Roblox Challenges U.S. Lawsuit Over Alleged Underage Gambling
A federal court in San Francisco held a hearing on Roblox’s motion to dismiss a class-action lawsuit filed by parents who allege the platform facilitated underage gambling.
The Core Allegations
Parents claim their children used the in-game currency Robux to place bets on third-party iGaming websites. According to the lawsuit, Roblox was aware of this and profited by taking a 30% commission when Robux were converted back into real money.
The complaint also alleges that while Roblox did not run the gambling sites directly, it indirectly earned millions of dollars from the activity.
Example Sites
The court documents reference BloxFlip, a site where users could gamble using Robux. Although the site has since shut down, its operations were cited as evidence in the case.
Roblox’s Position
The company denies the allegations, arguing that it:
- did not operate any online casinos;
- did not control third-party gambling sites;
- had no agreements with gambling operators;
- did not host such projects on its platform.
Roblox’s attorneys argue that applying California’s criminal code to the company is inappropriate since it was not a direct participant in gambling activities.
The Court’s View
Judge Vince Chhabria noted that the parents’ criminal code claims “appear to be a stretch.” He emphasized that Roblox did not directly conduct gambling operations, leaving its criminal liability in doubt.
However, the judge indicated the case may proceed under allegations of unfair business practices under California’s Unfair Competition Law.
Arguments from Both Sides
| Party | Position |
|---|---|
| Parents | Roblox knew children were gambling on third-party sites, profited from transaction fees, and broke the law. |
| Roblox | The company neither operated nor partnered with gambling sites and cannot be held responsible for their activities. |
| Court | Criminal claims are questionable, but unfair business practice allegations remain valid. |
Current Status of the Case
At the hearing, the judge did not issue a final ruling on Roblox’s motion for partial dismissal. He suggested that while criminal liability is unlikely, parents may still pursue claims related to unfair business practices.
Previously, the court dismissed the RICO claims but allowed negligence-related allegations to remain under consideration.
Outlook
The judge noted that a final decision on whether “illegal conduct” claims are admissible should be made later, once more evidence is presented about Roblox’s actual role in the gambling ecosystem, but for now the case remains active as the plaintiffs push for a jury trial while Roblox continues to seek dismissal.