RAPID CITY, S.D. (KOTA) – South Dakota has reached a $15 million settlement with Roblox that state officials say will strengthen online protections for children while providing funding for education, law enforcement and consumer protection efforts.
Attorney General Marty Jackley announced the agreement Monday, calling it a major step toward improving online safety for young users and helping parents navigate digital platforms.
The settlement includes funding that will be distributed over four years. In the first year, $2.6 million will go to South Dakota’s Internet Crimes Against Children Task Force. During the second and third years, the South Dakota Department of Education will receive $2.5 million annually, with 20% of the funding dedicated to government and nonprofit after-school programs.
The final year includes $1 million for the Attorney General’s Consumer Protection Fund to support future investigations and enforcement actions. South Dakota could also receive up to an additional $5.4 million if Roblox fails to comply with the agreement.
Roblox will also fund a two-year, $1 million public education campaign focused on online child safety.
Gov. Larry Rhoden said the settlement reflects the state’s commitment to protecting children both online and offline.
The agreement also requires Roblox to implement several new child safety measures.
Among the changes are mandatory age verification for users seeking access to chat features using facial age estimation technology and government-issued identification. Parents will gain expanded tools to monitor communications, manage game access and restrict virtual currency transfers.
The settlement also limits communication between adults and minors. Adult users and users younger than 16 will only be allowed to chat if they are designated as trusted friends, while children younger than 13 will need parental consent to establish those connections.
In addition, Roblox agreed not to allow encrypted communications involving minors, a provision state officials say will help law enforcement investigate child exploitation and other online crimes.
The agreement includes a “most favored nation” provision, ensuring South Dakota receives any stronger terms Roblox may later agree to with other states.
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