Roblox Faces Lawsuit over Child Gambling Allegations

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Roblox, a popular online gaming platform, is currently embroiled in a class action lawsuit. Parents Rachel Colvin and Danielle Sass have accused the platform of functioning as an illegal gambling ring that specifically targets children.

The lawsuit, filed in the US District Court for the Northern District of California, alleges that Roblox has breached the Racketeer Influenced and Corrupt Organisations Act by profiting from the gambling activities of minors.

Parents Challenge Third-Party Gambling Sites Targeting Minors

Central to the lawsuit is the claim that children have lost money through third-party gambling websites linked to Roblox. These losses were incurred using Roblox's internal digital currency, 'Robux.' Notably, Robux isn't just a virtual currency without real-world value. Each Robux is equivalent to $0.0125, making the losses tangible for many families.

Despite Roblox's terms of service explicitly prohibiting simulated gambling, Colvin and Sass argue that the platform has turned a blind eye to third-party sites that accept bets using Robux. In response, Roblox has reiterated its dedication to taking action against any entities that violate its policies or jeopardize the safety of its community.

The lawsuit doesn't just target Roblox. Other defendants named include Satozuki Limited BV, Studs Entertainment, and RBLXWild Entertainment. These entities are accused of offering gambling websites to Roblox's user base, a significant portion of which are minors.

This comes not long after UK Interactive Entertainment proposed an age restriction for loot boxes in video games.

Roblox under Scrutiny

Evidence supporting the parents' claims includes concerns voiced by social media influencers affiliated with Roblox. A notable instance from 2019 involves a post by a user named "KreekCraft." The user highlighted concerns about a gambling site linked to Roblox, stating, “Heard a lot about rblxflip today. It's a Roblox Robux gambling site. Given that this site is marketed towards Roblox users, who are predominantly kids, it's likely to face closure due to its illegal nature.”

The legal teams representing Colvin and Sass are Weitz & Luxenberg, PC, and the Johnson Firm. They have formally requested a trial by jury to address these serious allegations.

As the case, titled Colvin et al v. Roblox Corporation et al, progresses, it underscores the growing concerns many parents have about the potential dangers lurking in online platforms popular with children. The outcome could set a precedent for how online gaming platforms manage third-party integrations and protect their younger users.