Roblox name appears in class action lawsuit regarding children's gambling

Date: 2023-08-17 Author: Kirill Zagoruyko Categories: EVENTS, GAMING
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Online gaming platform Roblox is the subject of a new class action lawsuit, alleging that it allowed minors to engage in illegal gambling. A legal complaint has been filed by Rachelle Colvin, as well as Danielle Sass, against Roblox Corporation, the developer of Roblox. The two plaintiffs, parents of the children, alleged that their children lost money on Roblox in the form of the platform's currency known as Robux. In their lawsuit, the parents allege that their children lost Robux due to gambling on third-party websites.

The class action lawsuit was filed in the U.S. District Court for the Northern District of California on Tuesday, August 15, 2023. In their lawsuit, Sass and Colvin allege that Roblox violated the Racketeer Influenced and Corrupt Organizations Act (RICO) by profiting from illegal gambling involving minors.

The plaintiffs allege that underage Roblox users can access their local currency, Robux, and then use it for gambling. The duo claim that the currency has a monetary value, allowing minors to use it and gamble. The terms and conditions of the platform do not allow simulated gambling. However, Saas and Colvin's class action lawsuit alleges that Roblox allows such gambling through third-party websites that are not officially affiliated with the platform.

Lawsuit Alleges Minors Participate in Third Party Illegal Gambling
In addition to Roblox Corporation, Satozuki Limited B.V., Studs Entertainment Ltd. appear as defendants in the new class action lawsuit. and RBLXWild Entertainment LLC. It claims that the aforementioned companies offer third party gambling services for Roblox users. It is important to note that the vast majority of users of the Roblox platform are minors under the age of 18.

The two parents' lawsuit alleged that Roblox did not take any action against third-party gaming sites, but rather profited from the activity. Their lawsuit alleges that the platform benefits from converting Robux to dollars, generating fees in excess of millions of dollars a year.

The legal battle is still ongoing. It remains to be determined what the outcome of the class action might be and when it will be further developed.
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