The online world offers a wealth of opportunities. But not all of them are for good. A recent Sky News investigation has revealed that illegal online casinos are using one of the most popular video games in the world to lure children as young as 12 into the unlicenced gambling sphere. Roblox is popular with children and the Sky News article says 42 percent of its users are thought to be age 12 or under. Used by about 80 million users daily, these unlicenced platforms use the in-game currency, Robux, as chips. This turns a digital playground that should be safe into a fertile and dangerous betting arena.
Roblox connects to unauthorised gambling websites like BloxFlip, Bloxmoon and RBLXWild. This gives children the opportunity to bet Robux on games such as blackjack and roulette. Then, perilously, children can withdraw their winnings as cryptocurrency and convert it into actual cash. This is a loophole that not only introduces minors to serious risks but opens them up to an unregulated labyrinth of underground exploitation.
A dangerous addiction
For many, a harmless gamble is something that is enjoyed. While many associate problem gambling with online casinos and operators, there is an issue with children and scratchcards, as seen in a recent SiGMA News article, where Ireland’s regulators urged parents not to buy children scratchcards for Christmas.
Sky News interviewed Robert (not his real name) who is a 16-year-old from the US. Robert revealed he started gambling on these sites aged 14. He says he gambled around 15 million Roblux (£150,000/€175,500/US$190,500). This is an example of how alluring these platforms are and how easy it is for children to become attracted to gambling without being fully aware of the implications.
Robert said, “I just liked the adrenaline of doing bigger and bigger bets. I didn’t even know what gambling was.”
The lack of age verification on these sites worsens the problem. Although Sky News found some casinos ask users to confirm they were over 18 by ticking a box, or to input a date of birth, there are no real safeguards in place to stop any minor accessing the platforms. Consequently, these casinos make a lot of profit from underage players, often near millions of pounds worth or wagers each month.
Bloxmoon released data revealing that users lost an astounding $11.4 million (£8.9/€10.4 million) since its launch in 2022. In the six months from April to October 2024, RBLXWild, another illegal site, aided bets worth $22.3 million (£17.6/€20.7 million), pocketing $2.2 million (£1.7/€2 million) in revenue.
The reality of psychological and financial harm
More alarming than the financial losses is the psychological damage to children. Without protective measures that a licenced casino employs, these unregulated platforms expose its users to addiction, anxiety, stress and can lead to suicidal thoughts when the reality of what has happened kicks in. Robert described how a friend threatened suicide after losing 20,000 Robux (£200/€234/US$254) on a single night.
There is an issue that aggravates this. The absence of adult oversight. Whilst it’s true that parents should apply parental blocks and other security measures, social media and peers know how to overcome these obstacles in the real-world. Tech skills often exceed parental levels among young adults. Children often keep things like a gambling habit hidden from parents, peers, siblings, and teachers. As Dr Jane Rigbye, CEO of underage gambling charity YGAM, explains, early exposure to gambling is dangerous. “If children are exposed to gambling at an earlier age, they’re more likely to experience difficulties with gambling later in life.”
Whales, winners, and worrying trends
The illegal gambling platforms such as the ones named here openly encourage betting through social media groups such as Discord. This awards users who wager vast amounts with elite statuses such as “Whale” or “Platinum Whale.” Does this not turn gambling into a status symbol for young users? Are the influencers they follow encouraging this unwittingly? More shocking still, many of these high rollers, who are openly underage, flaunt their achievements online.
Sky News found that in one instance, a 14-year-old “Platinum Whale” boasted of betting over 17.5 million Robux (£175,000/€204,750/US$222,250). Alarmingly, site moderators appeared to acknowledge this behaviour. “Nobody cared,” Robert recalls of his time in the gambling forums.
Legal and regulatory action
Following the Sky News findings, The UK Gambling Commission launched an urgent investigation. It also blocked access to the illegal casinos in the UK. The downside of this is that taking these platforms down is akin to whack-a-mole: as fast as these are taken down, more pop back up. These types of websites often resurface with slightly altered web addresses, continuing their operations with minimal disruption. A recent 2024 Young People and Gambling report from the UK Gambling Commission revealed a troubling rise in gambling participation and associated risks among young people. According to the report, 27 percent of 11 to 17-year-olds spent their own money on gambling in the past year, up from 26 percent in 2023.
Sir Iain Duncan Smith, a leading advocate for stronger gambling regulation, argues that existing laws are insufficient. “There needs to be greater powers to seek these people out, arrest them, and put them inside,” he says. “As long as the owners can hide and move their sites, children will remain at risk.”
Roblox itself is also facing legal action. A class-action lawsuit filed by the parents of affected children accuses the company of negligence, claiming Roblox did not protect its young user base. Court filings show Roblox has been aware of gambling sites like BloxFlip since at least April 2022, yet only took significant legal action against them in October 2024. The company denies wrongdoing, emphasising that these websites violate its terms of use, and the platform does not endorse or allow them.
A shared responsibility
Regulatory action is undoubtedly a step in the right direction, though tackling this issue requires collective responsibility. These platforms, such as Roblox, must increase their safeguards to prevent underage gamblers from linking their accounts to unauthorised websites. Parents and guardians, too, must remain vigilant and be aware of the facts. Closer monitoring of their children’s online activities, and use of more advanced controls will educate both parents and the child. By recognising the early warning signs of gambling addiction or problem behaviour, parents and guardians can empower the child about the realities of underage and problem gambling. The UK government recently announced the introduction of a mandatory levy of up to 1.1% on the gross gambling yield (GGY), aiming to generate £100 million annually. The government earmarked some of this to combat gambling-related harms.
Andrew Rhodes, Chief Executive of the Gambling Commission, sums it up: “Illegal casino operators are criminals. They’re supported by criminal gangs and are part of the criminal underworld. It’s important all of us play our part in trying to frustrate them.”
A lesson learned?
Although Robert has since quit gambling on the Roblox casinos, the experience has left him scarred. He accepts the “adrenaline” of betting left other activities he did as dull and numbing. He also admitted that this experience has shaped his view of gambling for life. “I just wasn’t getting the same feeling doing anything else,” he reflects. Asked whether he’d consider gambling legally in the future, he pauses before answering: “Probably not.”
shines a grim reality on the cross between gaming and gambling. Authorities, regulators and government scramble to respond and keep up with developments, but the fallout for children and their families increases in the meantime. The only way to address the issues raised here is to take swift action, enforce heavily and support this with tough regulation to deter users and illegal operators. Collaboration with tech platforms and parents is vital.
The focus of the immediate future is that the digital playground must be a place where children are safe to play – not preyed upon.
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