Roblox Tries to Get Gambling-Related Lawsuits Dismissed
Roblox urged a federal judge in San Francisco on Thursday to dismiss claims that it facilitated illegal gambling through the use of its in-game currency, Robux. The case is part of a proposed class action brought by parents who allege their children lost money on third-party virtual casinos that accepted Robux for wagers.
LISTEN TO THIS ARTICLE:The hearing before US District Judge Vince Chhabria focused on whether the plaintiffs had presented a legally valid claim under California's Unfair Competition Law. The parents argue that Roblox engaged in unlawful conduct by enabling gambling activities, while Roblox maintains it did not operate or control any gambling enterprises.
Related: Roblox Seeks Dismissal of Underage Gambling LawsuitThe judge did not issue a ruling from the bench but raised doubts about whether the plaintiffs' claims could be tied to California's criminal gambling statutes.
Judge Chhabria questioned whether the parents' reliance on California penal code provisions was a stretch, noting that Roblox itself was not running a gambling operation. He added that courts must be cautious when applying criminal law in a civil context because such interpretations can extend criminal liability beyond its intended scope. This caution underscored his concern about treating the allegations as unlawful conduct under the state's gambling laws.
Despite these reservations, Judge Chhabria pointed out that the parents might still pursue their claims under the unfair business practices provision of California's Unfair Competition Law. He noted that a company could be held liable if it acted in a way that violated the spirit of the law, even if its conduct did not meet the strict definition of illegality. This suggestion raised the possibility that the case could continue on narrower grounds even if some claims are dismissed.
The parents' attorney, Andre Mura, responded that the plaintiffs wanted to keep all available legal avenues open at this stage of the proceedings. He explained that the case was still in the pleading phase and no finding of criminal liability had been made.
Mura argued that determining whether Roblox could be held responsible for unlawful conduct should be reserved for later stages, such as summary judgment, when more evidence would be available about how the third-party gambling platforms functioned.
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In their complaint, the parents claim Roblox knowingly permitted third-party gambling websites to accept wagers using Robux and profited by charging a 30% fee when players converted Robux back into real money. They allege this arrangement generated millions of dollars for Roblox.
The company disputes these allegations, asserting that it neither operated nor controlled any virtual casinos and had no agreements with them. Roblox argued in its motion to dismiss that the statutes cited by the plaintiffs do not apply because the company did not own, lease, or manage the gambling sites.
At the hearing, Roblox attorney Robby Saldaña supported the judge's concerns, stating that applying criminal statutes in a private civil case risked creating consequences beyond the litigation itself. He agreed with the court that such interpretations must be made carefully because they involve criminal law principles with broader implications.
The lawsuit, filed as a proposed class action, includes additional claims under federal and state law. The plaintiffs have sought a jury trial, accusing Roblox of violations of federal anti-racketeering laws, state gambling provisions, and negligence.
Judge Chhabria previously dismissed the racketeering claims but allowed the negligence allegations to move forward in a separate ruling. The current dispute over the unlawful conduct claims represents the latest stage in ongoing litigation between Roblox and parents seeking to hold the company accountable for alleged gambling activity linked to its platform.
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