Online gaming platform Roblox is facing a significant class action lawsuit, accused of facilitating an unlawful gambling network aimed at minors.

In a recently filed class action lawsuit within the Northern District of California, two parents have lodged allegations against Roblox for allegedly facilitating unlawful child gambling, according to multiple media reports. The lawsuit asserts that Roblox’s digital currency, referred to as ‘Robux’, has been utilized for gambling activities despite the platform’s prohibition of gambling. Users below the age of 18 could use Robux obtained via their parents’ credit cards, and each Robux unit holds real monetary value.

The petition emphasizes the existence of third-party gambling sites that prompt users to participate in games of chance, such as blackjack, slots, and roulette, utilizing Robux. The lawsuit identifies the gambling sites in question as Satozuki Limited B.V., Studs Entertainment Ltd., and RBLXWild Entertainment LLC.

The lawsuit, as per a Bloomberg Law report, has been submitted on behalf of plaintiffs Rachel Colvin and Danielle Sass. Both plaintiffs are mothers of children who have engaged in gambling on third-party platforms connected to Robux. The parents assert that their minor children, mentioned as plaintiffs in the lawsuit, have unknowingly lost thousands of Robux while gambling on these sites.

Roblox is also facing allegations of benefiting from the scheme by collecting a 30% fee on the conversion of Robux into real currency, according to a report by Campaign Asia. The accusation asserts that the company generates millions in annual revenue from these fees, all the while having knowledge of the existence of these gambling platforms yet failing to take appropriate action. According to the plaintiffs, the gambling sites allegedly entice minors to endorse their platforms by providing incentives such as offering free Robux for promoting the sites on platforms like TikTok, the report said.

In response to the allegations, Roblox has asserted that the implicated third-party sites function independently, without any legal affiliation with the company, and are infringing upon Roblox’s intellectual property and branding, the report said. The company has stated that it is committed to being watchful in order to keep the platform safe and follow its policies.