Roblox Illegal Gambling Case Poses Tough RICO Question for Judge

US District Judge Vince Chhabria struggled with pinning legal liability in a case involving video game maker Roblox Corp.'s role in an alleged illegal gambling ring that enticed kids to spend in-game currency on third-party virtual casinos.

It’s unclear whether Roblox’s general knowledge of the alleged gambling scheme amounts to a violation of the Racketeering Influenced and Corrupt Organizations Act, Chhabria said at a hearing in his San Francisco federal courtroom on Thursday.

The lawsuit filed last year by parents and children who lost money in virtual casinos alleged that Roblox, a popular 3D “metaverse,” is aware of and profits ...