Roblox Among Platforms Targeted in NY Gov. Hochul’s Legislative Package
New York Gov. Kathy Hochul announced Monday a legislative package aimed at gaming platforms that allow minors to spend money without parental oversight. The proposal includes mandatory parental controls on financial transactions and age-verification requirements for platforms that enable in-game purchases.
Hochul proposes transaction controls and age verification for platforms like Roblox, arguing lootbox-style features “entice kids to gamble their parents’ money on virtual junk.”
Speaking at Hamburg High School in Erie County, Hochul criticized gambling-like mechanics embedded in some games.
“… in certain games, there’s features that entice kids to gamble their parents’ money,” Hochul said.
NY AG Letitia James Calls Out Roblox
Under the proposal, platforms would be required to offer transaction restrictions for users under 18, allowing parents to set spending limits and approve purchases before they are processed.
The legislation references platforms such as Roblox, which has a large base of users under 16 and operates a virtual currency system, Robux, used to purchase in-game items and upgrades. Roblox is dealing with a class action lawsuit for offering games that too closely resemble gambling.
New York Attorney General Letitia James voiced support for the proposals, singling out Roblox in a statement.
“Online platforms like Roblox are enabling unsafe environments for children, including allowing predators to send explicit messages to children,” James said Monday.
Hochul framed the financial controls as a safeguard against unauthorized charges.
“I don’t even know if parents know this is going on,” she said. “They know your credit card number. It’s being used. How is that possible?”
Privacy On Autopilot
The broader legislative package requires social media companies, gaming platforms, and messaging apps to default users under 18 to maximum privacy settings. Platforms would be barred from allowing non-connected users to message minors, view their profiles, or tag them in content.
The transaction rules would apply to any platform allowing users under 18 to make purchases and would also disable certain generative AI and predictive chat features on children’s accounts. Location sharing would be disabled by default for users under 18.
State officials said the measures are partly aimed at curbing risks tied to AI companion features, citing documented cases in which such tools interacted with children during vulnerable moments.
“Under our proposals, we’re removing that burden from parents and placing the responsibility where it belongs: on the shoulders of the app companies and platforms themselves,” Hochul said.
The proposal builds on legislation introduced by NY State Senator Andrew Gounardes and Rep. Nily Rozic, both Democrats, including the Stop Online Predators Act (S4609/A6549), previously known as the New York Children’s Online Safety Act. The bill would require commercially viable age verification and would restrict open chat functions for children’s accounts by default.
Phone Ban Shows Early Results
The proposals follow early results from New York’s statewide bell-to-bell ban on smartphones in K-12 schools, implemented in September at the start of the 2024-2025 school year. In a survey of more than 350 school administrators released in December, 92% reported a smooth transition to the phone-free policy.
Additionally, 83% of respondents said they’re seeing more positive classrooms and better student engagement. The smartphone ban was accompanied by $13.5 million in state funding to help schools buy storage equipment (lockers, lockboxes, specialized pouches) for the devices.
Hochul also announced plans to expand Teen Mental Health First Aid training to all 10th graders across New York State. Once fully rolled out, the program would reach more than 180,000 students each year.
Building on 2024 Legislation
Gounardes and Rozic previously sponsored the SAFE for Kids Act and the New York Child Data Protection Act, both signed into law by Gov. Hochul in June 2024. The Child Data Protection Act took effect in September 2025, restricting the collection, use, or sale of personal data belonging to users under 18 without informed consent.
The law authorizes the attorney general’s office to pursue civil penalties of up to $5,000 per violation. Hochul also signed legislation requiring social media platforms to display surgeon general-style warning labels about mental health risks.
Major platform operators, including Meta, TikTok, and several gaming companies, have not publicly commented on New York’s proposals. The legislative package is expected to be introduced when the state legislature reconvenes, adding to a growing list of state efforts aimed at fixing how online platforms interact with younger users.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.