CanadianGamingBusiness

A 12-year-old child from British Columbia has sued online game creation platform Roblox, alleging that it is designed to be addictive and utilizes “gambling-like mechanisms.”

The Kamloops minor’s father filed the class-action claim in B.C. Supreme Court against Roblox Corp. and Roblox Canada Inc. last week on his child’s behalf, as first reported by CBC News.

“Roblox is designed and operates with structural features and gameplay mechanics that are recognized to be addictive, manipulative and financially exploitative,” alleged the filing, dated Sept. 18 and viewed by Canadian Gaming Business.

Roblox allows its users to create games for themselves and other users to play via Roblox Studio. Essentially a metaverse, it hosts a vast range of user-created games with various age limits. Players have virtual avatars and can chat with and connect with each other, among other options outside of the in-world games themselves. As of February 2025, the company claimed the platform has an average of 85 million daily active users.

Signs of addiction at a young age
The filing stated that the child has played Roblox since age five or six and now spends around two hours a day on it, using various technology platforms to do so.

The child, identified throughout the document as D.J., “exhibited signs of addiction” shortly after they first began playing the game at a young age, added the claim.

“Symptoms include but are not limited to anxiety, depression, irritability and mood swings, impaired concentration and memory, emotional instability, anti-social behaviour, loss of interest in other activities, fatigue and low energy, inappropriate behaviour and language and decreased social skills.”

The suit asserts that Roblox, with its supposed deliberately addictive design, targets children as a core demographic and that 40% of its users are 12 or younger.

While Roblox is free-to-play, players can buy and sell using the in-world Robux virtual currency, which can also be purchased with and exchanged for real-world money in some cases. There’s also a monthly subscription service, Roblox Premium, which offers registrants a monthly supply of Robux, discounts on purchasing items, more Robux per purchase, and the ability to trade limited items.

The class-action filing claims that D.J. has spent up to $500 purchasing Robux.

“Roblox does not simply allow microtransactions; it actively equips and incentivizes game creators with tools and monetization systems designed to drive increased spending by users.”

‘Functionally equivalent to gambling’
The lawsuit also took issue with the use of game mechanics like spin-the-wheel contests and mystery boxes. “These chance-based merchandising systems are functionally equivalent to gambling in that they exploit psychological vulnerabilities by leveraging randomized reward structures,” added the lawsuit.

It added that the in-game marketplace encourages speculative trading among minors who lack the financial and cognitive maturity to understand the risks associated with such transactions.

Ultimately, the plaintiffs argued that Roblox’s “harmful design elements” put its users, particularly those underage, at risk of developing recognized addictive gaming disorders. D.J. and his father filed on behalf of all Canadians who claim to be addicted to Roblox and all minors who’ve paid to join Roblox Premium, seeking damages and restrictions on Roblox’s marketing and operation in Canada.

The lawsuit’s claims need to be certified by a judge before it can proceed. A hearing is scheduled for Oct. 3.

“The question the court will ultimately have to decide is whether Roblox engaged in deceptive behavior that prevented users, children and their parents from understanding the risk that could befall users of Roblox, if it is found that Roblox was created in such a way that allowed users and children to become addicted to the platform,” Justin Giovannetti, a lawyer for Slater Vecchio LLP, which helped with the suit, told CBC.

Roblox asks California judge to toss another lawsuit
Roblox has faced legal challenges in the U.S., including one in California that the company asked a federal judge to throw out on Sept. 18, the same day the B.C. suit was filed. That suit alleged that Roblox facilitated gambling by children using its Robux in-house currency in virtual casinos created in the game’s metaverse and operated by third parties.

The California plaintiff claimed that Roblox knowingly allowed those third parties to accept wagers using Robux and charged a 30% fee to convert Robux used in the virtual casinos back into dollars.

The operator-led Responsible Online Gaming Association (ROGA) has selected the Responsible Gambling Council (RGC) as its partner to develop a first-of-its-kind U.S. certification for responsible online gaming.

The intention is for the two RG-focused organizations to establish a new industry benchmark through a certification that evaluates operators on their self-exclusion and player support tools, staff training, marketing programs and other key areas through a data-driven, evidence-based approach. The aim is to help operators beef up their RG programs and practices to go beyond merely meeting provincial and state regulatory requirements.

RGC and ROGA will begin developing the framework for the certification framework, which will be used to evaluate all ROGA members upon completion.

ROGA’s membership accounts for 90% of the legal U.S. sports betting industry in terms of handle. Its eight members include six of the biggest names that are licensed and offering online casino and online sports betting in Canada’s regulated iGaming province of Ontario:

bet365
BetMGM
DraftKings
FanDuel
PENN Entertainment, owner of theScore Bet
Bally’s

The other two members, Fanatics Betting and Gaming and Hard Rock Digital, are not currently offering iGaming in Ontario, but both operators are exploring possibly expanding north of the border.

