South Dakota Reaches Million-Dollar Child Safety Settlement With Roblox Corporation

The Government of South Dakota reached a settlement with the gaming platform Roblox Corporation to enhance online child protections and secure funding for state agencies. Under the agreement, Roblox Corporation will provide a guaranteed $8.6 million over four years, distributed among the South Dakota Internet Crimes Against Children Task Force, the Department of Education, and the Attorney General’s Consumer Protection Fund. The company will also fund a $1 million public awareness campaign on child safety lasting two years. While some sources report the total settlement value at $15 million, the guaranteed agency funding remains $8.6 million.

Roblox Corporation must implement mandatory age verification using government IDs and facial estimation technology. The platform is required to expand parental controls over chats and experiences, restrict adult-to-minor communications, and prohibit encrypted communications involving minors to assist law enforcement. A most favored nation clause ensures South Dakota receives any superior terms Roblox Corporation may agree to with other states. Non-compliance penalties are reported between $5.4 million and $54 million.

Attorney General Marty Jackley announced the deal in Sioux Falls, positioning it as a national model for online safety. Other state leaders, including Lieutenant Governor Tony Venhuizen and Education Secretary Joseph Graves, emphasized the effectiveness of the funding for state agencies and after-school programs.