Online gaming platform Roblox has been hit with a class action lawsuit accusing the company of allowing “an illegal gambling operation” to target minors.
According to the prosecution, Roblox’s digital currency, known as ‘Robux’, has been exploited for gambling purposes, with children and teens accessing third-party gambling sites a to play blackjack, slots, roulette and other games of chance after purchasing Robux using their parents’ credit cards.
The lawsuit identifies several gambling sites – including Satozuki, Studs Entertainment and RBLXWild Entertainment – describing them as “an illegal gambling operation that is preying on children nationwide”.
It has been filed by parents who say their children have lost “thousands of Robux” on such sites.
Roblox has also been accused of profiting from the scheme through a 30% fee on the conversion of Robux back into real currency.
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The online gaming platform allegedly makes millions annually from these fees, however, it has not taken action to put an end to the issue, despite being aware of the presence of these gambling networks on its own platform.
The plaintiff asserts that Roblox’s terms of service, which supposedly prohibit simulated gambling, are contradicted by the platform’s allowance of third-party gambling sites to accept bets in Robux. It also argues that the gambling sites encourage minors to promote them by offering rewards such as free Robux for promoting the sites on platforms like TikTok.
In response, Roblox has stated that these third-party sites operate without any legal affiliation with the company and are infringing on Roblox’s intellectual property and branding.
The company asserts that it was unaware of the gambling networks but has vowed to remain vigilant in ensuring its platform’s safety and adherence to policies.
Bands such as Duolingo or Kickers – which both specifically target children – often partner with Roblox for immersive creative campaigns aimed at the younger audience. However, legislation surrounding advertising towards under-18s is making it a prime target for harmful content where unregulated.
