August 17, 2023 2 min read

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Roblox Named in Class-Action Lawsuit Involving Child Gambling

Allegations against the company claim that its virtual currency has a monetary value and was used by minors for gambling via third-party websites

Online game platform Roblox is subject to a new class action lawsuit, alleging it enabled minors to participate in illegal gambling activities. A legal complaint was filed by Rachelle Colvin, as well as Danielle Sass, against Roblox Corporation, the developer of Roblox. The two plaintiffs, parents of children, claimed that their kids lost money on Roblox in the form of the platform’s currency known as Robux. In their lawsuit, the parents allege that their children lost Robux by gambling via third-party websites.

The class action lawsuit was filed with the US District Court for the Northern District of California on Tuesday, August 15, 2023. In their lawsuit, Sass and Colvin claim that Roblox breached the Racketeer Influenced and Corrupt Organizations (RICO) Act by benefitting from illegal gambling activities that included the participation of underage individuals.

The plaintiffs allege that minors on Roblox can access its local currency Robux and then use it for gambling. The duo claims that currency has a monetary value, which enables minors to use it and gamble. The terms and conditions of the platform do not allow forms of simulated gambling. However, Saas and Colvin’s class action lawsuit claims that Roblox enables such gambling via third-party websites that are not officially associated with the platform.

The Lawsuit Alleges Minors Engage in Third-Party Illegal Gambling

Besides Roblox Corporation, the new class action lawsuit lists as defendants Satozuki Limited B.V., Studs Entertainment Ltd. and RBLXWild Entertainment LLC. It claims that the aforementioned companies offer third-party gambling services for Roblox users. It’s important to mention that an overwhelming majority of the Roblox platform users are minors under the age of 18.

The two parents’ lawsuit claimed that Roblox hasn’t taken action against the third-party gambling websites but rather benefits from those activities. Their lawsuit alleges that the platform benefits from the conversion of Robux to dollars, which brings proceeds in the form of fees surpassing millions of dollars annually.

The legal battle is still ongoing. It is yet to be determined what the result of the class action lawsuit may be and when it will get further traction.

Journalist

Jerome is a welcome new addition to the Gambling News team, bringing years of journalistic experience within the iGaming sector. His interest in the industry begun after he graduated from college where he played in regular local poker tournaments which eventually lead to exposure towards the growing popularity of online poker and casino rooms. Jerome now puts all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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