Roblox is once more back in the headlines for all of the wrong reasons, as the company that runs the player-generated games platform is facing a class action lawsuit from parents that accuses it of being willfully ignorant of and profiting from an “illegal gambling ring” being used by minors.
The crux of the filing focuses on players being able to link wallets full of Robux cash shop currency to third-party gambling websites, all of which is purportedly tracked and allowed by Roblox despite the fact that the game’s TOS disallows “experiences that include simulated gambling.” The suit also claims the company is making “millions in annual cash fees” through the 30% fee it requires to convert Robux into cash.
“Children, who previously could not access the funds to participate in online gambling, now have, collectively, billions of Robux at their disposal,” the lawsuit argues.
A statement from Roblox Corp leans into how third-party gambling sites violate Roblox’s TOS and claims it will “continue to be vigilant” against such sites. “These are third-party sites and have no legal affiliation to Roblox whatsoever,” it reads. “Bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards.”
Readers may remember that Roblox isn’t historically moved to swift action in terms of its oversight, as it took the company a year to react to an FTC complaint and reportedly isn’t very good at filtering content for minors – all as it aims to be “one of the biggest virtual economies on Earth.” The lawsuit also strikes similar notes to legal drama that erupted around skin gambling rings that sprung up around CS:GO, which has been a complaint with the game for around seven years now.