The RBXFlip lawsuit is a federal class action filed in August 2023 in the U.S. District Court for the Northern District of California that accused Roblox and three third-party casino websites, including RBXFlip, of running an illegal gambling operation targeting children who played Roblox. RBXFlip’s operator, the Curaçao-registered company Satozuki Limited B.V., settled the claims against it in April 2026. The broader case against Roblox and the remaining gambling site defendants is still active.
What RBXFlip Was
RBXFlip launched around 2019 and described itself as a “peer 2 peer marketplace” offering casino-style games including coinflip, roulette, and slots. Players connected their Roblox accounts and sent Robux, Roblox’s virtual currency, to a “storage bot” on the Roblox platform. The bot converted the Robux into on-site gambling credits. Winnings could be converted back into Robux; losses stayed with the operator.1Courthouse News Service. Colvin et al. v. Roblox Corporation et al. Complaint
Because RBXFlip was enrolled in Roblox’s Developer Exchange Program, the complaint alleges it could ultimately convert its winnings into U.S. dollars, with Roblox collecting a 30% fee on those conversions.2ClassAction.org. Colvin et al. v. Roblox Corporation et al. Complaint By December 2021, the site’s operator claimed RBXFlip was generating upward of 10 million Robux per day.1Courthouse News Service. Colvin et al. v. Roblox Corporation et al. Complaint
The site’s terms of service required users to be 18. According to the complaint, the site had no real age verification. A promotional video cited in the complaint showed an RBXFlip spokesperson saying the only requirement to gamble was a Roblox account at least 13 days old. RBXFlip also claimed to block U.S. users, but according to the complaint that block could be bypassed by clicking a “continue” button on the entry screen.2ClassAction.org. Colvin et al. v. Roblox Corporation et al. Complaint
The Class Action
On August 15, 2023, Rachelle Colvin and Danielle Sass filed Colvin et al. v. Roblox Corporation et al. (No. 3:23-cv-04146) on behalf of their minor children and a proposed nationwide class of similarly situated minors. The complaint named four defendants: Roblox Corporation, Satozuki Limited B.V. (RBXFlip), Studs Entertainment Ltd. (operator of Bloxflip), and RBLXWild Entertainment LLC (operator of RBLXWild).3Weitz & Luxenberg. Roblox Gambling Litigation
The plaintiffs alleged that Roblox knowingly allowed these casino sites to use its currency and technology to run illegal gambling aimed at children. They noted that at least 70% of Roblox’s users are under 18 and more than half are under 13.2ClassAction.org. Colvin et al. v. Roblox Corporation et al. Complaint Although Roblox’s community standards prohibit simulated gambling with Robux, the suit alleges Roblox tracked the currency transfers to and from the casino sites, profited from the 30% conversion fees, and never took meaningful steps to shut the operations down.4Rolling Stone. Roblox Child Gambling Lawsuit
The complaint pleaded claims under the federal RICO statute, California’s Unfair Competition Law and Consumers Legal Remedies Act, New York’s General Business Law, and negligence, and sought damages and a jury trial.5ClassAction.org. Class Action Claims Roblox Casino Websites Operate Illegal Gambling Ring Targeted at Children
As to RBXFlip specifically, the complaint alleges Roblox’s 2019 enforcement effort against the site was limited to demanding it stop using Roblox’s copyrighted branding. Roblox never demanded that RBXFlip stop running its gambling operation, the plaintiffs say.2ClassAction.org. Colvin et al. v. Roblox Corporation et al. Complaint RBXFlip was still operating as of August 2023.6TechCrunch. Roblox Children Gambling Class Action Lawsuit
Roblox’s Position
Roblox has said the gambling sites are unauthorized and not affiliated with the company. A spokesperson said in 2023 that “bad actors make illegal use of Roblox’s intellectual property and branding to operate such sites in violation of our standards,” and that dedicated teams work to remove them.6TechCrunch. Roblox Children Gambling Class Action Lawsuit In court filings, Roblox stated it “did not own, operate, or condone” the virtual casinos and had “tried to stop them.”7Courthouse News Service. Roblox Dodges Lawsuit Claims Over In-Game Currency Gambling The company also said it has issued cease-and-desist letters to third-party gambling site operators since 2019.8next.io. Roblox Refutes Underage Gambling Allegations
What the Court Has Ruled
The case has survived multiple motions to dismiss, though several claims have been narrowed.
On March 26, 2024, Judge Vince Chhabria dismissed the RICO, CLRA, and New York General Business Law claims but let the California Unfair Competition Law and negligence claims proceed. The dismissals were with leave to amend. The court also rejected Roblox’s argument that Section 230 of the Communications Decency Act shielded it from liability, reasoning that the plaintiffs’ claims targeted Roblox for facilitating gambling transactions rather than for publishing content.9GovInfo. Colvin v. Roblox Corporation, Order Granting in Part and Denying in Part the Motion to Dismiss
Two days later, on March 28, 2024, a supplemental order dismissed the civil conspiracy claim but allowed an unjust enrichment claim to proceed. The judge found the plaintiffs had adequately alleged Roblox was enriched beyond the amount of users’ gambling losses because of the transaction fees collected on Robux conversions.10GovInfo. Colvin v. Roblox Corporation, Supplemental Order
In an April 16, 2025 ruling, the court dismissed certain Computer Fraud and Abuse Act claims and a trespass to chattels claim but denied dismissal of trademark infringement, tortious interference, breach of contract, and indemnification claims.11Justia. Colvin et al. v. Roblox Corporation et al., Filing 159
The RBXFlip Settlement
In April 2026, Satozuki Limited B.V. and its operator, Paul Clish, settled the claims against them. The settlement resolved individual claims from minors in exchange for information the plaintiffs had been unable to obtain from Clish through depositions or written discovery.12MLex. Satozuki, Operator Settle US Claims Over Online Gambling The deal removed RBXFlip’s operator as a defendant but did not end the case. Claims against Roblox and the other gambling site defendants continue.
Where the Case Stands
As of mid-2026, the litigation is active under the caption Soucek v. Roblox Corporation, the case having been re-captioned after amendments. Discovery is ongoing. Roblox filed another motion to dismiss in June 2025, and the court held a hearing on it in early 2026. A final ruling on the remaining claims has not been publicly reported.7Courthouse News Service. Roblox Dodges Lawsuit Claims Over In-Game Currency Gambling With RBXFlip’s operator now out of the case, the fight centers on Roblox’s alleged role in enabling the gambling ecosystem and whether it owed a duty of care to its young users.