Posted on: December 18, 2024, 09:26h.
Last updated on: December 18, 2024, 10:23h.
Within hours of UK news channel Sky News publishing an investigation into the illegal online gambling industry that has developed around the gaming app Roblox, the biggest three “Robux casinos” on the internet, BloxFlip, Bloxmoon, and RBLXWild, appeared to throw in the towel and shut down their operations.
Sky News claimed that the illegal third-party sites were allowing children as young as 12 to bet using the Roblox in-game currency, Robux, on games like slots and blackjack.
While the websites asked users to confirm that they were over 18, there was no age-verification process, which meant kids of any age could sign up using their Roblox credentials.
164M Users
Roblox is an online game platform and game creation system that allows its users to roam through a virtual playground of user-created games. It’s one of the most popular gaming apps in the world. As of August 2020, it had more than 164 million active users, with more than half of all American children under 16 estimated to play the game.
Sixty percent of Roblox users are under the age of 16 and 22% are nine or younger, according to a February 2022 SEC filing.
BloxFlip, Bloxmoon, and RBLXWild were collectively attracting around 2.8 million visitors each month and handling millions of dollars worth of bets, Sky News said. While only Robux were gambled on the sites, winnings could be withdrawn as cryptocurrency and converted into cash.
Soon after publication of the Sky News story Tuesday, BoxFlip released a statement saying that it was shutting down and would begin “refunding our users quickly and safely.”
Since its inception, we have always operated in strict compliance with all legal and regulatory guidelines,” it claimed. “Recently, however, the legal team representing Roblox has begun to apply pressure compelling us to cease operations.”
Bloxmoon and RBLXWild appeared to follow soon after.
Roblox Facing Lawsuit
A Roblox spokesperson told British tabloid The Sun Wednesday that it doesn’t endorse the third-party websites and “welcomes further law enforcement action and vigilance from web-hosting providers to shut down sites like this.”
A class-action lawsuit filed in Northern California by parents of children who lost money through Robux gambling accuses the Roblox Corporation of incentivizing the third-party sites and of failing in its duty of care toward its users. It also claims the company “facilitates those [gambling] transactions and profits from them.”
