Roblox is facing a class action lawsuit after being accused of enabling child gambling, sparking a heated legal battle. The company has vehemently denied the allegations and is seeking the dismissal of the lawsuit.
The controversy stems from parents’ concerns that Roblox’s in-game currency, Robux, can be used on third-party casino websites, exposing young players to gambling content. The plaintiffs, Rachel Colvin and Danielle Sass, claim that their children used Robux on these websites and suffered financial losses. They also accuse Roblox of profiting from child gambling by charging a 30% fee when gambling websites convert funds into dollars.
US District Judge Vince Chhabria acknowledged that Roblox may be knowingly exchanging cash for Robux with third-party casino companies. However, he noted that the complaint is vague on how often children engage in gambling. While he expressed doubts about Roblox’s awareness of the casino websites, he also emphasized the need for further evidence to support the claims.
Roblox’s attorney, Tiana Demas, argued that the plaintiffs failed to prove many of their claims, including Roblox’s awareness of the gambling transactions. She also contended that the casino websites in question are no different from other developers working with Roblox and that the company does not control independent developers.
Despite Demas’s arguments, Judge Chhabria highlighted Roblox’s responsibility to prevent such cases, particularly given the age of the customers involved. He expressed inclination to let the negligence claim proceed, believing that Roblox should be held accountable for the losses children suffered. While he acknowledged the plaintiffs’ failure to fully meet the requirement to argue about the company’s negligence, he underscored the need for Roblox to take action to prevent underage gambling.
The case is awaiting a ruling, with a decision expected in the near future. This legal battle has thrust Roblox into the spotlight as it grapples with accusations of facilitating child gambling and seeks to defend its actions in court.