Roblox Faces Class-Action Lawsuit Over Alleged Online Gambling for Kids
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Roblox, a popular gaming platform with over 65 million active users, is now facing a class-action lawsuit filed by parents who accuse the company of getting children involved in online gambling and profiting from it. The lawsuit was filed in federal court in the Northern District of California by Rachel Colvin and Danielle Sass, claiming that Roblox violates the Racketeer Influenced and Corrupt Organizations Act.
The parents argue that Roblox allows users, including children, to use real-world cash to purchase in-game currency (Robux) that can then be used for gambling on virtual items. They claim that although Roblox officially prohibits gambling and other illicit activities, the company is complicit by allowing funds to be transferred to gambling websites through the Robux wallet, for which Roblox earns a commission.
The lawsuit names several online gambling sites as defendants alongside Roblox. It alleges that these sites operate in collaboration with Roblox, facilitating the exchange of Robux for gambling credits on the platform. Once a user’s credits are exhausted, the gambling websites cash out the acquired Robux and provide Roblox with a transaction fee.
Roblox has stated that these gambling sites are third-party entities and have no legal affiliation with the company. It claims that bad actors exploit Roblox’s intellectual property and branding without its consent. Roblox emphasizes its commitment to safeguarding its community and taking action against those who violate its policies or jeopardize user safety.
In recent efforts to expand its user base, Roblox has introduced games and features targeted at more mature audiences. However, despite attracting new players, the company’s market value has declined by 40% in the past year.
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