This week in the GME3 we have a surprising update to New York’s Daily Fantasy Sports regulations, a shocking study that shows how data collected from children is used, and a new effort from the CRTC to regulate platforms that host user-generated content on the internet. Read the full stories below!
Gambling
NY DFS Rules Picked Apart
Earlier this week the New York State Gaming Commission (NYGC) met to approve new rules regarding Daily Fantasy Sports (DFS). Despite pushback from well-known operators, including Underdog Fantasy and PrizePicks, the new rules exclude Pick Em’-style DFS from the New York gaming ecosystem.
DFS was first legalized in New York under then-governer Andrew Cuomo in 2016. This decision resulted in a court case (White v. Cuomo), in which the government emerged victorious, clearing the way for regulated DFS in the state. However, the final regulations would need to be drafted before any new companies would be allowed to apply for registration (DFS businesses that existed before November 2015 were allowed to continue operating in the interim).
The NYGC released draft regulations in July 2022 and asked for public comment before moving forward. The draft regulations included the following requirement: “…contests shall not be based on proposition betting and shall not have the effect of mimicking proposition betting.”
Providers and fans of Pick Em’-style DFS protested, with companies making public comments and users sending over 4,000 letters to the NYGC asking them to reconsider.
Sports betting giants FanDuel and DraftKings have also fought to exclude Pick Em’-style DFS from the regulations. In an open letter, Underdog founder Jeremy Levine had this to say about their actions:
“What do monopolists do when they are afraid of competition? They use their money, power and influence to target competitors. … That’s the playbook FanDuel and DraftKings are following, leaning on backroom lobbyists and pressing business partners to do their dirty work for them. It’s a classic play for entrenched big businesses who are afraid of competition.”
Whether or not that’s the case, it’s interesting to observe how the NYGC is approaching Pick Em’-style DFS. It seems like some operators plan to continue to offer their services to players, but hope to stay in compliance with the New York regulations. Be sure to follow GME Law on LinkedIn for updates as this story continues to develop!
Media
Unhappy Meals
A new study from the University of Ottawa found that “unrelenting” ads from fast food chains target kids based on data collected from apps.
Researchers began by looking at the privacy policies and terms and conditions of 26 Canadian fast food and delivery apps. From there, they recruited children between the ages of nine and twelve to order food from five apps. Later, the guardians of the children made requests to the companies regarding the data collected about their children. Less than half of these apps provided said information, leaving a lot of questions about what data is being collected about children, and how it’s being used.
The Canadian government has expressed its intent to create new regulations by the end of 2024 to help control how much kids are exposed to fast food advertising. “It’s time for the government to protect kids from the lure of junk food marketing everywhere they live and play including in digital spaces. A healthier future for our children is possible and government regulation is key,” head researcher Monique Potvin Kent says.
This is the latest development in issues related to privacy and data collection online. Between new privacy legislation in Europe, heavy fines being levied against TikTok for privacy violations, and even the controversy surrounding former Maple Leafs head coach Mike Babcock, privacy is certainly a hot-button issue. If your business needs help reviewing its privacy policy, reach out to Zack here at GME Law.
Entertainment
Web Content Crackdown
The Canadian Radio-television and Telecommunications Commission (CRTC) has announced that all online services that provide audio or video content will have to register with them by November 28, 2023, provided they meet a revenue threshold.
The list of services affected by this decision includes:
Streaming services
Social media platforms
Web-based television services
Radio stations
Live-streaming services
Podcast services
However, they note that “video game and audiobook services are exempt, as are those platforms that have “less than $10 million in annual broadcasting revenues in Canada.”
This decision is part of implementing the CRTC’s Online Streaming Act (Bill C-11), which drew controversy over its stated intention of regulating user-generated content. The government has since clarified that it will not be forcing users or content creators to register with the CRTC, just the platforms themselves.
In a statement, the CRTC said that it is “clear at this point that social media platforms play a large and increasingly dominant role in terms of the Canadian online broadcasting advertising market. This alone would seem to point towards a need to register such services to enable the Commission to gather further information and monitor their impact, where necessary.”
Between this move by the CRTC and the federal government’s attempt to get increased compensation for news networks earlier this year, it seems like the Canadian government intends to take a harder stance on how the internet interacts with Canadian media. Whether we’ll achieve the intended goals or not remains to be seen.
GME Law is Jack Tadman, Zack Pearlstein, Lindsay Anderson, and Will Sarwer-Foner Androsoff. Jack’s practice has focused exclusively on gaming law since he was an articling student in 2010, acting for the usual players in the gaming and quasi-gaming space. Zack joined Jack in September 2022. In addition to collaborating with Jack, and with a keen interest in privacy law, Zack brings a practice focused on issues unique to social media, influencer marketing, and video gaming. Lindsay is the most recent addition to the team, bringing her experience as a negotiator and contracts attorney, specializing in commercial technology, SaaS services, and data privacy.
At our firm, we are enthusiastic about aiding players in the gaming space, including sports leagues, media companies, advertisers, and more. Our specialized knowledge in these industries allows us to provide tailored solutions to our clients’ unique legal needs. Reach out to us HERE or contact Jack directly at jack@gmelawyers.com if you want to learn more!
Check out some of our previous editions of the GME3 HERE and HERE, and be sure to follow us on LinkedIn to be notified of new posts, keep up to date with industry news, and more!