Operators lean on RGC expertise
In the Toronto-headquartered non-profit RGC, ROGA and its operator members have partnered with an organization that has been one of the world’s foremost leaders in player protection, prevention and responsible gaming solutions for more than 40 years.

The RGC conducts research, consults with stakeholders including operators and regulators, rolls out practical initiatives, provides education and develops and implements best practices. It also has its own accreditation program, RC Check, developed in consultation with policy makers, gambling providers, players and people who have experienced gambling harm.

RG Check accreditation helps both land-based and online gambling providers evaluate, monitor and manage all aspects of their RG strategy. It existed for brick-and-mortar gaming before Ontario launched regulated iGaming in April 2022, and iGaming Ontario (iGO) mandates that all regulated iGaming operators must achieve RG Check. RG Check accreditation is valid for three years before operators need to reapply and get certified all over again.

ROGA said that RGC’s expertise will serve as a critical resource in the creation and management of the certification program, and RGC CEO Sarah McCarthy said the new U.S. certification “will build on years of evidence-based work and experience building RG Check as a trusted standard.”

RGC and Shatley first worked together back in 2023, before ROGA was formed, and RGC and ROGA collaborate with each other and lived-experience specialists EPIC Global Solutions and mental health service provider Kindbridge Behavioral Health on the “Know Your Play” campaign, an initiative providing U.S. college students with detailed content focused on responsible gaming, mental health and well-being and financial literacy.

Collaboration always key, RGC tells CGB
RGC’s Senior Vice President of Accreditation, Advisory and Insights, Tracy Parker, told Canadian Gaming Business earlier this year that the RGC recently updated RG Check after thorough consultation to ensure that it is a robust and relevant accreditation program that keeps up with the rapid pace of change in iGaming.

“We have found we’ve needed to talk to more people,” Parker told CGB. “It really is about the collective understanding of impact and collaboration around solutions. And that’s not just operators. We need to be talking to manufacturers and marketing affiliates, payment solution providers, leagues, athletes, coaches, university campuses, the whole ecosystem.

“New forms of gambling create new risks. I think there’s a lag in RG awareness generally, and we work on keeping pace with the evolution of the industry. It’s a constant effort to keep up.”

Open social media or scroll a website these days in Canada, and you may well find yourself staring at an advert for an online casino. Many of them are not what they seem.

In recent months, we’ve seen numerous warnings from law enforcement, gaming regulators, crown corporations and regulated caisnos about fraudulent ads. These adverts, many of which use names and photos of reputable casinos to masquerade as licensed gaming entities, look to suck the public into clicking on the ads and ultimately yielding their sensitive information.

It’s by no means a Canada-only issue. Several individual U.S.-based casinos have issued warnings in their respective states of this kind of activity, and some state regulators have issued consumer protection alerts urging residents to look out for fake online casinos.

But it’s certainly a problem pervading Canada from coast to coast.

‘Predatory and sophisticated’
As just some examples: Last year, Ontario’s Casino Rama’s name and image were used to direct the public to a website belonging to an unlicensed online casino registered to Curaçao. Earlier this year, Lotteries and Gaming Saskatchewan (LGS) was forced to remind the public that none of that province’s land-based casinos have a legitimate online version after advertising purporting to be from Dakota Dunes Casino, Casino Regina, Casino Moose Jaw and others spread on social media. And the British Columbia Lottery Corporation (BCLC) published a notice that “predatory and sophisticated scams” using the BCLC logo were claiming to offer exclusive bonuses and promotions for anyone who clicked and registered.

The fraud can also get remarkably innovative. One particularly bold social media ad took an old CityNews video report and altered the footage to use the name of Alberta’s River Cree Resort & Casino to try to attract clicks.

As Canadian Gaming Association President and CEO Paul Burns said last year, “virtually every land-based casino brand in the country has had its brand hijacked to promote fraudulent online sites.” And the number of mainstream media reports and official communications to the public would seem to suggest the problem is worsening. Or, at least, it’s not getting better.

‘A game of Whac-A-Mole’
For Great Canadian Entertainment, which operates more than 20 retail casinos across four provinces, the issue has become so troublesome that it goes as far as to keep a list on its website of known fraudulent advertising attempts concerning its properties. In the last 12 months, the company’s River Rock Casino Resort, Casino Nova Scotia, Casino New Brunswick, Casino Resort Toronto, Pickering Casino Resort and others have all been targeted numerous times, mostly via ads on Meta’s social media platforms Facebook and Instagram.

