Roblox involved in class action lawsuit over gambling sites using its in-game currency

August 17, 2023
By
Leer en Español

Virtual casinos are accepting bets in Robux, an in-game currency from a online platform popular with children.

Roblox, an online gaming platform popular with children, has allegedly been involved in an illegal gambling ring where young players are losing money.

Parents Rachel Colvin and Danielle Sass have filed a complaint against Roblox in the US District Court for the Northern District of California.

Colvin and Sass have claimed as part of class action that Roblox has violated the Racketeer Influenced and Corrupt Organizations Act, and that their children have lost money in the form of the game’s currency, Robux, on third-party gambling sites.

One unit of Robux is valued at $0.0125, with the in-game currency purchasable via credit card within the virtual world’s platform. Players under 18 can use a parent or guardian’s card details to complete the transactions.

Roblox terms of service state that “experiences that include simulated gambling, including playing with virtual chips, simulated betting, or exchanging real money, Robux, or in-experience items of value” are prohibited. However, some external gambling sites accept bets made by using Robux.

This has allegedly led to Roblox illegally profiting from gambling by underage players. Colvin and Sass commented, “Children, who previously could not access the funds to participate in online gambling, now have, collectively, billions of Robux at their disposal.”

Roblox was also the subject of issues with a compliance group in California based on violating responsible advertising standards in children’s content, as well as with the Federal Trade Commission and the Truth in Advertising group.

A spokesperson with Roblox stated that the company would “continue to be vigilant” but said of the gambling sites, “These are third-party sites and have no legal affiliation to Roblox whatsoever. Bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards.”

However, when a Robux wallet is linked to a virtual casino outside the Roblox platform, Roblox can still track electronic transfers of its currency. Roblox also charges a conversion fee of 30% to turn Robux back into US dollars, which according to Colvin and Sass, generates “millions in annual cash fees” for the company.

Other defendants in the lawsuit include Satozuki Limited BV, Studs Entertainment and RBLXWild Entertainment, which have made their online gambling sites accessible to players using Robux.

Boxflip, a website operated by Studs Entertainment, also promised free Robux to people who promoted the site on TikTok.

Colvin and Sass have asked for a trial by jury and claimed they were unaware that their children were using Robux to gamble at the time.

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