Concerned parents sue Roblox over child gambling allegations

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Virtual gaming platform Roblox faces a class action lawsuit in the Northern District of California. The lawsuit, filed by two concerned parents, alleges that Roblox has unlawfully facilitated child gambling.

Despite its explicit prohibition of gambling, this legal action brings attention to the involvement of third-party gambling websites. These websites are reported to lure users, primarily children and teenagers, into playing games of chance, such as blackjack, slots, and roulette, using Roblox’s in-game currency.

This lawsuit raises critical questions about the platform’s responsibility and impact on young users.

Misleading representation at best

Bloomberg Law first reported the lawsuit, representing Rachel Colvin and Danielle Sass as the plaintiffs. Both are mothers whose children gambled on third-party platforms linked to Roblox’s virtual currency, Robux.

The lawsuit alleges that their minor children lost substantial amounts of Robux while gambling on these platforms without parental knowledge. Currently, Robux is sold on its website at a rate of 800 Robux for $9.99.

The lawsuit explicitly identifies RBXFlip, Bloxflip, and RBLXWild as involved in what it describes as “an illicit gambling scheme targeting children across the nation.” Alongside Roblox, the owners of these platforms are named as defendants.

RBXFlip, which promotes itself as offering “fun and equitable games,” has been under the Roblox community’s scrutiny since at least 2019 and continues its operations.

Roblox offers various virtual experiences created by multiple developers, some of which subtly feature gambling elements like casinos or non-player card dealers. However, Roblox’s official policy explicitly forbids experiences simulating gambling, including virtual betting, real money exchange or using Robux or valuable in-game items.

The plaintiffs argue that these rules are misleading, given Roblox’s perceived tolerance for third-party gambling sites. The lawsuit claims that through its Terms of Service, Roblox deceptively reassures users and parents about the platform’s safety and the security of its digital currency.

The lawsuit claims that Roblox exercises control over the circulation of Robux. By doing this, the game sould be aware of unscrupulous third-party gambling websites that entice children into using the in-game currency.

When contacted by TechCrunch via email, Roblox declined to provide specific answers to inquiries. However, it underscored that gambling websites have no official association with the platform.