Illegal Casinos Lure In Children Through ‘Roblox,’ Revealing Hidden Financial and Psychological Risks

‘Roblox‘ is one of the most popular gaming platforms today, and if you’re a parent, sibling, or know young kids, you’ve probably heard it mentioned even if you don’t play it yourself.

However, the online world isn’t always safe for children. Along with dangers like strangers, bullying, and inappropriate content, there’s now another concern: illegal online casinos.

A Sky News investigation found that illegal casinos are using ‘Roblox ‘to let kids as young as 12 gamble with in-game currency, Robux, on games like slots and blackjack. Winnings can even be converted into real money using cryptocurrency.

Since Roblox is so popular with children—42% of its users are under 12—this is a serious issue. One teen revealed he started gambling at 14 and lost 15 million Robux. Despite his mother’s warnings, he kept going because he enjoyed the thrill of placing bigger bets. He didn’t realize it was illegal and thought it was just a way to earn extra money.

The teen said he kept gambling even though his mom tried to stop him because he liked the excitement of making bigger bets. He didn’t know it was illegal and thought it was just an easy way to make extra money, not realizing 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 gambling sites—BloxFlip, Bloxmoon, and RBLXWild—which attract millions of visitors and handle large amounts of money. The UK Gambling Commission has now launched an investigation and blocked these sites, warning that criminals often find ways to target people, especially kids.

Robux, Roblox’s virtual currency, is meant for buying in-game items, but illegal casinos let users gamble with it. Users log in with their Roblox accounts, and the casinos take their Robux in exchange for gambling chips. These chips can be used to play games like slots and blackjack, and winnings can be turned into cryptocurrency or real money.

BloxFlip shut down quickly after Sky News revealed the investigation. The site’s co-owner said Roblox’s legal team pushed them to close.

Roblox said these gambling sites are not approved by them, and they’re working with law enforcement to stop the activity. They also urge authorities and web hosting providers to help shut down such websites.

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 facing a class action lawsuit in the US from parents of children who used illegal casinos. The parents claim Roblox knew about the problem for years but did nothing to stop it. The lawyer argues that Roblox has a responsibility to keep its platform safe for kids.

Roblox denies the accusations and says it uses several methods to spot and stop bot accounts linked to gambling sites.

The parents are also suing the gambling websites, but so far, the owners have not responded.

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

This issue is complex and not easy to solve, but it’s clear that the gaming industry has been encouraging gambling, and some are making money off kids being exposed to it.

If you’re into gaming, you’ve probably heard about the controversy around loot boxes and how they are like gambling, especially in games popular with kids and teens. Loot boxes are virtual items that players can buy or earn, which contain random rewards like cosmetic items, weapons, or upgrades.

Players spend real money to open loot boxes without knowing what they’ll get, much like betting. This chance factor can lead to addictive behavior. Countries like Belgium and the Netherlands have banned loot boxes, calling them a form of gambling, while other places are still debating rules to protect players.

Although loot boxes and illegal casinos seem unrelated, both make money by encouraging addictive behavior, which can eventually be harmful.

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