Roblox, Online Casinos Sued for Alleged Scheme that Allowed Minor Gamers to Wager Robux Digital Currency on Slots, Games

On Thursday, March 14, 2024, a class action lawsuit was filed against Roblox Corporation and three gambling enterprises in the Northern District of California.

The complaint alleges that Roblox knowingly facilitates underage gambling on its popular online gaming platform, which has over 60 million daily active users, many of whom are minors. According to the lawsuit, Roblox allows third-party websites to use the Roblox platform and its digital currency, Robux, to run illegal online casinos targeted at adolescent and teenage gamers.

Robux are purchased by users and can be exchanged both in virtual items within the Roblox universe and converted to real-world money. The lawsuit states that Roblox fails to disclose this digital currency can also be used to place bets at third-party online casinos accessible through links on Roblox. It is alleged three gambling enterprises named in the suit – Satozuki Limited B.V., Studs Entertainment Ltd., and RBLXWild Entertainment LLC, which operate sites like RBXFlip and Bloxflip – divert Roblox users, many of whom are minors, to their online slot machines and gambling games.

Once at these casinos, users can allegedly exchange their Robux for credits, which are then wagered on games similar to slots or virtual coin flipping with the goal of winning more credits. However, like in real casinos, the odds are stacked against the players and many minor gamers lose significant amounts of Robux, which can then be exchanged back to the gambling operators in dollars. Throughout this process, the complaint states that Roblox tracks the electronic Robux transfers and takes a 30% commission fee whenever Robux are ultimately cashed out, profiting from the illegal activity.

The plaintiffs in the case are parents who claim their minor children lost money through this scheme. They are seeking monetary damages on behalf of their children and propose classes of victims. If true, the allegations portray Roblox not only ignoring but facilitating an environment where children can gamble away money earned or received from parents without their knowledge or consent. The lawsuit raises serious issues about responsibility on online platforms increasingly used by minors.

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