GME3: Alberta’s Game Plan Unfolds, Taking “Face” Out of the Book, & Kid-Proofing the Net

For this week’s GME3, we have an update on the upcoming launch of Alberta’s regulated igaming market, a significant settlement in a suit between Meta and the state of Texas, and two new privacy bills that have made their way through the American Senate. Read the full stories here!

Gambling

Alberta’s Game Plan Unfolds

Alberta continues to move towards the launch of its own “Ontario-style” regulated igaming market, and this week we have a short update on how the rollout is proceeding. While an exact date for the launch has not been released yet, according to Dale Nally, the Minister of Service and Red Tape Reduction for Alberta, “people are going to be surprised by how fast [they] get this done.”

With that in mind, where is Alberta in the process? Consultations with Alberta’s First Nations on the new regulatory regime have now been completed. The next step is to consult land-based casinos, followed by racetrack operators.

While the process seems to be chugging along smoothly, there are still a significant number of unanswered questions concerning the final form Alberta’s igaming market will take. What will the tax rate be? How will they approach sports betting advertising? How will they deal with the grey market? Alberta has the benefit of having been able to observe the rollout of the Ontario market, and, as such, has the opportunity to learn from our “mistakes” (in quotes because, by all accounts, the Ontario market is flourishing).

It’s unlikely that Alberta will take the exact same approach, considering the demographic differences in Wild Rose Country. For one, Alberta has a younger population than Ontario, with higher incomes, lower taxes, and a more manageable cost of living. That means more disposable income among a population that, according to Nally, “loves their sports.” The Edmonton Oilers, Calgary Flames, as well as the Edmonton Elks and Calgary Stampeders, are all very popular teams. Just look at the Oilers’ 50/50 draw during the spring’s Stanley Cup run. The jackpot reached $16 million, making it the largest 50/50 for a hockey team in Alberta history.

With the expected popularity of the Alberta igaming market, the province has put a significant amount of emphasis on responsible gaming. As such, consultation with Alberta’s Responsible Gambling Council has already begun. While no concrete details are available yet, Nally has stated that responsible gaming will be “the most important pillar that we will have in the launch of our igaming strategy.”

Alberta’s journey toward establishing a regulated igaming market is progressing steadily, with key consultations already underway and more planned in the near future. While there remain many unknowns about the final structure of the market, Alberta is well-positioned to learn from Ontario’s experience while tailoring its approach to the unique demographic and economic landscape of the province. With a strong emphasis on responsible gaming and the enthusiastic support of its sports-loving population, Alberta’s igaming market is poised for a successful launch.

Media

Taking “Face” Out of the Book

In the largest legal settlement ever secured by a single state, Meta has agreed to settle a Texas privacy lawsuit to the tune of USD $1.4 billion after allegedly using the biometric data of users without their permission.

Originally filed in 2022, the Texas suit claimed that Meta was in violation of a state law that prohibits capturing or selling a resident’s biometric information, such as their face or fingerprint, without their consent. The feature, which was used to automatically recognize people in photos and suggest users “tag” them, was officially retired in 2021 amid growing privacy concerns and the potential for misuse of this technology. Meta’s database containing “faceprints” of over a billion people was deleted as a result. Meta faced a similar suit in 2021, after being accused of similar privacy violations in Illinois.

Meta has commented, stating that they “are pleased to resolve this matter, and look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centres.” While $1.4 billion sounds like a lot of dough, it’s only a drop in the bucket for Meta, which made a profit of $12.37 billion in the first three months of 2024. As a result of the settlement, Meta’s stock dipped less than one percent.

This landmark settlement underscores the growing importance of digital privacy and the legal consequences of misusing biometric data. While the $1.4 billion is relatively insignificant for Meta, it sets a strong precedent for tech companies handling personal information. As Texas pursues a similar case against Google, the impact on privacy rights could be profound.

Entertainment

Kid-Proofing the Net

Earlier this week the U.S. Senate overwhelmingly voted to pass two bills. Both the Kids Online Safety Act (KOSA) and the Children and Teens’ Online Privacy Protection Act, (also known as COPPA 2.0), aim to expand online safety and privacy protections for children.

Approved after a vote of 91-3, these bills would force online platforms to take steps to prevent harm to children, such as bullying, drug addiction, and sexual exploitation, while also broadening existing federal privacy protections to include kids 16 years old or younger. These are the most restrictive pieces of tech legislation to pass through Congress in decades.

The next step is for these bills to clear the House, which may be easier said than done. House lawmakers have been pushing for a broader, more comprehensive data privacy bill that would increase protections for all Americans, not just the youth. This different approach has come into direct conflict with KOSA and COPPA 2.0, bogging down negotiations and delaying attempts to get any legislation over the finish line.

While these two bills have received widespread support from child safety advocates, youth activists, and parents whose children’s deaths were linked to social media, some are apprehensive about the unintended side effects it could have. Tech groups have opposed the legislation on the grounds that it will hamper free speech online while also forcing companies to collect even more data from users to comply with its obligations.

Senator Ron Wyden, one of three dissenters in the vote, is concerned that KOSA could be weaponized to censor information about topics like gender-affirming care, abortion, racial justice, or climate change. This concern has been mirrored by the liberal activist group Fight for the Future. 

While the overwhelming Senate approval of KOSA and COPPA 2.0 marks a significant step towards enhancing online safety and privacy for children, the road ahead remains challenging. The bills face an uncertain future in the House, where broader data privacy concerns could stall progress. Even if passed, these measures will likely encounter legal challenges from tech advocacy groups, making their implementation a contentious issue in the coming years.