A U.S. federal judge has dismissed a lawsuit accusing Roblox of allowing children to gamble using its virtual currency, Robux. The class action, filed by parents in August 2023, claimed that minors used Robux to gamble on third-party websites and that Roblox knowingly allowed it while profiting from transaction fees.

The case was heard in San Francisco by the U.S. District Judge Vince Chhabria and it was dismissed after the court found no evidence that Roblox violated gambling or consumer protection laws. The judge said the laws cited by the parents only apply to companies that directly operate gambling systems, while Roblox’s alleged involvement was indirect. He compared Roblox’s situation to a hotel that knows a guest is running an illicit poker ring in one of its rooms and does not stop it because it’s good for business.

Roblox Defends Its Role in the Case

Roblox, one of the world’s most popular gaming platforms, filed a motion in June 2024 to dismiss the case. The company argued that it neither owned nor supported any gambling sites and had acted to block third-party platforms from using Robux for gambling.

“Plaintiffs still seek to impose liability on Roblox, although it did not own, operate, or condone the virtual casinos and tried to stop them,” the company said. Roblox urged the court to dismiss the case due to defects in the pleadings.

Earlier in March 2024, Judge Chhabria had already dismissed racketeering claims but allowed negligence and unfair competition claims continue. These were later dropped after the court ruled that the plaintiffs did not provide enough evidence of wrongdoing.

Judge Finds Laws Do Not Apply to Roblox

Judge Chhabria, in his ruling, said that the laws cited by the parents, including the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act, were written for physical gambling devices, not for online games.

He also dismissed negligence and fraud claims, saying the parents failed to show Roblox made misleading statements or that they relied on any company communication. All related state-law claims were dismissed with prejudice, meaning they cannot be refiled.

Case Concludes with Dismissal

The judge also ruled that the parents could not seek further legal action because their children no longer used Roblox and were unlikely to return. Without ongoing harm or evidence of further risk, there was no legal basis for injunctive relief.

The ruling brings an end to a long-running dispute over Roblox’s virtual currency and its alleged connection to gambling on third-party sites. Neither Roblox nor the parents have issued public comments since the decision. The dismissal stands as a major legal victory for Roblox, reinforcing its defense against claims related to how minors engage with its in-game economy.