Popular Kid’s Game Roblox Being Sued for Allegedly Preying on Children, Facilitating Child Gambling in Violation of RICO

The popular kid’s game Roblox is being sued for allegedly preying on children and facilitating child gambling on the platform.

The gaming platform is accused of violating the Racketeer Influenced and Corrupt Organizations Act [RICO].

The class action lawsuit in the U.S. District Court for the Northern District of California claims that the game has directed children to third-party apps featuring blackjack, roulette, slots, and other gambling using Robux, Roblox’s in-game currency.

The mothers who filed the lawsuit, Rachel Colvin and Danielle Sass, allege that their children have used the gambling sites that used the Roblox currency.

“Children, who previously could not access the funds to participate in online gambling, now have, collectively, billions of Robux at their disposal,” Colvin and Sass said, according to a report from Bloomberg Law.

Bloomberg reports that while Roblox could halt this “illegal gambling ring,” Colvin and Sass argued that it’s “significantly enriched” by the scheme. Roblox charges a 30 percent fee to convert Robux back into US dollars, making them “millions in annual cash fees.”

“The complaint also says the gambling sites encourage minors to promote its illegal gambling platform, alleging that the website Bloxflip, operated by Studs, offered free Robux to users who promoted the site on TikTok,” the report states. “Roblox can’t credibly claim it’s unaware of these websites because numerous social media influencers affiliated with the gaming platform have gone public with their concerns, the lawsuit says. Colvin and Sass included a screenshot of a post on X, formerly known as Twitter, by the user ‘KreekCraft,’ who Roblox has responded to on the social media site.”

“Heard a lot about rblxflip today. For the people unaware it’s a Roblox robux gambling site,” the user said in the post from 2019. “1. It is ILLEGAL for anyone not an adult to gamble. Being this site is marketed towards Roblox, ie KIDS, I wouldn’t be surprised if it got shut down.”

Roblox has denied any wrongdoing.

“These are third-party sites and have no legal affiliation to Roblox whatsoever,” Roblox said in a statement to Bloomberg Law. “Bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards.”

Roblox added that they will “continue to be vigilant” in combating entities that engage in practices that violate policies or “endanger the safety” of the platform’s community.

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