Parents file lawsuit against Roblox alleging illegal gambling targeting children

The lawsuit states that Roblox has violated the Racketeer Influenced and Corrupt Organisations Act, profiting illegally from minors' gambling activities.

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Roblox, an online gaming platform, is facing a class action lawsuit brought by parents Rachel Colvin and Danielle Sass who claim that the platform operates as an illegal gambling ring that preys on children.

The complaint was filed against Roblox in the US District Court for the Northern District of California.

Colvin and Sass have alleged that their children lost money, in the form of the platform's internal currency, on third-party gambling websites linked to Roblox.

The lawsuit points out that Roblox's digital currency, known as 'Robux,' holds actual monetary value, with one Robux equating to $0.0125.

While Roblox's terms of service state that simulated gambling is prohibited, Colvin and Sass claim that the platform has permitted third-party gambling sites to accept bets using Robux.

Roblox responded by emphasising its commitment to combating entities that breach its policies or endanger the platform's community safety.

Additional defendants in the lawsuit include Satozuki Limited BV, Studs Entertainment and RBLXWild Entertainment, all of which are accused of making their gambling websites available to Roblox users, many of whom are minors.

Colvin and Sass have argued that Roblox is aware of these activities due to concerns raised by social media influencers affiliated with the platform.

The lawsuit includes evidence from a social media post by a user named "KreekCraft," expressing concerns about a gambling site affiliated with Roblox being targeted at kids.

The user in the post from 2019 said: “Heard a lot about rblxflip today. For the people unaware it’s a Roblox Robux gambling site. 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.” 

The legal representatives for the plaintiffs are Weitz & Luxenberg, PC and Johnson Firm. They have requested a trial by jury.

The lawsuit, titled Colvin et al v. Roblox Corporation et al, is currently under consideration in the Northern District of California.

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