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Update:
- A California federal judge trimmed a class action lawsuit claiming gaming company Roblox allowed minors to gamble using its digital currency, Robux.
- U.S. District Judge Vince Chhabria allowed claims brought under negligence and California unfair competition law to proceed and dismissed racketeering claims.
- The judge ruled a group of parents whose children made in-game purchases in Roblox sufficiently alleged the company failed to use “reasonable care” to prevent causing harm to others.
- Roblox unsuccessfully argued Robux was not an actual thing of value and thus no economic loss could result from gambling it away.
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.
(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 Johnson Firm.
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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49 thoughts onRoblox illegal gambling class action to move forward after trims
My children ages 5 to 15 play this game and there has been several males asking my 15 year old of our home address they even have unapropriate profiles with nude pictures
Please have attorney contact me. My 4 year old son rang up over $1k in Robox purchases unknowingly
Where do I sign up, boy am I the perfect witness for this lawsuit!!!
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