Roblox class action claims third-party gambling, casino games target children

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Roblox class action claims third-party gambling, casino games target children
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Roblox gambling class action overview: 

Roblox Corp., Satozuki Ltd., Studs Entertainment and RBLXWild conspire to allow online gambling for minors using Robux on the Roblox app, according to a March 14 class action lawsuit.

Roblox is the largest kids entertainment website in the world, with 60 million daily active users — 70% of whom are younger than 18. Roblox claims more than 75% of children in the United States between the ages of 9 and 12 use Roblox monthly.

Satozuki, Studs and RBLXWild use the website to accept bets and allow Roblox casino games using Robux, a Roblox-exclusive monetary unit that users pay real money to receive.

“Roblox registers each and every exchange of Robux for gambling credits and allows illicit gambling, by minors, using the Roblox website,” the class action says. “All of the gambling transactions require Roblox’s affirmative support to continue. Roblox profits from these transactions to the detriment of its users, including its minor, adolescent and teenage users.”

Roblox profits from gambling, lawsuit says

Satozuki, Studs and RBLXWild take control of Robux in exchange for digital gambling credits and have underage Roblox users leave the website in order to use the Roblox casino games, the lawsuit claims.

“The gambling credits function just like chips in a brick and mortar casino,” the Roblox children gambling lawsuit says.

Roblox charges a 30% fee to transfer the Robux back into cash, meaning Roblox makes millions in annual cash fees for the Roblox casino games, the lawsuit says.

Parents in a prior Roblox gambling class action lawsuit said their lawsuit should not be dismissed because they showed a lawfully recognized injury and Roblox cannot be protected by the Communications Decency Act.

The plaintiff is represented by Michael McShane and Ling Y. Kuang of Audet and Partners LLP.

The Roblox gambling class action lawsuit is Gentry, et al. v. Roblox Corp., et al., Case No. 5:23-cv-00883, in the U.S. District Court for the Northern District of California.