A class action lawsuit has been filed against popular children’s game Roblox in the U.S. District Court for the Northern District of California, alleging that the platform is preying on minors and facilitating child gambling on its platform in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO).
The complaint states that children have been directed to third-party apps featuring blackjack, roulette, slots, and other forms of gambling using Robux, the game’s virtual currency.
Rachel Colvin and Danielle Sass, the mothers who have filed a lawsuit, allege that their children have been utilizing gambling sites that employ Roblox currency.
Bloomberg reports that while Roblox could halt this “illegal gambling ring,” Colvin and Sass argued that it’s “significantly enriched” by the scheme.
Roblox charges a 30 percent fee to convert Robux back into US dollars, making them “millions in annual cash fees.”
“The complaint also says the gambling sites encourage minors to promote its illegal gambling platform, alleging that the website Bloxflip, operated by Studs, offered free Robux to users who promoted the site on TikTok,” the report states. “Roblox can’t credibly claim it’s unaware of these websites because numerous social media influencers affiliated with the gaming platform have gone public with their concerns, the lawsuit says. Colvin and Sass included a screenshot of a post on X, formerly known as Twitter, by the user ‘KreekCraft,’ who Roblox has responded to on the social media site.”
“Heard a lot about rblxflip today. For the people unaware it’s a Roblox robux gambling site,” the user said in the post from 2019. “1. It is ILLEGAL for anyone not an adult to gamble. Being this site is marketed towards Roblox, ie KIDS, I wouldn’t be surprised if it got shut down.”
Roblox has denied any wrongdoing.
“These are third-party sites and have no legal affiliation to Roblox whatsoever,” Roblox said in a statement to Bloomberg Law. “Bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards.”