US Court Rejects Parents’ Lawsuit Against Roblox Over Children’s Gambling
Federal Judge Vince Chhabria dismissed a class-action lawsuit filed by parents against Roblox.
Parents’ Lawsuit Claims
The plaintiffs accused the platform of profiting from children’s gambling through third-party iGaming operators that accepted bets using the in-game currency Robux. When the currency was converted back to dollars, Roblox received a 30% commission.
The parents filed the lawsuit in August 2023, claiming their children lost money using Robux on third-party online casino sites. They alleged that the company was aware of the betting and profited from it.
Court’s Decision
Judge Chhabria dismissed the claims under six statutes cited by the plaintiffs, ruling that Roblox did not actively facilitate the operators’ gambling activities. He noted that:
- One law applies only to organizations that take active steps to promote gambling.
- Other laws concern physical devices, such as slot machines, rather than online casinos.
The judge compared the company’s actions to hotel owners who are aware of illegal poker in a guest’s room but do not intervene.
Claims Reviewed
| Type of Claim | Court Ruling |
|---|---|
| Unfair Competition | Dismissed |
| Negligence | Recognized, but limited |
| Violations of Illegal Gambling Laws | Dismissed |
| Fraud Claims | Dismissed |
| Requests for Injunctive Relief | Denied due to lack of harm |
Next Steps and Comments
Roblox filed a motion to dismiss the second amended complaint, arguing that the plaintiffs failed to prove the company’s liability. According to Roblox representatives, the company neither owns nor operates third-party operators and has attempted to stop violations.