Roblox Tries to Get Lawsuit Thrown Out Over Alleged Ties to Gambling

The central dispute is whether Roblox can be held liable under California’s Unfair Competition Law, with parents alleging the company both enabled gambling and profited from itImage Source: Shutterstock.com

Robloxwent back to federal court in San Francisco this week. The company asked a judge to throw out claims that it made money from kids gambling with its virtual money Robux. Parents filed a class action lawsuit saying their children could bet Robuxon outside websites that worked like casinos.

Roblox Denies Profiting from Children’s Losses in Virtual Casinos

The heart of the argument revolves around Roblox’s potential legal liabilityunder California’s Unfair Competition Law. Parents argue that the company did not just allow gambling activities but also made money from them, as Roblox ngakes a 30% cut when players exchange Robuxback to US dollars. Their legal documents suggest this setup let Robloxrake in millions while kids lost cash in virtual casinos.

Robloxsays it was not involved in running these sites. The company’s lawyers told the court that Robloxdid not own or manage any gambling platforms and had no official deals with them. They said that the state’s criminal gambling laws cannot be stretched to cover what Robloxdid, since the disputed activities happened outside the platform.

US District Judge Vince Chhabriaseemed doubtful about the parents’ use of California’s penal code. At Thursday’s hearing, he said Robloxwas not running a gambling operation itself, and that a broad reading of criminal law in a civil case might lead to unexpected results.

Parents’ Case Against Roblox Stays Alive as Judge Considers Smaller Claims

Still, the judge hinted that the case could move forward on smaller grounds. He pointed out that under California law, a company could still be held responsible if its actions were seen as unfair even without breaking criminal laws. This opened up the chance for the parents to keep pushing their claims under the “unfair practices” part of the Unfair Competition Law.

Lawyers representing the parents emphasized that the lawsuit is still in its early phases. They contended it is too soon to dismiss claims before more facts come to light about how the gambling platforms worked and if Robloxshould have given users better warnings about them.

This is not the first time Robloxhas come under fire for this issue. In an earlier ruling, Judge Chhabriathrew out racketeering charges from the same group of parents but allowed their negligence claims to continue. The latest court session marks the next step in the ongoing legal battle.

The fight breaks out as Californialawmakers push to ban what they call dual-currency casinos, which let players bet using tokens they can later swap for real money. If it becomes law, this rule could change how courts look at similar cases down the road.