WHY ARE YOUR KIDS WORKING FOR FREE?

Imagine a world where “company scrip[1]” makes a digital comeback, engaging millions of young gamers through platforms like Roblox[2], where “Robux” serves as currency. Designed for in-game purchases, this virtual economy has become more than just “play money,” gaining real-world value as it is exchanged on unofficial channels, while Roblox’s underlying monetization model, which rewards user-created content with Robux, may also veer dangerously close to the edge of child labor laws.

Historically, scrip systems allowed companies to pay workers in tokens that could only be redeemed at company-owned stores with inflated prices, a setup that kept workers financially dependent. Digital currencies like Robux share some of these dynamics, where young users’ spending is contained within a closed-loop ecosystem (upon which many become fixated[3]) and can only be redeemed with limited options, most of which benefit the platform. However, Robux is distinct in that it rewards users—many of whom are minors[4]—for developing games, items, and experiences within Roblox. While this incentivizes some young developers to earn Robux through their creativity, this creativity is largely cannibalized by the company, while the currency’s restricted nature and limited cash-out options mimic the constraints of historical, physical scrip.

Unofficial markets for Robux introduce further risks. Since Robux cannot typically be converted to real money by regular users, shadow markets have emerged where Robux is traded for cash, often at a loss[5]. This unregulated exchange exposes young users to scams and exploitation, leaving them financially vulnerable[6]. Furthermore, these markets have seen instances of money laundering, with players using Robux to buy fake in-game items then transferring funds across accounts and evading oversight. Fortnite’s V-Bucks faces similar issues, with scams exploiting stolen credit cards to purchase V-Bucks that are later resold on secondary markets at a discount[7].

The Roblox monetization model raises a key question: are young users who produce in-game content for Robux part of a gamified creative economy—or are they underpaid workers in a digital economy that benefits disproportionately from their labor? Current regulations don’t yet fully address the ethical implications of monetizing user-generated content on digital platforms, especially when minors are involved. However, some common-sense safeguards can be put in place to better protect young users:

1. Implement Transparent Reporting: Platforms should publish detailed, independent audits of virtual currency metrics to ensure accurate data. This transparency builds trust and allows parents to understand how in-platform transactions work.
2. Strengthen User Safety Protocols: Age verification, enhanced parental controls, and consistent, responsible moderation of content can reduce exposure to scams and exploitation, particularly for minors developing content for these platforms.

1. Age Verification: Rigorous age verification systems can help ensure that younger users are protected from features or content intended for older audiences. This includes restricting communication options and access to monetized tools.
2. Enhanced Parental Controls: Allowing parents to set tailored restrictions on their child's account, such as limiting communication features or access to certain types of games, provides a layer of oversight without stifling the creative potential of the platform.
3. Responsible Moderation: AI-driven tools combined with human oversight can ensure fuller-scope moderation of the vast amount of user-generated content, proactively detecting scams or predatory behavior.

1. Control Virtual Currency Markets: By restricting transactions to official channels, requiring all virtual currency transactions to occur through its official platform, coupled with monitoring systems to flag and investigate unusual transaction patterns, platforms can help limit shadow markets and protect users from exploitation.
2. Promote Regulatory Advocacy: Collaboration with policymakers can establish legal guidelines for virtual economies, addressing labor concerns and ensuring protections for minors.
3. Prioritize ESG Investment: Mission-aligned investment advisors can guide investors to prioritize platforms that uphold responsible practices, fostering safe, user-centered digital ecosystems.

By promoting or directly ensuring such safeguards are in place, socially conscious investors and advisors can help create a digital economy that advances transparency, user safety, and fair compensation practices, where "play money" remains play—and young creators aren’t caught in the sticky web of virtual scrip economies.

[1] Scrip refers to a form of private currency issued by companies, often redeemable only at company-owned stores or facilities. Historically used in isolated company towns, scrip limited workers' spending options, creating dependency on the company and often leading to inflated prices and financial exploitation.

[2] Roblox is an online platform and game creation system that allows users to play, create, and share games within a virtual ecosystem. With millions of daily active users, primarily young players, it offers a broad range of user-generated games and experiences. The platform’s currency, Robux, is used to purchase in-game items and experiences, enabling a dynamic digital economy that fuels creativity and engagement while raising concerns about safety, financial transparency, and potential regulatory issues, especially given the platform’s large minor user base.

[3] https://www.washingtonpost.com/lifestyle/2021/05/25/roblox-addiction-advice/

[4] Roblox self-reported that 47% of its playerbase is 12 or younger. (29 Million Kids Under The Age Of 13 Are Playing Roblox, But Is It Safe? | Axis)

[5] Roblox Scams: What Parents Need to Know | IdentityIQ

[6] Roblox looks to dodge RICO claims of enabling kid gambling | Courthouse News Service

[7] Fortnite is so big, criminals are now using it to launder stolen money | SYFY WIRE