Chuck Keeling, Great Canadian’s executive vice-president of external relations and business development, told Canadian Gaming Business recently that “battle” is an apt term for the fight to tackle the issue.

“It’s a game of Whac-a-Mole. If one is forced down, another pops up.”

Great Canadian Entertainment’s Chuck Keeling

“It’s a never-ending cycle and it does seem to have picked up in recent months, based on what we’re seeing as it relates to some of our brands,” Keeling added. “And these online sites that pretend to be casinos are not operating in the shadows, either. It’s in broad daylight.”

Taking advantage of consumer confusion?
Keeling noted one example of a fraudulent ad that used “Woodbine Casino” branding to try to lure in unsuspecting people. That was never the name of that venue, which was formerly known as Casino Woodbine and was replaced by Great Canadian Casino Resort Toronto branding in 2023.

That, Keeling suggested, is indicative of the fact that the people and companies behind fraudulent casino advertising may be looking to use the public’s lack of deep knowledge about the Canadian gaming industry to their advantage. “It takes advantage of the confusion in the marketplace as to what’s a legitimate site and what isn’t.”

Great Canadian as an operator brand has “no direct online presence, full stop,” Keeling stressed.

“If they can rip off a brand like ours to give themselves an air of legitimacy, why would they not?”

Keeling

The problem is that people who are not well-informed gamblers or attentive to the industry may not know that. Similarly, not every social media scroller knows that in Ontario, all regulated commercial online casinos have to include the iGaming Ontario (iGO) logo in their adverts.

Burns said at last year’s Canadian Gaming Summit that, “in a lot of cases, the public doesn’t actually know what to look for.”

Damage both reputational and financial
It’s a problem on several fronts. As well as the evident risks to the public, whose financial details and personal information become vulnerable if they click on malevolent advertising, there’s a risk of reputational damage to the legitimate gaming operators whose names and logos are used in the fake ads.

“It really does have an impact on the reputation of the industry,” Keeling said. “But who’s getting hurt the most from this? It’s the consumers who get duped by it.”

In many cases, these adverts will use fake email addresses, domain names and website links that are very similar to the legitimate versions, sometimes even sending text messages or other alerts to people who click on links and provide basic information. Great Canadian and other operators have warned that they will never contact someone directly and ask for personal or financial information.

Still, you can’t stop every potential case.

“We get emails from people complaining that they have lost money on these sites, and there’s nothing we can do,” Keeling added. “Thankfully, we don’t get a lot of those messages but that’s the worst manifestation of this, that people are actually getting taken advantage of and losing money as a result of it.”

What can be done?
Operators like Great Canadian work closely with law enforcement to try to tackle the issue.

Those efforts are both reactive, wherein customers or observers flag instances to the relevant casino operator or to law enforcement, and proactive. Keeling noted that the Great Canadian team has taken to conducting media scans “just to see what we can pick off ourselves.”

The B.C. Ministry of Public Safety and Solicitor General told Canadian Gaming Business that one responsibility of the Gaming Policy and Enforcement Branch (GPEB) is to investigate any conduct or activity connected to gambling that could threaten the integrity of the industry. Once instances are identified, the GPEB investigates complaints or potential violations of the Gaming Control Act or the Gaming Control Regulation.

“GPEB’s Enforcement Division has been working with BCLC to identify the owner(s) of a series of social media scams impersonating B.C. casinos, along with the associated social media accounts,” said a ministry spokesperson. “We know this issue is not unique to B.C., with partners in other jurisdictions highlighting similar concerns.”

The Enforcement Division continually monitors and probes such scams and vows to take enforcement action if violations of the Gaming Control Act are identified. In some cases, the matter is referred to police if there are potential violations of the Criminal Code of Canada.

Do tech companies need to step up?
The CGA and other stakeholders have been vocal in the past in suggesting that tech giants such as Meta and Google need to take more responsibility in vetting the adverts they allow on their sites.

While Meta recently announced some more stringent requirements for gambling advertisers, Keeling acknowledged that fake casino ads are likely not top of those firms’ list of priorities. But without a firmer hand from that end, you’d say that constant game of Whac-A-Mole is likely to continue. Operators and regulators can report instances and law enforcement can pursue action in individual cases, but beyond that, the problem persists.

“It does have an impact on the reputation of the industry. But who’s getting hurt the most? The consumers who get duped.”

Keeling

“Does it trigger greater action going forward? I don’t know,” mulled Keeling. “Maybe, if the problem continues to escalate. I would like to think so because it seems so egregious and it happens in other consumer sectors too. I would like to hold out hope that the Metas and Googles will be more diligent about who is using their platforms. Ultimately, they’re the gatekeepers.

