Lawsuit filed in California court claims Roblox facilitates child gambling

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Class action lawsuit claims Roblox facilitates child gambling

The lawsuit filed against the company in Northern California District court alleges that some kids have had backdoor access to funds on gambling sites when using the application. KTVU's Tori Gaines reports.

A class action lawsuit has been brought against Roblox, one of the newest giants in the virtual game space. The suit claims the gaming company does not do enough to keep children away from gambling websites that can connect to the application. 


Roblox is one of the fastest-growing gaming platforms in the world, and it's designed to bring users together in a virtual universe or "metaverse." The lawsuit filed against the company in Northern California District court alleges that some kids have had backdoor access to funds on gambling sites when using the application. 

According to its community standards, Roblox doesn't allow gambling on its site.  

"Experiences that include simulated gambling, including playing with virtual chips, simulated betting, or exchanging real money, Robux, or in-experience items of value are not allowed," the community standards read

However, the lawsuit alleges that Roblox allows third-party gambling websites to use its website for online bets using Robux.


"This is not a new problem unfortunately, we've seen over the years a number of concerns around the over commericialization of platforms like Roblox," says Natalia Garcia with Common Sense media. 

Here's how it works:

First, a user must purchase Robux, the currency used within the Roblox virtual world. Then the user heads to one of the virtual casinos that exist outside of the Roblox world.  Next the user links their Robux wallet to the gambling website. At this time, the Robux credits can be converted into credits for the gambling site. When users lose, which attorneys argue happens often, Roblox can charge a 30% fee to the gambling site to convert the credits into cash.

Attorneys say because Roblox tracks every single exchange of Robux on its application, the company must be aware that users are gambling.

Medical experts say there are many safety issues in metaverses like this beyond gambling. 


"The levels of harm and types of harm are many, but the first thing to think about is that they are addictive. They are so reinforcing that with repeated exposure they essentially change our brains," Dr. Anna Lembke, Professor of Psychiatry at Stanford tells KTVU. 

Another issue is that many of these games are designed to encourage users to maximize their time spent in the virtual worlds. 

"Most companies are really concerned with user engagement and time spent on apps... and therefore tend to design their products to keep kids on the app," Natalia Garcia with Common Sense Media tells KTVU. Common Sense Media is a nonprofit organization that reviews and rates applications based on their suitability for children. 

Doctors also say that digital devices in and of themselves are addicting. 
"We get in a state of craving where we need ever more potent forms in greater quantities not ot feel good or to feel pleasure,but just to stop feeling bad from withdrawal from the last time that we used," Lembke says. 

However, Lembke says gambling can be also extremely addicting. 

"So it shouldn't be possible then for kids in an online virtual medium to have access to gambling, because we know gambling is potentially really harmful, especially for kids whose brains are still developing," she tells KTVU. 

One way to ensure your child's safety online is through strict supervision, and Lembke argues that children under the age of 13 should not have any unsupervised access to the internet. She also argues that it's not just parents who should shoulder this responsibility.


"I don't think it's fair to make parents entirely responsible, I think that the corporations that make these virtual spaces for kids have to create boundaries and guardrails," Lembke said. 

Roblox shared a statement with KTVU on the lawsuit: 

"While we do not comment on pending litigation, Roblox’s Terms of Use and Community Standards prohibits use of sites like those mentioned. These are third-party sites and have no legal affiliation to Roblox. Bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards. Roblox has teams and processes in place to investigate these types of websites to protect our brand and platform, including, where possible, having the websites removed. In some cases, we engage with law enforcement as part of our efforts. Ensuring a safe and compliant online experience for users of Roblox is a core tenant of the company. Roblox will continue to be vigilant in combating entities who engage in practices that are in violation of our policies or endanger the safety of our community." - Roblox Spokesperson 

Common Sense Media, a nonprofit which reviews games for child suitability, advises that only children over the age of 13 be allowed on Roblox. For more details on their findings on Roblox, please visit the Parents' Ultimate Guide to Roblox