Roblox, the renowned online video game maker behind hits like “Murder Mystery 2,” “Adopt Me,” and “Slap Battles,” is facing a lawsuit from the parents of two minors. The plaintiffs allege that Roblox is illegally facilitating child gambling.
Rachelle Colvin from California and Danielle Sass from New York filed the lawsuit against the San Mateo, Calif.-based company in San Francisco federal court last week.
The lawsuit accuses Roblox of allowing third-party gambling websites, including popular online casinos like Satozuki, Studs, and RBLXWild, to accept online bets using Robux, Roblox’s virtual currency. This, the lawsuit claims, violates Roblox’s own terms of service, which explicitly prohibit experiences involving simulated gambling or the exchange of real money, Robux, or in-experience items of value.
According to the lawsuit, most Roblox users are minors who purchase Robux using their own money, a parent’s credit card, or gift cards. The plaintiffs allege that these minors are then directed to the virtual casinos operated by the aforementioned third-party websites, which exist outside the Roblox ecosystem. Once there, users link their Robux wallets to these gambling websites, converting Robux into credits used for gambling.
The lawsuit details how these gambling credits function similarly to chips in a physical casino. Users buy in with Robux, gamble until they either lose their money or choose to cash out, and if successful, convert their credits back into Robux. This entire process allegedly occurs with Roblox’s knowledge and active support, keeping Robux within the Roblox ecosystem until cashed out for fiat currency.
A Roblox spokesperson declined to address the specific allegations due to the pending litigation. However, the spokesperson stated that bad actors are making illegal use of Roblox’s intellectual property and branding, which violates the company’s standards. Roblox has teams and processes to investigate and remove such sites, and sometimes engages with law enforcement as part of these efforts.
The spokesperson emphasized that ensuring a safe and compliant online experience for Roblox users is a core tenet of the company. Roblox remains vigilant in combating entities that violate their policies or endanger the community’s safety.
Representatives for Satozuki, Studs, and RBLXWild were not immediately available for comment.
Roblox, which operates a metaverse—a virtual space where users play games and conduct transactions—reported 65.5 million daily active users in the most recent quarter. The company aims to reach 1 billion daily users in the long term.
