Summary:
- The lawsuit was filed in California.
- Two parents allege Roblox participated in unlawful child gambling.
- Roblox has a prohibition on gambling.
Online gaming platforms are increasingly popular among all demographics.
From the young and old, players have access to gaming options that provide unique forms of entertainment. When it comes to minors, operators must work hard when it comes to complying with rules and regulations, particularly in regards to online gambling.
Just recently, the gaming platform, Roblox, was hit with a class action lawsuit after parents accused the brand of unlawful gambling services for minors.
Details of the Lawsuit
A class action suit was filed in the Northern District of California by two parents who say that Roblox engaged in unlawful gambling toward children. The filing states that the digital currency offered by Roblox known as Robux can be used for gambling activities. The site is supposed to have a ban on such activity and not allow any type of gambling to take place.
Users under 18 can use Robux purchased from a parent’s bank account or credit card, and the Robux has a real value. The lawsuit says that third-party gambling sites allow players to use Robux to play games like roulette and slots. Such gambling sites named in the suit include Studs Entertainment Ltd, Satozuki Limited B.V. and RBLXWild Entertainment LLC.
Danielle Sass and Racheal Colvin filed the lawsuit. They have children who reportedly gambled on these platforms as they were connected to Robux. The parents say the minors have unknowingly lost thousands of the online currency while playing gambling games at the sites.
How Roblox Benefited
The lawsuit claims that Roblox benefited from the scheme as the company collects a 30% fee from the Robux conversion into real money. The company is said to earn millions in revenue from the fees paid from money conversion.
The gambling sites are alleged to entice the younger players by providing incentives like free Robux. Platforms like TikTok are used to promote the gambling option. Roblox claims that the third-party gambling sites operate independently and are not affiliated with the company. They are infringing on the branding and intellectual property of Roblox.
The company says it is committed to being watchful to keep the gaming platform and follow all policies. It seems that Roblox may decide to file a lawsuit against the third party providers to fight this recent allegation. It will be interesting to see how the case evolves and if the mega- children’s gaming platform will be affected negatively in the long run.
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