Illegal ‘Roblox’ Casinos Target Children for Online Gambling Causing Both Finacial & Psychological Dangers

‘Roblox’ is currently one of the most popular gaming platforms, and if you’re a parent or a sibling or come in touch with the younger populations in general, you’ve likely heard it mentioned in conversations even if you do not partake in the hobby.

Naturally, children and the “online” world don’t always mix well. There’s always that looming danger of strangers, online bullying, or inappropriate content, and now we can add one more thing to the list – illegal online casinos.

A recent Sky News investigation discovered illegal online casinos are using ‘Roblox’ to target children as young as 12, allowing them to gamble with in-game currency (Robux) on games like slots and blackjack.

Winnings can be converted into real money through cryptocurrency. Roblox is very popular among kids, with 42% of its users being under 12, and one teen shared that he gambled 15 million Robux, starting at just 14 years old.

The teen shared that he continued gambling despite his mother’s attempts to stop him because he enjoyed the thrill of placing bigger bets. He didn’t realize he was breaking the law and thought it was just a way to make extra money, not understanding that it was actually gambling.

My mother tried to get me to stop, but I didn’t, I just liked the adrenaline of doing bigger and bigger bets. I just thought it was something you could do to make extra money, I didn’t even know what gambling was.

Sky News investigated three major Robux casinos—BloxFlip, Bloxmoon, and RBLXWild—that attract millions of visitors and handle large amounts of money. In response, the Gambling Commission has started an urgent investigation and blocked these sites in the UK. The Commission’s chief warned that criminals are always looking for ways to exploit people, especially children.

Roblox’s in-game currency, Robux, is meant to buy virtual items, but some illegal casinos allow users to gamble with it. Users create accounts on these sites using their Roblox login, and the casinos take their Robux in exchange for virtual gambling chips. These chips can be used to play casino games and later converted into cryptocurrency or real cash.

BloxFlip shut down within 36 hours of Sky News revealing its findings. The co-owner of the casino said Roblox’s legal team pressured them to close the platform.

A Roblox spokesperson stated that the illegal casinos are not authorized by the platform. Roblox has taken steps to stop these activities and works with law enforcement to pursue the casino owners. They also call for more action from authorities and web hosting providers to shut down such sites.

We have a dedicated group focused on identifying potentially fraudulent activity on Roblox and we work collaboratively with law enforcement authorities where possible to pursue the owners of such websites.

Our efforts have met with some success, but we would welcome further law enforcement action and vigilance from web hosting providers to shut down sites like this.

Teen from the start of this report started gambling on BloxFlip after seeing a social media ad, initially betting small amounts but quickly escalating and gambling nightly with friends.

One friend threatened suicide after losing a large amount, but they avoided telling adults out of fear. Dr. Jane Rigbye warns that unlicensed casinos lack safeguards and are especially dangerous, increasing the risk of gambling problems later in life.

The teen believes the casino staff knew many users were underage, as minors openly talked about their ages in the Discord chatrooms, and the staff ignored it. BloxFlip rewarded high spenders with “Whale” or “Platinum Whale” status, and several users holding these titles admitted to being underage.

In the gaming industry, a “Whale” refers to a player who spends a very large amount of money on a game. This term is often used in free-to-play games, where most revenue comes from a small group of players who make significant in-game purchases, such as virtual items, currency, or upgrades.

Whales are highly valuable to game developers because their spending can account for a large portion of the game’s overall revenue.

Roblox is currently facing a class action lawsuit in the US from parents of children who used illegal casinos. The lawsuit claims Roblox knew about the issue for years but failed to act. The lawyer argues Roblox has a responsibility to keep its child-focused platform safe.

Roblox denies all wrongdoing and says it “employs multiple methods to detect and disrupt bot accounts” connected with the gambling websites.

The parents suing Roblox are also taking legal action against the gambling websites, but so far none of the websites’ owners have responded to the lawsuit.

One of BloxFlip’s owners told the website’s users on their chatroom that “many companies get sued” and that it is “part of doing business.”

This issue is not at all simple to resolve, and the core problem lies in numerous factors, but the overall push in “gambling” from all sides in recent years is obvious. It’s becoming increasingly clear that some aspects of the gaming industry are profiting off of children and their exposure to gambling.

If you’re a part of the gaming community, you are likely aware of the controversy surrounding loot boxes and their resemblance to gambling, especially in games popular with children and teens. Loot boxes are virtual items that players can purchase or earn, containing random rewards such as cosmetic items, weapons, or upgrades.

Players spend real money to open loot boxes without knowing what they’ll receive, similar to betting. This element of chance can encourage addictive behavior. Countries like Belgium and the Netherlands have banned loot boxes, declaring them a form of gambling, while other regions continue to debate regulations to protect vulnerable players.

Although loot boxes and these illegal casinos are at a glance unconnected, both are profitable due to the fact that they promote addictive, and later even dangerous behavior.

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