GME3: iGO? More Like iGROW, Once Upon a Settlement & Rob-Locked in Litigation

In this week’s GME3, we’re looking at the most recent report on the success of Ontario’s iGaming market, a landmark $1.5 billion settlement in the copyright case between AI company Anthropic and a coalition of authors and publishers, and a Canadian lawsuit launched against Roblox, alleging that the platform is deliberately designed to be addictive and financially exploitative towards children. Read the full stories below!

Gambling

iGO? More Like iGROW

Ontario’s regulated iGaming market posted a record-breaking August, with iGaming Ontario (iGO) reporting nearly $8.14 billion in wagers – a 34.6% increase from the same month in 2024 and the second time ever the market has surpassed $8 billion in handle. Operator revenue reached $334.8 million, up 40.5% year-over-year, marking the second-highest monthly total since launch. Active player accounts climbed to 1.016 million, a 41.5% annual increase, with an average monthly revenue per account of $330.Online casino play continued to dominate, accounting for 89% of wagers and 80% of revenue. For the first time, iCasino handle topped $7 billion, producing $267.8 million in revenue, both new highs. 

Sports betting, though smaller, also rebounded in August. Bettors staked $765 million, a 15.2% increase from last year and 11% higher than July, though still low compared to other months. Licensed sportsbooks generated $60.2 million in revenue, up 28.4% year-over-year, helping reverse weaker summer earnings. Peer-to-peer poker maintained its usual 2% share of both handle and revenue.

These figures demonstrate the continued strength of Ontario’s online casino vertical. Meanwhile, new market entrants and a recovering sports betting segment suggest competition and consumer engagement remain on an upward trajectory. iGO’s data does not include Ontario Lottery and Gaming (OLG) platforms, whose results will be reported separately later this year.

Media

Once Upon a Settlement

A U.S. federal judge has approved a landmark $1.5 billion settlement between AI company Anthropic and a coalition of authors and publishers who alleged that nearly half a million books were illegally pirated to train Anthropic’s Claude chatbot. The deal, approved Thursday by District Judge William Alsup in San Francisco, will pay around $3,000 per book to affected authors and publishers, though it does not extend to future works.

The settlement follows months of scrutiny from Alsup, who raised concerns about fairness, transparency, and whether lesser-known authors might be sidelined. He pressed both sides to demonstrate that robust notice and a clear claims process would ensure all eligible participants could claim their share or opt out without coercion. The parties assured the court that the arrangement avoids “back-room” deals and respects existing publishing contracts. Attorneys for the plaintiffs argued the agreement is consistent with due process and designed to achieve a high claims rate.

The case stems from allegations that Anthropic sourced millions of books from pirate websites to build its AI, even though Alsup previously ruled in June that training on copyrighted material itself was not inherently illegal. The plaintiffs – led by bestselling author Andrea Bartz – emphasized that the settlement sends a powerful message to AI developers about respecting intellectual property rights. 

The agreement represents one of the largest financial resolutions in the ongoing wave of litigation between creative industries and AI companies.

Entertainment

Rob-Locked in Litigation

A 12-year-old from Kamloops, B.C., has filed a proposed class-action lawsuit against Roblox, alleging the gaming platform is deliberately designed to be addictive and financially exploitative. Filed in B.C. Supreme Court on behalf of the child, identified only as D.J., the claim seeks to represent Canadians who say they are addicted to Roblox, as well as minors who purchased Roblox Premium memberships. D.J.’s father, who initiated the suit, says the child has been playing since age five or six, spends about two hours daily on the game, and has spent between $300 and $500 on Robux, the in-game currency.

The lawsuit claims Roblox fosters addictive behaviours, citing symptoms such as anxiety, depression, irritability, fatigue, and loss of social skills. It argues the company uses algorithms to prolong gameplay and encourage microtransactions, including “gambling-like mechanisms” resembling loot boxes, and prioritizes monetization over user safety. It also accuses Roblox of failing to disclose harmful design elements, offering limited parental controls, and maintaining an ineffective age-verification system.

Roblox, which has tens of millions of users worldwide and hosts both user-created games and branded experiences, has not yet filed a response. None of these allegations have been tested in court, and the class action requires certification before moving forward. Experts note that the lawsuit highlights broader concerns over microtransactions in online games, with some comparing loot boxes to slot machines. The suit seeks restitution for minors who spent money on Roblox Premium or Robux, while raising questions about whether gaming companies may be held legally responsible for addiction-related harms.