Roblox Denies Underage Gambling Allegations in Lawsuit

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Roblox has responded to a class-action lawsuit accusing it of facilitating underage gambling through unauthorised third-party websites.

Roblox Faces Legal Accusations Over Unauthorised Third-Party Sites
Roblox has responded to a class-action lawsuit accusing it of facilitating underage gambling through unauthorised third-party websites. Filed on behalf of minors, the lawsuit alleges that websites such as RBXFlip, Bloxflip, and RBLXWild exploit Roblox’s virtual currency, Robux, for gambling activities.

The plaintiffs argue that Roblox indirectly profits by selling Robux, knowing that the currency might be used on these external sites. These platforms allegedly allow users to wager Robux in games of chance, risking losses or winning virtual items.

Roblox Denies Responsibility
Roblox has categorically refuted the claims, describing them as legally and factually baseless. The company asserts that the activities in question occurred outside its platform, violating its terms of service.

In its defence, Roblox emphasises that it actively combats unauthorised use of its platform. Since 2019, the company has implemented technological safeguards and issued cease-and-desist letters to operators of gambling sites. Most recently, Roblox sent a legal demand to Bloxflip, ordering it to cease operations involving Roblox branding and access.

Legal Protections and Challenges
Roblox’s defence hinges on Section 230 of the Communications Decency Act, which protects platforms from liability for third-party content. The company argues that it cannot be held responsible for actions on external sites.

Additionally, Roblox maintains that users must leave its platform to engage with these third-party sites, an act that violates its terms prohibiting the exchange of Robux outside its ecosystem. Roblox also asserts that Robux is a virtual currency without real-world value, further distancing itself from liability.

Broader Implications
Legal experts note that the case could have far-reaching consequences for platforms managing virtual economies. A ruling against Roblox could lead to stricter regulations for online platforms, especially those catering to minors.

Despite its strong legal stance, Roblox acknowledges the challenges of monitoring a platform with over 79.5 million daily active users, nearly half of whom are under 18. The lawsuit underscores the tension between Roblox’s efforts to protect its users and the persistent attempts by third-party sites to exploit its platform.

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