Roblox sued by parents who say it enables third-party gambling sites

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 Sass filed 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.”

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 follows those creators on Twitter.

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.

A spokesperson for Roblox tells Tubefilter the platform “can’t address the specific allegations of the lawsuit, given the pending litigation.”

They added:

“However, with regards to the types of online websites in question, our Terms of Use and Community Standards specifically prohibit our users from the use of sites like those mentioned. Furthermore, these are third-party sites and have no legal affiliation to Roblox. Bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards. Roblox has teams and processes in place to investigate these types of websites to protect our brand and platform, including, where possible, having the websites removed. In some cases, we engage with law enforcement as part of our efforts. 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.”