It states that Roblox profited from the scheme by facilitating 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 for the minor plaintiffs and classes of similarly situated children, as well as injunctive relief to stop Roblox from enabling further underage gambling on its platform.

Public health experts’ reports cited in the complaint note high rates of gambling addiction among youth. It adds that Roblox knowingly failed to prevent the use of its virtual currency and platform for this purpose, taking advantage of its mainly underage user base for significant financial gain. The lawsuit alleges that hundreds of thousands of American children may have lost real money due to Roblox and the defendants’ concerted actions. It will be up to the California court to decide whether the complaint’s arguments have legal merit.

Please contact BlockTribune for access to a copy of this filing.