Roblox Asks California Judge to Dismiss Illegal Gambling Charges

Roblox has urged a judge in California to throw out claims that the site facilitated illegal gambling. The company is facing a lawsuit by parents who argue that the platform allowed underage gambling using Robux, Roblox’s virtual currency.

Third-party websites allowed users to play casino games using Robux. Companies could then exchange losses back into real money through Roblox’s Developer Exchange (DevEx) program.

Similarly, if players won, they could withdraw their winnings as Robux back to their Roblox account or sell them through unofficial gray-market exchanges for real money.

In their complaint, the parents claim that even though the gambling did not take place on Roblox’s platform, they are complicit. Roblox charges a 30% fee on transactions to convert Robux used on gambling websites back into dollars.

The company therefore made millions of dollars as a result of players, often children, playing casino games using Robux. The parents also argue that Roblox was aware of the gambling, but did not warn users.

Judge Says Roblox Did Not Conduct Gambling Operation

In comments reported by Courthouse News, U.S. District Judge Vince Chhabria in San Francisco partly sided with Roblox, stating, “The concern I have is that what we’re describing here is a situation where Roblox isn’t conducting a gambling operation.”

Speaking to Andre Mura, the attorney representing the parents, he added, “It seems like your arguments under the California penal code are a bit of a stretch.”

Robby Saldaña, an attorney for Roblox, agreed with the judge at Thursday’s hearing. Roblox has denied its responsibility for the gambling, stating, “Even if Roblox allegedly received a 30% Robux fee when users purchased virtual content on the Roblox platform to facilitate their off-platform use of the [virtual casinos], plaintiffs do not allege that Roblox owned or leased those games or was employed by any [virtual casino].”

Company May Still Have to Pay Compensation

However, Judge Chhabria said Roblox may still be held liable under Unfair Competition Law (UCL), noting, “You have your unfair business practices claim under the UCL. If you’re violating the spirit but not the letter of the statute in a way that’s unfair under California law, you’re liable nonetheless.”

Chhabria previously dismissed racketeering charges against Roblox, but allowed negligence claims to proceed against the company.

Parents argue that the company should have, at the very least, warned users about the risk of being lured into playing on virtual casinos.

In a hearing last year, a lawyer representing the parents said “there were instances in which the children necessarily communicated with Roblox, and where if Roblox had made these disclosures about gambling, children would have seen them and would have been able to rely on them.”

If found liable, Roblox may be forced to pay parents compensation for the losses of children gambling on virtual casinos using Robux. It is unclear exactly how prevalent the gambling was, but Roblox converts billions of dollars into Robux each year.

In the first six months of 2025, Roblox reported about $2.64 billion in bookings from Robux purchases. Over 50% of Roblox users are under 16 years old, with around 20% under nine.

California Banning Dual Currency Gambling Platforms

The third-party virtual casinos functioned in much the same way as sweepstakes casinos. Users could convert dollars to Robux, gamble on casino games, and then convert the virtual currency back to dollars.

California lawmakers have voted in favor of a bill that will explicitly ban dual-currency online casinos. The bill now only needs Governor Gavin Newsom’s signature to be enacted. Newsom has until October 12 to sign. If he fails to do so, the bill automatically becomes law.

The bill would make it a misdemeanor to “knowingly and willfully” operate or support the platforms, which the parents argue would apply to Roblox in this case.