California judge says Roblox gambling lawsuit is a go

Online gaming platform Roblox will have to defend itself in court after another judge said that the illegal gambling charges against it may proceed in court

Roblox has been attacked legally with the gaming platform coming under threat of a lawsuit now that a federal judge in California allowed the illegal gambling allegations against the company to proceed. Roblox stands accused of facilitating an illegal gambling ring that preys on children.

However, not all of the allegations levelled against the gambling have held to the scrutiny of the court, and the RICO charges against the company were dismissed as bogus. This gives Roblox a fighting chance to defend its name and reputation, although the process is likely to be costly. Roblox insisted that the case should not have proceeded based on the Communications Decency Act, but the line cited, Section 230, doesn’t apply in this case.

The complaint was lodged by Richelle Colvin and Danielle Sass who alleges that Roblox was used to facilitate access to online casinos that are based outside of the platform. The plaintiffs argue that players, usually children, are able to buy the Robux digital currency through the Roblox website, and then use it at certain casinos that accept it as a legitimate payment option.

Among the cited websites are Studs, RBLXWild, Satozuki, and others. “Throughout this process, Roblox keeps track of all these electronic transfers and has knowledge of each transfer that occurs in its ecosystem,” the complaint adds. Roblox wanted to demonstrate that the digital currency bought did have an actual value, and although it wasn’t immediately possible to prove whether children had indeed gambled, the argument put forth by the gaming company did not stand.

Roblox argued that the purchase of digital currency was not unlike the purchase of a movie ticket or an amusement park ticket. However, the plaintiffs have already argued that: “Similarly, when someone purchases Robux on the Roblox platform, they do so because they can exchange Robux for in-game experiences that are of value to them. There is no reason to distinguish the movie or the roller coaster ride in the real world from an in-game experience in the virtual world.”

The judge has so far sided with the plaintiffs allowing the case to proceed.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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