Judge reportedly allows Roblox’s illegal gambling lawsuit to proceed. The gaming platform for those that don’t know is being accused of allowing online betting platforms and companies to prey on kids.
Roblox’s Illegal Gambling Lawsuit
Roblox recently faced legal action from two mothers alleging that the platform allowed their children to be targeted by an illegal gambling ring. The company sought to dismiss the lawsuit, citing Section 230 of the Communications Decency Act, which typically protects online platforms from liability for third-party content.
However, the judge ruled that this law didn’t apply in this case, as Roblox wasn’t merely accused of hosting third-party content but of facilitating illegal transactions between minors and online casinos.
The complaint highlighted how Roblox users, many of whom are children, could purchase digital currency called “Robux” on the platform’s website and then use it on external gambling websites like Satozuki, Studs, and RBLXWild. The plaintiffs argued that Roblox was aware of these transactions and profited from them.
Roblox’s Attempt to Dismiss the Case
Roblox attempted to dismiss the case by arguing that purchasing Robux was akin to buying tickets for entertainment and didn’t involve economic gain. However, the judge disagreed, emphasizing that Robux indeed had economic value as they could be exchanged for in-game experiences.
The judge compared this to purchasing tickets for real-world entertainment, noting that both have economic value even if they can’t be exchanged for cash.
Issues and Concerns Raised By the Judge
Furthermore, the judge raised concerns about the nature of the in-game experiences offered by these gambling websites. While Roblox argued that users got what they paid for, the judge highlighted the vulnerability of children in such situations.
In a striking analogy, the judge likened the scenario to a casino setting up near an amusement park and enticing children to gamble away their tickets, which the casino could then exchange for cash.
The Case Will Be Allowed to Proceed despite Roblox’s Efforts to Dismiss Claims
Despite Roblox’s efforts to dismiss certain claims, the judge allowed the case to proceed, signaling the seriousness of the allegations and the need for further examination. This decision underscores the responsibility of online platforms to protect their users, particularly minors, from potentially harmful activities facilitated through their services.
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