An investigation has uncovered details of an illegal gambling ring that is enticing children to bet, using their accounts on the popular gaming platform, Roblox.
Illegal casinos are manipulating minors, as young as 12, to bet their Roblox credit, known as Robux, on slots and blackjack.
The extent of the problem has been made clear with Sky News reporting one of the illegal gambling outlets, Bloxmoon, has facilitated user losses of $11.4m (£8.8m) since it went live in late 2022.
Sky News also probed BloxFlip and RBLXWild, showing that collectively the sites received around 2.8 million visitors each month, with millions staked in bets.
Taking the lead from the investigation, the Gambling Commission has acted to launch a report of its own, while banning the illegal casino outlets from operating in the U.K. jurisdiction.
“Criminals will always try and find new ways to exploit people, including children,” said the regulator’s chief executive Andrew Rhodes.
New: Criminals are using Roblox to lure children as young as 12 into online gambling.
One casino @MickeyCarroll0 and I investigated is making over $10,000 a day, and handling $3 million in bets per month. pic.twitter.com/hNKJCOQX2M
— Ben van der Merwe (@_BvdM) December 17, 2024
How does the illegal Roblox gambling operate?
The illicit casinos work by abusing the the purpose of Robux, which is supposed to be used for in-game purchases such as clothes, equipment, and experiences.
Robux can be purchased using real money, with $1.27 (£1) buying 100 units.
When an account is created on the casinos, using Roblox credentials, the platforms gain access to a user’s Roblox account, facilitating the use of Robux as the gambling currency.
Although some of the casinos ask users to tick a box to confirm they are over 18, verification is thought to be non-existent.
With the Robux used as gambling chips for casino games, winnings can also be converted into cryptocurrency.
A teenage Roblox user in the United States told Sky News how he had used the sites to gamble around 15 million Robux ($190,439 / £150,000), starting out at the age of 14.
“My mother tried to get me to stop, but I didn’t,” said Robert*. “I just liked the adrenaline of doing bigger and bigger bets.”
Roblox has insisted the casino platforms are “in no way endorsed or authorized by Roblox” with the company taking action, including “numerous steps to disrupt their activity, which violates our Terms of Use”.
That has not been enough to allay the grievances of concerned parents who have taken a class action lawsuit against Roblox.
Parents of five children who used the casinos brought the case, initially filed in August 2023 and later given permission to proceed in September this year after a judge ruled the company would need to answer the parents’ allegations of negligence.
Their position is that Roblox knew of this activity for years and has not done enough to eradicate it, failing to keep kids safe online.
Image credit: Via Ideogram
