Roblox asks judge to toss gambling allegations

Roblox, the website famous for its kid-made and kid-played games, is attempting to avoid a lawsuit alleging that it allowed children to gamble. Attorneys for the company pleaded with a judge this week in a federal courtroom in San Francisco to dismiss claims made by parents that their children wagered in third-party off-platform casinos using Roblox’s virtual currency, Robux.

The main question in the dispute is whether Roblox’s facilitation of unlawful gambling violated California’s Unfair Competition Law. The case’s presiding U.S. District Judge Vince Chhabria expressed doubt that the parents’ allegations were consistent with California’s criminal gambling laws. “The concern I have is that what we’re describing here is a situation where Roblox isn’t conducting a gambling operation,” he told the plaintiffs’ attorney.

Judge Pushes Back on Roblox Gambling Claims

According to Chhabria, judges must exercise caution when interpreting criminal laws in civil cases, as their decisions may have broader implications. Although he has not yet made a decision regarding Roblox’s motion to dismiss, he indicated that the parents could still pursue allegations that Roblox engaged in unfair business practices even if the illegal gambling theory is disproved.

By charging a 30% fee when Robux were converted back into dollars after being used on third-party casino websites, the parents claim Roblox made money off of gambling. The business denies this, claiming that it never operated or collaborated with those websites. Roblox contends that the plaintiffs have not demonstrated that the platform had agreements with the so-called “virtual casinos” or that it had directly broken any gambling regulations.

Robby Saldana, an attorney for Roblox, told the court that allowing the gambling claims to proceed could unjustly extend criminal laws. Andre Mura, the parents’ lawyer, stated that the claims should continue until additional evidence is provided because the case is still in its early phases.

The parents accused Roblox of violating federal racketeering law, negligence, and unfair competition in a larger class action lawsuit. Judge Chhabria rejected the racketeering claims last year, but he permitted the claims of negligence to remain. In the upcoming months, a decision on the most recent arguments is anticipated.