Online gaming platform, Roblox, has been slapped with a multi-million dollar lawsuit, alleging it knowingly allows children to engage in gambling through shady, third-party sites. The firm, well aware of the platform’s in-game currency called ‘Robux’, is accused of profiting from this illegal practice.
The lawsuit squarely points a finger at entities such as RBXFlip, Bloxflip, and RBLXWild for operating illegal gambling games targeting children across the country. While Roblox categorically disallows in-game gambling, copious questions have arisen about the platform’s seeming tolerance for third-party betting sites apparent exploitation of the platform’s currency.
Roblox’s experiences notoriously entice young players with allure of lootboxes—virtual goods purchased with real money. This unregulated practice is legal in the U.S. but outlawed elsewhere, notably in countries like the Netherlands. There are increasing discussions of an EU-wide clampdown on this predatory practice which could drastically impact the revenues of game developers.
The lawsuit, publicly reported first by Bloomberg Law, was filed by plaintiffs Rachel Colvin and Danielle Sass. These mothers, whose children were allegedly seduced into gambling Robux on these third-party sites, claim to have lost thousands of the virtual currency without their knowledge.
Roblox, recognized for hosting myriad virtual games catering to children and teens, reportedly hosts third-party gambling sites that invite users to bet Robux on games of chance, such as blackjack, slots, and roulette. Ironically, Roblox itself is described as more of a platform listing virtual experiences than a traditional game developer.
The plaintiffs argue that the company’s terms of service are misleading. They fault Roblox’s insistence that its digital currency and platform are safe, especially in the face of known, illegal third-party gambling sites. In response, Roblox reassured that ensuring user safety and suspending entities who violate their policies or endanger their community is a primary tenet of their operation.
The plaintiffs argue that evidence of third-party betting sites seemingly operating with impunity within the Roblox ecosystem contradicts the company’s reassurances. Roblox’s seemingly passive approach to these violations, given the time they’ve had to act, is also under scrutiny.
Furthermore, Roblox’s support for limited edition virtual items has raised further questions. Often compared to NFTs, these rare virtual goods constitute an additional source of revenue for developers. However, given Roblox primarily caters to a young audience, the promotion of a Robux-based trading economy is viewed with growing concern.
This class-action lawsuit, filed in the Northern District of California, alleges that Roblox is knowingly allowing and profiting from illegal child gambling. The outcome of this case may set a precedent for other major online platforms centered around children and teens. As of yet, Roblox denies any affiliation with the accused gambling sites. However, the company’s action or lack thereof in light of these allegations might be a determinant for any potential legal ramifications it could face.
