GME3: Robuck-ing the Trend, ByteDance Battles the Ban & Fishy Business: Bet Regret

For the final GME3 of 2024, we’re taking a look at a Sky News report revealing the extent to which illegal casinos target underage users through the popular game Roblox, TikTok’s final attempt to postpone the impending ban in the U.S. in 2025, and the censure of an esports athlete for violating Riot Games’ Code of Conduct by placing a bet during the League of Legends World Championship final. Read the full stories below!

 

Gambling

Robuck-ing the Trend

 

An investigation by the U.K. news outlet Sky News has uncovered illegal online casinos exploiting Roblox, a popular gaming platform with millions of young users, to lure children as young as 12 into gambling. These unlicensed sites, like BloxFlip, Bloxmoon, and RBLXWild, allow users to wager Roblox’s in-game currency, Robux, on games such as slots and blackjack, which can then be converted into cryptocurrency and cashed out. Despite basic age verification steps, no safeguards prevent children from accessing these sites.

 

One user, going by Robert, started gambling at age 14 and has wagered close to 15 million Robux (£150,000). He described the thrill of high-stakes gambling but admitted he had no idea it was illegal. Sky News reports these casinos generate millions in revenue by preying on underage users. For instance, Bloxmoon alone facilitated $22.3 million in bets over six months.

 

The UK’s Gambling Commission has responded by blocking these websites and initiating investigations. Roblox, meanwhile, has condemned the casinos, emphasizing that they violate its terms of use and pledging cooperation with law enforcement. However, some sites, like Bloxmoon and RBLXWild, quickly reappeared under new domains.

 

This issue has also sparked a class-action lawsuit in the U.S., accusing Roblox of negligence in failing to protect children from these platforms. Experts warn that early exposure to gambling can lead to long-term addiction risks. While some casinos have shut down following the revelations, the challenge of holding their operators accountable persists. Both parents and regulators are urged to remain vigilant as the fight against these exploitative practices continues.

 

Media

ByteDance Battles the Ban

 

TikTok and its parent company, ByteDance, have asked the U.S. Supreme Court to block a federal law that would ban the app in the United States unless ByteDance divests from TikTok. The law is set to take effect on January 19, 2025. The companies, along with content creators reliant on the platform, argue that a delay is necessary for the court to review the case and for the incoming administration to reassess the situation. They emphasize the platform’s importance as a communication tool for its 170 million U.S. users and warn that a shutdown could cause significant losses in both advertising revenue and user base.

 

The case raises critical legal questions, including First Amendment concerns about free speech and the government’s claims about national security risks due to TikTok’s ties to China. A federal appeals court recently upheld the law, prompting TikTok to escalate the matter to the Supreme Court. The request will first go to Chief Justice John Roberts, who may seek input from the full court.

 

President-elect Donald Trump, who previously supported a ban, has expressed a softer stance on TikTok, seeing it as a valuable tool for engaging younger voters. His Justice Department’s approach to enforcement remains uncertain, with potential for leniency.

 

If the Supreme Court rejects TikTok’s emergency appeal, the ban would proceed, with app stores and hosting services facing penalties for offering the app. TikTok’s lawyers have requested a decision by January 6, 2025, to allow time for an orderly shutdown.

 

Entertainment

Fishy Business: Bet Regret

 

Riot Games, developers of popular titles like League of Legends and VALORANT, has issued a warning to Team Heretics’ VALORANT player Benjamin “benjyfishy” Fish for violating its Global Code of Conduct by placing a bet during the League of Legends World Championship final. The former Fortnite pro wagered on the match between T1 and Bilibili Gaming, winning €100. Riot’s Global Code of Conduct prohibits esports professionals from gambling on any Riot-owned title, regardless of legality.

 

The incident was self-reported by benjyfishy, who informed his organization, Team Heretics, which then notified Riot. In addition to his proactive approach. Riot acknowledged several mitigating factors that contributed to a reduced punishment. This includes benjyfishy’s cooperation, his voluntary decision to “donate a sum to charity”, and the lack of direct impact on VALORANT’s competitive integrity, as the bet involved a game and region unrelated to his own competitive play.

 

The ruling, issued on November 28, came shortly before Riot opened the door to betting sponsorships, underscoring the timing of this situation. Despite the violation, benjyfishy avoided harsher consequences due to his transparency and the low-risk nature of the bet, receiving only a formal warning.

GME Law is Jack Tadman, Zack Pearlstein, Lindsay Anderson, Daniel Trujillo, 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!

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