“I don’t know what else we do beyond what we’re doing already. We’re the tip of the spear. But it certainly merits attention. People are getting ripped off.”

A version of this story appears in the Summer 2025 issue of Canadian Gaming Business magazine.

As Canada’s online gaming market matures, player protection challenges are multiplying — from rising offshore activity to the ethical use of AI in responsible gambling.

The Player Protection Symposium at Canadian Gaming Summit 2025 brings together the key minds shaping regulation, technology and player safety to ask how the industry can protect players without pushing them away.

Taking place on Thursday, June 19, at the Metro Toronto Convention Centre, this focused track will unite leading policy experts, operators and responsible gambling specialists to examine how Canada’s regulatory and commercial frameworks are developing to safeguard players in a maturing market.

Six expert-led sessions will cover the full spectrum of contemporary challenges, from AI-driven player protection to national self-exclusion models. The symposium offers delegates insight into evolving policies, technologies and collaborations driving the next generation of responsible gaming in Canada.

“Protecting players should never be viewed as a compliance box to tick,” said SBC Founder and CEO Rasmus Sojmark. “It’s a complex, developing challenge that spans tech, policy, and empathy. This symposium brings together the people on the frontline of responsible gambling to share the insights that will help us build a truly sustainable gaming industry across Canada.”

The track will open with a special edition of Martin Lycka’s Safe Bet Show, featuring the very special guest, NHL legend Nick Kypreos. Kypreos will regale attendees with tales from his storied career, which included spells at the Philadelphia Flyers, New York Rangers and Toronto’s very own Maple Leafs.

Among the key panels on the track is Regulation and Responsibility: How the New Politics Affect Player Protection, which will explore what Alberta can learn from Ontario’s approach to responsible gambling and why one in five Ontario gamblers still use unregulated platforms to gamble. Craig Cornforth (Senior Business Development Manager, EPIC Global Solutions), Alistair Facciol (Vice President of iCasino, iGaming Ontario), Steve McAllister (Editor-In-Chief, The Parleh), Ryan McCarthy (Director of Player Health, British Columbia Lottery Corporation) and Geoff Zochodne (Senior News Analyst, Covers), will examine how shifting political landscapes influence player protection strategies and consider whether a coordinated national approach could reduce player reliance on unregulated markets.

Building on these regulatory themes, Self-Exclusion: A Plus for Protection or a Boost to the Black Market? will see panellists examine Ontario’s upcoming centralized self-exclusion system and assess whether it establishes an industry standard for responsible gaming or risks driving players toward unregulated markets. Aaron GlynWilliams (Chief of Staff and Head of Enterprise Strategy, Ontario Lottery and Gaming), Catherine Jarmain (Director – Operations & Player Relations, iGO), Dr. Isabelle Martin (Advanced Specialist, Corporate Office for Responsible Gambling, Loto-Québec), Tracy Parker (Senior Vice President, Accreditation, Advisory and Insights, Responsible Gambling Council), Dr. Kahlil Philander (Carson College of Business, Washington State University) and Al Watson (CEO, Dataworks Group) will explore how regulators and operators can strike the right balance between access, protection, and enforcement.

The session Technology in RG: From Targeted Messaging to AI Support will examine how artificial intelligence can transform responsible gambling measures by using behavioral data to spot at-risk players. Cory Fox (SVP Public Policy & Sustainability, FanDuel), Francesco Rodano (Chief Sustainable Gambling Officer, Playtech) and Dan Umfleet (Group CEO, Kindbridge) will discuss how their organizations are rolling out technology-driven solutions while tackling the ethical questions these tools create, including data privacy concerns, player consent issues, and the dangers of relying too heavily on automated systems when working with vulnerable individuals.

Also featured as part of the Player Protection Symposium is the session It Pays to Be Positive: Changing the Direction of Reinforcement in RG, which will unite leading experts to examine how shifting from punitive messaging to positive reinforcement can help ensure safer gambling behaviors.

The Player Protection Symposium is one of several focused content streams at the Canadian Gaming Summit, alongside dedicated tracks on Sports Betting & Casino, Cybersecurity, Affiliates & Advertising, Leaders and Payments & Compliance.

Get your tickets for the Canadian Gaming Summit!
Full Event Passes are still available at a discounted rate of $795 per person when you book as a group of three or more — saving you $200 per ticket with our Group Discount.

Operators and affiliates are eligible for free Full Event Passes, just apply via the respective links.

You can also grab an Expo Plus Pass for $195, which gives you access to all conference tracks, sessions, and the show floor. Please note: this pass does not include access to networking events.