GME3: Dear PM, High Court Down Under & Sue-No More

In this week’s GME3, over 40 Canadian senators have written an open letterr to the Prime Minister arguing for a nationwide ban on sports betting ads, Australia’s looming social media ban faces a constitutional challenge mere weeks before it’s scheduled to take effect, and Warner Music Group has settled its copyright infringement lawsuit against the AI music startup Suno, clearing the way for Suno to launch licensed AI models starting next year. Read the full stories below!

Gambling

Dear PM

More than 40 Canadian senators have written to Prime Minister Mark Carney, urging a nationwide ban on all sports betting advertising, calling it a public health issue comparable to tobacco promotion. The letter, led by Senators Marty Deacon and Percy Downe, follows recent Senate approval of Deacon’s Bill S-211, which would create a national framework to curb the “number, scope or location” of betting ads rather than banning them outright. S-211, the successor to 2024’s S-269, has already had its first reading in the House of Commons and contemplates measures such as whistle-to-whistle ad bans during games, prohibiting betting-sponsored intermission shows, restricting in-app promotions, and strengthening national standards for preventing and treating gambling addiction.

Deacon has said she did not initially push for a full ad ban due to Charter concerns and political feasibility, but maintains that Parliament has a responsibility to correct harms stemming from the 2021 legalization of single-event sports betting. The senators argue that Canadians, including vulnerable people and youth, are being harmed by a “constant stream” of betting ads turning phones into “pocket-sized casinos.”

Industry stakeholders dispute the need for federal intervention. The Canadian Gaming Association and broadcasters point to existing AGCO restrictions in Ontario, including limits on bonuses, youth-appealing marketing and celebrity endorsements, as well as voluntary broadcaster limits on ad volume. Research from the CGA and thinkTV suggests that gambling ad volume and ad spend have declined since an initial post-2022 surge, with iGaming representing a small share of total advertising.

Media

High Court Down Under

Australia’s landmark law banning social media accounts for children under 16 is facing a constitutional challenge just weeks before it takes effect, but the federal government insists the December 10 start date will stand.

The Sydney-based Digital Freedom Project has filed a High Court challenge arguing the law is unconstitutional, calling it a “direct assault on young people’s right to freedom of political communication.” The case is being brought on behalf of two 15-year-olds by Sydney firm Pryor, Tzannes and Wallis Solicitors. A spokesperson for the group said it is not yet clear whether they will seek an injunction to delay the law coming into force while the challenge is heard.

Communications Minister Anika Wells acknowledged the lawsuit in Parliament but said the government “will not be intimidated by legal challenges” or “Big Tech,” framing the ban as a measure to protect children and support Australian parents.

Under the new regime, major platforms including Facebook, Instagram, Threads, TikTok, Snapchat, X and YouTube must take “reasonable steps” to prevent Australians under 16 from holding accounts or face fines up to AUD $50 million (~CAD $45 million). Meta has already begun warning thousands of suspected underage Australian users to download their data and delete their accounts before the deadline.

Entertainment

Sue-No More

Warner Music Group has settled its copyright infringement lawsuit against AI music startup Suno, clearing the way for Suno to launch licensed AI models starting next year. The deal follows similar settlements between Warner and Universal Music Group, and rival AI music platform Udio, signalling a shift from pure litigation toward controlled collaboration between major labels and generative music tools.

The labels had sued Suno and Udio last year, alleging the companies copied hundreds of commercially released songs to train AI systems that could generate music directly competing with human artists, “cheapening” and potentially drowning out their work. Suno and Udio argued that using copyrighted recordings for training qualified as fair use under U.S. law and characterized the lawsuits as efforts to stifle independent competition.

Under the settlement, Suno will roll out new licensed AI models that will replace its current, unlicensed versions in 2026. The company, which recently raised $250 million at a $2.45 billion valuation, will also tighten usage controls: tracks created on the free tier will be playable and shareable but not downloadable, while paid users will face monthly download limits with the option to buy additional capacity.

Suno CEO Mikey Shulman said the partnership will support “more robust features” and new ways for users to engage with professional musicians. The agreement reflects the music industry’s broader strategy of harnessing AI as a new revenue stream while using licensing and product design to protect artists’ rights in an era of increasingly convincing AI-generated music.