The lawsuit alleged that Roblox was in violation of its own terms of service, which states that “experiences that include simulated gambling, including playing with virtual chips, simulated betting, or exchanging real money, Robux, or in-experience items of value are not allowed.”

According to the lawsuit, Roblox users, most of whom are minors, “first purchase Robux through the Roblox website, using either their own money, a parent’s credit card, or gift cards they possess.”

The minor then “navigates to one of the” three aforementioned sites’ “virtual casinos” that “exist outside the Roblox ecosystem,” according to court papers.

“Then, the user links their Robux wallet on Roblox’s website to the gambling website,” the court documents alleged.

“And finally, once the minor-user’s wallet is linked, the gambling website converts the minor user’s Robux into credit that can only be wagered in their virtual casinos,” according to the lawsuit.

“The gambling credits function just like chips in a brick and mortar casino,” the defendants alleged in court papers.

“Users ‘buy in’ using their Robux, obtain chips, gamble until they lose their money or wish to cash out, and, if they increase their credits, they cash those credits out in exchange for Robux,” the lawsuit alleged.

“This entire exchange of Robux occurs on the Roblox platform with Roblox’s knowledge and active support, and Robux never leave the Roblox ecosystem unless and until they are cashed out for fiat currency,” according to court documents.

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