Roblox Gambling Litigation

How Do Children Use the Roblox Website to Gamble?

The Roblox gambling platform utilizes digital currency. These “Robux” come with a cash value of $0.0125. Robux are purchased with gift or credit cards. While the website says no one under the age of 18 can make credit card purchases, this is not enforced. ^{(1) (2) (3)}

Credit and gift card transactions are traceable. This means the company has knowledge of illegal Roblox gambling. ⁽⁴⁾

Roblox earns millions when online casinos exchange Robux for dollars by charging a 30% fee on the transactions. Gamers on the Roblox platform can link their Robux wallet to third-party casino websites. They then navigate to those sites and gamble. This includes children.

What Is the Roblox Class Action Allegation?

Our lawsuit alleges that Roblox and the online casinos violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, as well as state consumer protection laws. 

Under RICO, companies can be prosecuted for a “pattern of racketeering activity.” This is defined as committing two or more predicate acts in the previous 10 years. The list of predicate acts includes gambling. ⁽⁵⁾

Other consumer protection violations fall under New York’s General Business Law (GBL) and California’s Unfair Competition Law, and involve deception, conspiracy, and negligence. ⁽⁶⁾

What Parties Are Involved in the Roblox Class Action Litigation?

In our Roblox class action lawsuit, mothers Rachelle Colvin and Danielle Sass say Roblox and three co-defendants function as a gambling ring targeting minors.

Co-defendants named in the Roblox class action lawsuit are Satozuki Limited B.V., Studs Entertainment Ltd., and RBLXWild Entertainment LLC. The co-defendants operate the online casino websites RBXFlip, Bloxflip, and RBLXWild.

The complaint was filed in United States District Court for the Northern District of California by Weitz & Luxenberg attorneys on August 15, 2023. The case is Colvin et al. v. Roblox Corporation et al., N.D. Cal., No. 4:23-cv-04146.

Roblox Litigation Update

On March 26, 2024, the Court issued a ruling rejecting Roblox’s arguments to dismiss the case and allowing plaintiffs to move forward with their case and to proceed into discovery. The lawsuit is ongoing at this time.

How Are Roblox Gambling Websites Targeting Children?

Roblox, based in California, is already under fire for marketing practices aimed at minors. These practices blur the lines between what is content and what is an advertisement. ^{(8) (9)}

The Roblox class action lawsuit notes Roblox’s “deceptive commercial advertising and addictive content.”  Some of the deceptive advertisements may appear in ways especially attractive to minors. This includes animation and other graphics that are similar to cartoons. ⁽¹⁰⁾

The company pays social media influencers to advertise and promote their websites to children. Evidence offered in the complaint involves “KreekCraft” who posted to social media, “Heard a lot about rbxflip today. For the people unaware it’s a Roblox robux gambling site. 1. It is ILLEGAL for anyone not an adult to gamble. 2. Don’t use it. You’ll be banned.” The complaint explains, “Roblox frequently interacts with “KreekCraft” on social media and monitors his Twitter account.” ^{(11) (12)}

How Can You Participate in the Roblox Child Gambling Class Action Lawsuit?

You may be able to join our lawsuit if you are the parent of a child who purchased Robux digital currency and your child spent the Robux on one of these gambling websites: 

• RBXFlip.
• Bloxflip.
• RBLXWild.
• BLOXmoon.

The Robux could have been bought using credit cards or gift cards.

What Damages Have Resulted from the Illicit Gambling Ring Involving Roblox?

Victims lost considerable amounts of money on the Roblox platform and the linked gambling websites. Often, the money was lost without parents knowing about it.

However, perhaps the real danger lies in how these sites encourage early onset addictive behaviors in children. 

One study notes, “there are multiple novel practices in gaming that incorporate elements of gambling. All of them are linked to problem gambling.” ⁽¹³⁾

The Roblox Gambling Litigation Process

In a class action lawsuit, first a legal complaint is filed. Then the “class” must be certified by the court. Next, members of the class must be notified. They must be allowed time to opt out of the lawsuit or decide they want to participate in the lawsuit. After that, your attorneys may negotiate a settlement or go to trial with the case in court.

The Weitz & Luxenberg consumer protection attorneys representing our clients in this Roblox lawsuit include James Bilsborrow, Devin Bolton, and Aaron Freedman.

Mr. Bilsborrow, W&L partner and practice group co-chair, has a long-standing interest in product liability and emerging technologies. He emphasizes, “Protecting our children from being preyed upon by irresponsible online companies is a fight worth waging. W&L is ready for that fight.”

Victims of Roblox gambling could benefit from receiving any monetary compensation they deserve. More importantly, they can help safeguard other families — notably their children — from injury at the hands of the online gaming industry.

How W&L Helps Protect Children Who Go Online

W&L takes society’s obligation to protect children seriously. We encourage all victims to come forward. Join us in fighting to put a stop to unlawful practices. 

Any company’s attempt to make money by tricking your children needs to be stopped. And violation of the law deserves to be punished. Our goal is to protect our most vulnerable members, particularly children. 

We have also filed lawsuits against other organizations harming younger members of our society online, including for cases of social media addiction.

The Roblox company puts profits first, regardless of who it hurts. It tricks children using its online platform. Our W&L attorneys are working to hold Roblox accountable for taking advantage of them. 

If your child has engaged online with Roblox, let us help you. Contact us for a free initial consultation. We can explore your family’s legal options if you are affected by online addictive gambling games pretending to be harmless.