This week in the GME3, we’re looking at a warning from the OPP about online scams targeting Canada’s gaming industry, a rejected bid for the purchase of AI powerhouse OpenAI from Elon Musk, and controversy surrounding superstar Kanye West’s latest internet tirade, leading to him being dropped by several brands. Read the full stories below!
Gambling
404: Casino Not Found
Online scams targeting Canada’s gaming industry are on the rise, with fraudsters running fake social media ads impersonating licensed land-based casinos to steal personal data. According to the Ontario Provincial Police (OPP), these scams are widespread and often linked to organized crime, making enforcement feel like a game of “whack-a-mole.”
Lotteries and Gaming Saskatchewan (LGS) has issued a warning about fraudulent ads promoting online versions of casinos like Dakota Dunes and Casino Regina. LGS Vice President of Gaming, Steve Tunison, clarified that no land-based casino in Saskatchewan has a legal online counterpart. The only legitimate online gambling platform in the province is PlayNow.com. He urged people to avoid clicking on suspicious ads and report them to the platform on which they’re hosted.
The Saskatchewan Indian Gaming Authority (SIGA), which operates seven casinos, acknowledged the growing threat and emphasized its efforts to combat scams. SIGA spokesperson Alanna Adamko noted that criminals are using stolen logos and branding to create convincing fake ads. SIGA has been working with provincial authorities, posting disclaimers on websites and social media, training staff to inform guests, and promptly reporting scams to social media providers.
Authorities are reiterating the importance of safeguarding personal and financial information and encourage the public to stay vigilant and report fraudulent ads when they appear.
Media
OpenAI Closed for Sale
OpenAI CEO Sam Altman has rejected a $97.4 billion takeover bid from a consortium led by Elon Musk, stating that the company is “not for sale.” Speaking at the AI Action Summit in Paris, Altman emphasized OpenAI’s mission to develop artificial general intelligence (AGI) for the benefit of humanity. In response to Musk’s offer, Altman jokingly posted on X that OpenAI would buy Twitter for $9.74 billion instead.
Musk, a co-founder of OpenAI who later left after disagreements, claims he wants to return the company to its non-profit roots. However, he also owns a competing AI company, xAI, raising skepticism about his intentions. Some industry experts question Musk’s motives, pointing out that his own AI venture is structured as a for-profit entity.
Altman, who does not hold any stock in OpenAI, has pushed for a transition to a fully for-profit model to secure more funding for AI research. However, the decision ultimately lies with OpenAI’s board, which could still consider a sale, particularly if the offer is raised. OpenAI’s current valuation is much higher, with ongoing funding discussions placing it at around $300 billion.
Entertainment
Yeezy Come, Yeezy Go
Kanye West’s latest controversy culminated on Tuesday when Shopify took down his Yeezy store after backlash over a Super Bowl ad. The ad, aired in select local markets, directed viewers to a site selling a single product: a swastika T-shirt labelled “HH-01.” Shopify confirmed the removal, citing violations of its terms.
The controversy began on Friday when West, posted inflammatory remarks on X praising Adolf Hitler and identifying as a Nazi. He also defended Sean “Diddy” Combs, who is facing serious criminal charges. Following these posts, media agency USIM, which brokered the Super Bowl ad buy, severed ties with Yeezy LLC, though Fox declined to halt the ad’s airing.
The ad itself, a low-budget clip of West in a dentist’s chair, initially promoted general athletic apparel. However, after it aired, the Yeezy website was updated to showcase the offensive T-shirt. This led to widespread condemnation, including from the Anti-Defamation League, which called it further proof of West’s antisemitism.
In response, talent agent Daniel McCartney dropped West as a client, and former Shopify executives criticized the company for hosting the Yeezy store before its removal. Shopify has faced similar scrutiny in the past over controversial stores but has adjusted its acceptable use policy in recent years.
West’s spokesperson, Milo Yiannopoulos, stated that the artist continues to “redefine creativity and free expression” but provided no further comment. Maybe Shopify should have had West sign a morals clause before partnering with him.
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!
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