Roblox Corporation, producer of a popular online game app, is facing a class action lawsuit initiated by two California parents who claim the company’s platform is being used by several websites to peddle illegal gambling to minors.
The lawsuit alleges that the virtual currency used in the platform, called Robux, is being used for underage gambling activities on several sites. According to the plaintiffs, users under 18 years old have used their parents’ credit cards to purchase Robux, which is said to hold monetary value.
The petition emphasizes the existence of third-party gambling sites that prompt users to participate in games of chance, such as blackjack, slots, and roulette, utilizing Robux. The lawsuit identifies the gambling sites in question as Satozuki Limited B.V., Studs Entertainment Ltd., and RBLXWild Entertainment LLC.
The lawsuit specifically names RBXFlip, Bloxflip and RBLXWild as participants in “an illegal gambling operation that is preying on children nationwide.” The owners of those sites are named as defendants along with Roblox itself.
“Roblox could, of course, prohibit and/or stop the Gambling Website Defendants from utilizing the Roblox ecosystem and digital currency to facilitate illegal gambling but it does not,” the lawsuit states, accusing the company of profiting from the scheme in the millions through a 30 percent fee on transactions.
In an email to the news site TechCrunch, Roblox emphasized that the gambling sites are in no way affiliated with Roblox.
“Bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards,” the company wrote in a statement.
“Ensuring a safe and compliant online experience for users of Roblox is a core tenant of the company. Roblox will continue to be vigilant in combating entities who engage in practices that are in violation of our policies or endanger the safety of our community.”
In a subsequent email to TechCrunch, Roblox Corporate Communications Director Cris Paden pointed to its rules prohibiting “experiences that include simulated gambling, including playing with virtual chips, simulated betting, or exchanging real money, Robux, or in-experience items of value,” which the company interprets as applicable to off-Roblox uses of the platform.
