Illegal Roblox Casinos Exploit Children, Sky News Investigation Finds

A Sky News investigation has revealed how unlicensed gambling operators are using the Roblox platform to lure children into betting with in-game currency, prompting calls for greater parental and regulatory vigilance, according to Casinos Blockchain.

An investigation by Sky News has found that unlicensed gambling operators are exploiting Roblox, one of the world’s most popular children’s gaming platforms, to run illegal online casinos. According to the report, cited by crypto gambling information site Casinos Blockchain, these operators allow young users to convert Robux, the platform’s in-game currency, into wagers on casino games such as blackjack and slots.

The illegal sites reportedly let players log in using their Roblox credentials, bypassing official age restrictions and parental controls. Robux won or lost on these platforms can then be exchanged for cryptocurrency or cash, according to the findings.

Case highlighted in investigation

Sky News spoke to a 16-year-old, named as Robert, who said he began gambling on such sites at the age of 14. He reportedly wagered more than 15 million Robux, equivalent to around £150,000, describing how the excitement of high-stakes betting kept him engaged despite being unaware his activity was illegal.

The Gambling Commission’s chief executive, Andrew Rhodes, was quoted in the Sky News report describing the operators behind these sites as “criminals supported by criminal gangs”. Despite enforcement action, the illegal casinos reportedly resurface quickly under new web domains after being shut down.

Lack of safeguards

Casinos Blockchain said the unlicensed platforms operate without any of the protections required of regulated gambling operators. These include identity and age verification checks, deposit and betting limits, and withdrawal protections or cooling-off periods designed to curb impulsive behaviour. The absence of such measures, the company said, leaves children particularly vulnerable to financial loss and gambling-related harm.

The company contrasted this with the wider regulated gambling sector, including licensed crypto casinos, which it said face increasing compliance requirements aimed at strengthening player protection.

Calls for action

Casinos Blockchain urged parents to monitor children’s online activity, restrict access to third-party gambling sites, and discuss the risks of gambling with children. It also called on Roblox to increase proactive monitoring of its platform and cooperation with law enforcement, and urged regulators to adapt further to tackle operators exploiting gaming platforms to target underage users.

The findings add to wider scrutiny of how illegal gambling operations are adapting to exploit platforms not originally designed for wagering, raising fresh questions about enforcement and child protection in online gaming environments.

Sources