Roblox Faces Lawsuit Over Alleged Connections to Third-Party Gambling Sites

Parents are taking legal action against Roblox, asserting that the popular gaming platform profits from third-party gambling sites targeting minors. Rachel Colvin and Danielle Sass spearhead the class action lawsuit, claiming their children suffered monetary losses via the game’s digital currency, Robux, on these gambling sites.

The lawsuit, Colvin et al v. Roblox Corporation et al, was filed in the US District Court for the Northern District of California. The plaintiffs highlight the tangible value of Robux – each unit being equivalent to $0.0125.

Although Roblox’s terms strictly prohibit gambling simulations, the plaintiffs argue that the platform indirectly enables third-party gambling sites to accept wagers using Robux. Satozuki Limited BV, Studs Entertainment, and RBLXWild Entertainment, named as defendants, are alleged to have facilitated minor access to their gambling platforms through Roblox.

In defense, Roblox emphasizes its dedication to tackling entities that violate its guidelines or jeopardize the safety of its community. Contrarily, Colvin and Sass believe Roblox is fully aware of these third-party activities, a belief bolstered by concerns voiced by social media influencers associated with the platform. The lawsuit draws attention to a 2019 post by KreekCraft discussing a gambling site linked to Roblox that targets young users.

The post states: “It’s come to light about rblxflip today. This is a Roblox Robux gambling site, which is ILLEGAL for minors. Given the platform targets Roblox users, predominantly kids, it wouldn’t shock me if action is taken against it.”

Legal firms Weitz & Luxenberg and Johnson Firm, representing the plaintiffs, are pushing for a jury trial.

This lawsuit emerges amidst growing concerns about the overlap between video games and gambling. Platforms like Twitch have been compelled to tighten regulations due to the rising controversy. Likewise, criticisms are being directed at video games for incorporating gambling-esque elements, such as loot boxes. As a proactive measure, the UK’s gaming industry now restricts loot box access to those 18 and older, while similar restrictions are being considered in Germany.