Weitz & Luxenberg attorneys have filed a class action lawsuit against Roblox Corporation for allowing minors to engage in online gambling using its platform. The lawsuit was filed because parents discovered their children were spending and losing real money when buying the platform’s digital currency.
Roblox is a popular and potentially addictive video game platform. It targets minors with “cartoonish images” in a “virtual arcade” of games. This includes casino-type gambling. Our legal complaint was filed in the U.S. District Court for the Northern District of California.
Roblox Is Violating RICO Law
The lawsuit alleges that Roblox is violating the Racketeer Influenced and Corrupt Organizations Act (RICO), as well as several other laws designed to protect consumers. Roblox is joined in this illegal gambling action by Satozuki Limited B.V., Studs Entertainment Ltd., and RBLXWild Entertainment LLC. These companies operate popular online gambling websites called RBXFlip, BloxFlip, and RBLXWild.
These businesses collectively profit by operating as an illegal gambling ring, preying upon children who play electronic games on the Roblox platform. Your child can link digital currency payments to them. This allows children to spend real money when they access “virtual casinos” on websites operated by these companies.
W&L partner and consumer protection practice group co-chair James Bilsborrow explains, “This legal case is about parents trying to protect their children. It is illegal to operate a website that allows children to wager money. These companies are essentially engaging in illegal activity and blatant negligence for the sake of profits. And taking advantage of our children when they do it.”
How Gambling with Robux Works
Roblox hosts a 3D metaverse, where users interact through the purchase of a digital currency, called Robux. This virtual currency has a real monetary value currently equal to $0.0125.
More importantly, credit cards or gift cards are accepted for the purchase of Robux by anyone 18 years of age and older. However, Roblox does nothing to verify the age of the customer.
And, because credit cards or gift cards are used, each transaction can be tracked. In this way, Roblox has knowledge of each transaction.
Using Robux Means Real Money for Roblox
Third-party websites accept online bets using Robux as currency. Minors purchase the Robux on Roblox’s platform. The children then navigate to one of the third-party websites and link their Robux wallet to the gambling websites.
Roblox tracks these electronic transfers. And charges 30% in fees when the websites convert Robux back into dollars.
This allows Roblox to make millions of dollars annually from your child’s gambling transactions. Worse yet, this can encourage children to develop an addiction to both gaming and gambling.
Gambling and Gaming Are Addictive Behaviors
Like gambling, gaming has the potential to become addictive. When the two behaviors are coupled, as they are in this case, it can be very damaging to your child.
Children’s brains are still developing. They are undergoing continual changes. Their brains have reward centers which develop faster — and are highly active — and this makes for very real danger. (1)
Evidence of Roblox’s illegal activities, along with the dangers these activities present, has been exposed on social media.
Social Media Post Provides Gambling Evidence
Some evidence cited in our lawsuit came from a 2019 social media post by “KreekCraft” — a Roblox social media celebrity.
The post said, “Heard a lot about rbxflip today. For the people unaware it’s a Roblox robux gambling site. 1. It is ILLEGAL for anyone not an adult to gamble.”
W&L attorney Mr. Bilsborrow notes, “A website marketing to kids should not be facilitating illegal gambling. The companies responsible must be held accountable. Steps must be taken to ensure this doesn’t happen to other children, ever again.”
W&L Helping Protect Children Online
It is no surprise that businesses often exist solely to make money. However, the desire to make a profit should never be placed above the health and well-being of society’s most vulnerable members, children.
Through its actions, the Roblox company has shown it does not care what it does to make a profit. It has no regard for the children who use its online platform.
Roblox is willing to take advantage of minors to make a dollar. Such businesses must be held accountable, and W&L attorneys are working to see that they are.
Has your child engaged with Roblox? Is your family a victim of unbridled corporate greed, masked as harmless online games?
Contact us to discuss joining our class action lawsuit. An initial consultation with our attorneys is free. Together, we can explore your family’s legal options.