October 19, 2023 at 12:05 pm

Lawsuit Alleges Roblox Allows Children To Essentially Gamble Online

by Trisha Leigh

Source: iStock

Parents everywhere know that Roblox is well-loved, but also that there are plenty of problems to mitigate if your kids like playing the online game.

This lawsuit alleges that one of them is that the game’s currency allows kids to gamble online.

It states that Roblox is profiting from the operation of illegal gambling aimed at children by essentially tuning a blind eye.

Source: iStock

Their digital in-game currency, Robux, can be wagered and lost by kids at online casinos. The casinos operate off-site but use Robux as gambling chips.

Users buy Robux on the Roblox website, then go to the casino websites and link their Roblox wallet.

The lawsuit says that since Roblox knows exactly what’s happening, since they “register each and every exchange of Robux for gambling credits and allows illicit gambling, by minors, using the Roblox website.”

They als “keep track of all of these electronic transfers and has knowledge of each transfer that occurs in its ecosystem.”

Of course, it all comes back to real world money, as Roblox profits off the arrangement to the tune of a 30% commission.

“As a result of the illegal gambling enterprise, Roblox has made substantial revenue via its transaction fees…to the tune of tens of millions of dollars, seeking to turn its minor customers’ gambling struggles into revenue.”

Source: Instagram

In 2020, over half of kids under 16 were playing Roblox, and their business model is sustained by the sale of Robux.

Even though the online casinos named in the suit claim no one under the age of 18 is allowed to use their website, they also have no hard age verification features that would stop a child from doing so.

At least one of the online casinos also pays influencers with young audiences to promote their site.

Kids 13 and up sign up for Roblox without help from a parent.

Roblox’s official statement is that they do not allow “simulated gambling, including playing with virtual chips, simulated betting, or exchanging real money, Robux, or in-experience items of value” on their site.

Source: iStock

They also say they’re aware of – and looking to prosecute – the casinos and others violating their terms of service.

“Bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards … without question, we definitely view these websites are in violation of our Terms of Service and Community Standards, and we are indeed pursuing these types of websites in terms of enforcement.”

We’ll see if that’s good enough to satisfy the lawsuit.

Probably not.