Roblox sued by parents over “illegal gambling” promoted to children

Roblox is being sued by parents who claim their children were exposed to “illegal gambling” on third-party websites. Parents are blaming Roblox for the existence of these gambling sites, which they say are operating illegally and leading their children to financial losses.

Robux gambling sites, which operate on the outer limits of legality, are platforms where players can wager virtual currency (Robux) and valuable in-game items. These activities are prohibited by the Roblox Corporation, and they frequently lack transparency and accountability.

BloxFlip, RBXFlip, and RBLXWild are among the most used sites by users for illegal Robux gambling. However, these sites have gained popularity over the years due to their presence on social media platforms such as TikTok, which attracts children to unlawfully gamble Robux.

As a result, a few parents demanding protection for their children have filed a lawsuit against Roblox for failing to close down these sites.

Parents file lawsuit against Roblox over “illegal gambling”

On August 15, 2023, a law firm representing parents filed a class action lawsuit against Roblox Corporation for allegedly promoting “illegal gambling” with Robux to children. According to the lawsuit, the parents allege that Roblox permits third-party sites, namely those operated by Satozuki, Studs, and RBLXWild, to accept Robux wagers.

The suit also implies the corporation profits from the gambling sites, since Roblox tracks every Robux transaction made on and off the platform and receives a 30% share of each transaction.

Additional claims assert that “Roblox facilitates the gambling website defendants’ efforts to track bets, complete transactions, wager Robux, and satisfy wagers in their digital casinos.”

A Roblox spokesperson reached out to Dexerto and offered the following comment on the situation by saying, “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.”

They further continued, “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.”

Roblox content creators such as KreekCraft have also been included in the lawsuit by the plaintiffs, as they made players aware of the existence of such sites and warned them to be cautious. This could further prove that Roblox corporation is aware of the existence of these sites and is not taking measures to shut them down.

Simultaneously, the website RBLXWild has been shut down, as a message on the site indicates that it has been acquired by another organization called Bloxmoon, which appears shortly after the lawsuit. As of yet there has been no word from either of the accused third-party sites, future developments in the case will reveal more about the fate of those affected by these portals.