Roblox sued by parents who say it enables third-party gambling sites
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A proposed class action lawsuit is accusing Roblox of knowingly profiting off third-party websites where kids can gamble with its digital currency Robux.
Rachel Colvin and Danielle Sassfiled a complaint in the U.S. District Court for the Northern District of California, saying their kids have lost “thousands of Robux” on sites like RBLXWild.
For those not familiar with Roblox and/or RBLXWild, here’s a breakdown: Robux have to be purchased on Roblox‘s platform with real-world money. It costs around $10 for 800 Robux. Once those Robux are in a user’s account, they can be used within Roblox‘s thousands of different user-created games and digital stores to buy virtual items like cosmetics for players’ avatars.
But there are ways to use Robux off the official Roblox platform, too. RBLXWild is one of them: It pitches itself as an “exclusive ROBLOX case opening site, upgrade and battle opening website. Get profit by winning the best items of ROBLOX while having fun.”
These sites (which reportedly do not gate their content with effective age verification systems) have players wager Robux on typical casino games like blackjack, dice, and roulette. If players lose, they’re out the real-world money they used to buy Robux in the first place.
To be clear, Roblox‘s terms of service explicitly forbid “experiences that include simulated gambling, including playing with virtual chips, simulated betting, or exchanging real money, Robux, or in-experience items of value.” But those TOS are for experiences created within the Roblox platform.
The suit argues Roblox itself is responsible for off-site losses because “Roblox maintains an internal ledger or other recording system whereby it tracks both the flow and/or exchange of Robux on its platform, as well as the individuals and organizations involved in such transactions.”
Basically, even though users are gambling with Robux on third-party sites, Roblox still handles the transactions. When a user transfers their Robux into RBLXWild, Roblox is processing that transfer.
“Roblox registers each and every exchange of Robux for gambling credits and allows illicit gambling, by minors, using the Roblox website,” the suit alleges. “All of the gambling transactions require Roblox’s affirmative support to continue. Roblox profits from these transactions to the detriment of its users, including its minor, adolescent, and teenage users.”
Roblox gets a 30% cut of each Robux transaction–including those made off-platform, on gambling sites. The suit alleges Roblox‘s revenue from these transactions “amounts to millions in annual cash fees.”
The suit also alleges Roblox is aware of these sites because prominent creators like KreekCraft have tweeted about them, and Roblox
The suit asks that the court declare Roblox‘s lack of action against gambling sites illegal. It also asks for an undisclosed amount of financial restitution.
Tubefilter has reached out to Roblox for comment. We’ll update this story with any new information.
