Roblox must face minor gambling class action

Update: 

• A California federal judge ruled Roblox must face claims the video game developer failed to shield minors from using its platform to gamble. 
• U.S. District Judge Vince Chhabria determined the pair of mothers behind the complaint adequately alleged it was foreseeable minor users of Roblox would navigate the platform to virtual casinos where they can gamble using the digital currency, Robux.  
• Roblox will have to face claims of negligence and a request for monetary relief. 
• The judge tossed injunctive relief claims while finding the parents failed to allege the minor users are still using the Roblox platform or are likely to do so in the future.

Roblox class action overview: 

• Who: Plaintiffs Rachelle Colvin, Danielle Sass and their minor children filed a class action lawsuit against Roblox Corp., Satozuki, Studs and RBLXWild. 
• Why: The plaintiffs claim Roblox allows Satozuki, Studs and RBLXWild to operate on Roblox and allow minor users to gamble using the site’s digital currency, Robux.
• Where: The Roblox class action was filed in federal court in California.
• How to get help: If your child suffered harm as a result of Roblox addiction, you may be eligible to file or join a Roblox lawsuit.

(Aug. 22, 2023)

Plaintiffs Rachelle Colvin, Danielle Sass and their minor children filed a class action lawsuit against Roblox Corp., Satozuki, Studs and RBLXWild claiming that the companies use the Roblox platform to allow minors to gamble using the site’s digital currency, Robux.

Minors first need to have Robux within the Roblox system, which are purchased with money, a parent’s credit card or a gift card. Then, a minor can go to the defendants’ gambling website to use the virtual casino outside of Roblox, where they are allowed to gamble using Robux, according to the class action.

“Once the minor-user’s wallet is linked, the gambling website converts the minor user’s Robux into credits that can only be wagered in their virtual casinos,” the Roblox class action explains. “Throughout this process, Roblox keeps track of all of these electronic transfers and has knowledge of each transfer that occurs in its ecosystem.”

Roblox makes money by charging 30% fee to exchange Robux for cash, lawsuit claims

Minors playing the game can win and increase their Robux amount, but it’s much more likely that they lose the Robux while gambling them, the class action explains.

Roblox makes money off of the gambling by charging the gambling websites 30% to exchange the Robux back into cash, meaning the alleged Roblox minors gambling scheme is creating millions in annual cash fee payments for the company, according to the class action.

The company recently agreed to pay $10 million as part of a class action lawsuit settlement to resolve claims it took advantage of children by allowing them to make excessive purchases, then deleting any related content in a cover-up.

Have you ever seen gambling on Roblox? Let us know in the comments.

The plaintiff is represented by Devin Bolton, James Bilsborrow and Aaron Freedman of Weitz and Luxenberg PC and Christopher D. Jennings, Tyler B. Ewigleben and Winston S. Hudson of Jennings PLLC.

The Roblox class action lawsuit is Colvin, et al. v. Roblox Corp., et al., Case No. 3:23-cv-04146, in the U.S. District Court for the Northern District of California.

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