Lawsuit Targets Roblox Over Underage Internet Gambling Controversy
The developers of the popular video game Roblox should have seen this coming. Parents have gone to court against the California-based company, alleging that the widely-played online game operates like an illegal gambling platform targeting and exploiting minors.
Rachel Colvin and Danielle Sass filed a lawsuit against Roblox earlier this week in the U.S. District Court for the Northern District of California. They are seeking compensation for the monetary losses their children incurred while playing Roblox.
Colvin and Sass accuse Roblox, known for its vast virtual world with interactive users, of violating the Racketeer Influenced and Corrupt Organization Act (RICO). They also claim the company is profiting illicitly from the booming gambling industry.
The two parents have no idea that their children were engaging in the commercial space of Roblox, accessible with the in-game currency Robux. They want the case to be heard by a jury.
The Call of Gaming
Roblox has faced heavy criticism for hindering efforts to create a safer online environment for children. The issue came to a head in May when the BBB National Programs, a marketing advocacy group, claimed the company had bypassed marketing protocols meant to shield children.
It was also accused of blurring the lines between advertisements and legitimate gaming content. Additionally, Roblox was caught up in a Federal Trade Commission complaint over deceptive marketing filed by the Truth in Media group last year.
The lawsuit hinges on the use of Roblox and its Robux digital currency, which has actual value. Each Robux is valued at $0.0125 according to the lawsuit. The plaintiffs claim that underage gamers (62% of Roblox players are under 16) can make Robux purchases using parent's credit or debit cards, with no safeguards in place. Logically, then, Roblox has detailed records of all purchases and subsequent Robux transfers.
After purchasing Robux, users are allowed access to external gambling websites, not part of the Roblox ecosystem. The children can then link their Robux wallet to these gambling sites, allowing Roblox to track electronic transactions. Neither Roblox nor the gambling site requires age verification.
Satozuki Limited B.V., Studs Entertainment Ltd., and RBLXWild Entertainment LLC are also defendants in the suit. They allegedly operate third-party sites where Roblux can be used for gambling or trading.
The Lure of Gain
Besides its other allegations, the complaint suggests that the gambling platform actively encourages minors to endorse illegal gambling platforms. It states that BloxFlip, a website run by Studs, gave users on TikTok free Robux in exchange for promoting its site.
Roblox's own terms and conditions claim they do not support or indulge in any form of virtual gambling, even simulated, where virtual chips, bets, or real currency – like Robux or in-game assets – are involved.
Colvin and Sass assert these guidelines are misleading because the company has allowed third-party gambling platforms to accept actual cash for online betting activities.
Roblox reportedly has a whole team of employees whose role is to prevent Robux from being used for gambling purposes. Despite this, Roblox earns millions each year through a hefty 30% charge for converting Robux gained on the platform into real-world currency.
Roblox insists it takes the matter seriously, stating in a media response about the lawsuit that their Terms of Use and Community Standards prohibit virtual gambling. They also point out that the third-party sites are not officially affiliated with Roblox. Roblox has teams and processes in place to investigate these websites to protect their brand and platform, as well as working with law enforcement when possible. Ensuring a safe and complaint online gaming experience for users of Roblox is a top priority for the company. Roblox will continue to fight against entities that engage in practices that violate their policies and endanger the platform's users.
Roblox's Answer:
We are not commenting on the specifics of the ongoing litigation. However, Roblox's Terms of Use and Community Standards forbid any form of virtual gambling, even if it's simulated and involves virtual chips, bets, or real currency, such as Robux or in-game assets. Roblox has policies and procedures in place to combat websites that use its intellectual property and branding for illegal gambling activities and will do everything possible to remove them. Roblox does cooperate with law enforcement when necessary. The safety of the Roblox community is their top priority, and they remain dedicated to providing a secure online experience for users.
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Source: www.casino.org
