Roblox Gambling Lawsuit

Launched in 2006, Roblox is one of the world’s most popular gaming platforms. It allows players to create and publish games through Roblox Studio. It has tens of millions of daily players, mostly minors, worldwide. At the peak of its popularity, more than half of American children played Roblox regularly. While popular, the platform has received a lot of criticism, including allegations of financial exploitation of minors. Roblox is now facing a major class action lawsuit, which accuses the platform of facilitating and promoting illegal gambling for minors. Roblox does not offer gambling on its platform. However, the lawsuit alleges that Roblox pushed minors to third-party gambling websites that use Robux (Roblox’s in-game currency) for gambling games. The suit also alleges that Roblox profited from commissions on transaction fees of that gambling activity.

Details of the 2023 Roblox lawsuit emerged via a Bloomberg Law report in mid-August. The report cited the proposed class action lawsuit against Roblox Corporation and the third-party gambling websites that profited from the transactions. No state permits minors to gamble, and gambling is explicitly listed as prohibited in Roblox’s terms and conditions. However, the lawsuit alleges that there was a workaround, with Roblox facilitating the gambling. It did this, claims the suit, by allowing these third parties – Satozuki Limited B.V., Studs Entertainment Ltd., and RBLXWild Entertainment LLC have been listed as co-defendants in the class action – to access the Roblox platform, attracting children to use Robux currency to play casino games. Roblox is said to make 30% on fees when these entities cash in or cash out on these third-party gambling websites. As the class action gathered pace through the early fall of 2023, Roblox tried to dismiss the suit, arguing that it should not be held responsible for the actions of third parties, i.e., the Robux gambling platforms.

The operator of RBLXWild was named as a co-defendant in the 2023 Roblox gambling class action lawsuit. The website has recently been acquired by Bloxmoon, but it was formerly owned and operated by RBLXWild Entertainment LLC.

Owned and operated by Studs Entertainment LTD, BLOXFlip was named as a co-defendant in the Roblox gambling lawsuits. The platform is still active, offering various gambling activities involving Robux currency. For those blocked from the website due to geo-restrictions, BLOXFlip currently encourages the use of VPNs.

Owned by Satozuki Limited BV, RBXFlip is no longer active. Its Twitter/X account has also been suspended. The platform has been offline since late July 2023. Satozuki Limited has been named as a co-defendant in the 2023 Roblox gambling lawsuits.

Blooxmoon, which acquired RBLXWild, is one of the most well-known Roblox gambling platforms. The website unashamedly promotes itself as offering “Premium Roblox Gambling.” Players can use their Roblox credentials to access Bloxmoon.

The 2023 Roblox class action case was initiated by two parents in California, both of whom claim their children gambled on third-party websites facilitated by Roblox. Robux, the digital currency used on the gambling platforms mentioned above, can be cashed in for real USD on the Roblox platform. So, while Roblox maintains that it does not allow gambling, it is the endpoint for facilitating the transactions from the third-party gambling sites. The class action lawsuit points to the fact that Roblox is responsible for the issuance and flow of Robux and, thus, is ultimately accountable for children using those digital tokens on gambling websites. It is worth reiterating that Roblox is broadly aimed at children. At one point in 2020, Roblox claimed that two-thirds of US children between the ages of nine and twelve played on the platform.

The current Roblox Class Action Lawsuit invites the parents or guardians who believe their child may have acquired Robux digital currency through Roblox and gambled, ultimately losing money, on the websites BLOXFlip, RBXFlip, RBLXWild, or Bloxmoon to join the suit. The lead plaintiffs of the class action claim their children lost thousands of Robux on the gambling websites, but anyone can join the class action regardless of the USD equivalent amounts lost through illegal gambling. It’s worth noting that Roblox has settled class action lawsuits before, including a $10 million settlement for a content deletion scheme. If you believe your child has been coerced into illegal gambling by Roblox or the gambling websites mentioned, then you may be eligible to pursue compensation through the Roblox gambling class action.

What is the Roblox gambling scandal?

Roblox has been accused of facilitating illegal gambling for minors. The case involves third-party gambling websites that use the Roblox in-game currency, Robux.

Did Roblox get sued for gambling?

Yes. Roblox is facing a class-action lawsuit accusing it of facilitating illegal gambling for children. Roblox Entertainment is named as a co-defendant alongside three gambling websites, BLOXFlip, RBXFlip, and RBLXWild.

Is gambling allowed in Roblox?

No. The Roblox lawsuit involves third-party websites that use Robux digital currency. However, Roblox has been accused of profiting from gambling by taking a percentage of the transactions when the website operators cash in or cash out their Robux currency for US Dollars.

Is Robux gambling illegal?

It’s a complex issue. First of all, it is illegal for minors to gamble in any US state. The websites named in the lawsuit do not hold traditional casino licenses and are unregulated, operating in legal gray areas. Some of the platforms are accessed using VPNs, which can hide a user’s location.

Has Roblox ever scammed?

Roblox has been involved in different lawsuits through the years where its actions have been called into question, particularly its attitude toward the protection of minors. This includes multi-million-dollar lawsuits where Roblox has been forced to settle.

Is Rblxwild safe?

We wouldn’t recommend playing at RBLXWild or similar websites. These platforms are unlicensed and unregulated by US authorities. All the websites named in this article have been thought to be involved in scams in the past.

Is Bloxflip safe?

BLOXFlip and other similar websites, including those mentioned in this article, are not licensed nor regulated by US authorities. Therefore, we do not recommend playing at BLOXFlip. Additionally, please keep in mind that all the platforms identified in this article have been accused of running scams.

Is Bloxmoon safe?

We do not recommend playing at Bloxmoon. Bloxmoon as well as related websites do not benefit from regulatory oversight by the United States or other recognized authorities. In fact, all of the platforms discussed here are unlicensed by US authorities and have, previously, been charged with perpetrating scams.

What happened to Rbxflip?

RBXFlip was acquired by Bloxmoon, a Robux gambling website that is still active today.