Roblox to pay $8.6M to settle South Dakota safety probe

The settlement establishes a regulatory blueprint for how interactive streaming platforms must handle minor safety and age assurance. By mandating biometric and document-based verification, South Dakota is forcing a shift away from self-reported age data, a move that could significantly increase friction and churn for global user bases. For the broader ecosystem, this signals a transition where platform liability is no longer limited to content moderation but extends to the underlying identity stack. Industry leaders must watch for the 'Most Favored Nation' clause to trigger a domino effect as other states utilize these terms to secure identical or superior concessions. Watch for similar enforcement actions in Georgia and Connecticut, where active investigations into Roblox safety protocols are ongoing.

The South Dakota settlement follows a wave of legal and regulatory challenges regarding Roblox's safety infrastructure. In April 2026, Alabama secured a $12.2 million settlement with the company, which similarly required the implementation of facial age estimation and government ID verification. Per Forbes (April 2026), these settlements come as Roblox faces over 140 lawsuits across the U.S. alleging that its platform architecture facilitated child exploitation and grooming. State attorneys general in Kentucky and Oklahoma also filed major lawsuits in late 2025 and early 2026, accusing the company of prioritizing growth over minor safety.

Technically, Roblox has moved toward a global enforcement of these standards to mitigate further litigation. Per Daily.dev (November 2025), Roblox began a phased global rollout of mandatory age verification via third-party vendor Persona, aiming for full worldwide compliance by early 2026. This technical shift has already had a measurable impact on the company’s bottom line; in April 2026, Roblox disclosed a $1 billion reduction in its bookings guidance, citing the new age verification software as a primary driver for a projected decline in daily active users, according to Morningstar (July 2026).

In the UK, Ofcom has also pressured the platform to adopt "highly effective age assurance" under the Online Safety Act. Per Dig.Watch (May 2026), Roblox committed to tighter contact settings and AI-assisted detection tools in response to regulatory warnings about child safety. While Roblox initially characterized these measures as voluntary, the company has since institutionalized age-based chat segments and restricted messaging between disparate age groups to avoid the heavy fines—up to 10% of global revenue—authorized by UK regulators.