GME3: Curb Your Engagement, Hack to School & TikTok Turnaround

Welcome back to the GME3! For this week, we’re taking a look at the AGCO’s announcement that they are coordinating efforts to further limit engagement with Ontario’s unregulated iGaming market, a serious privacy breach affecting 19 schoolboards across Canada, and the return of TikTok from its multi-hour-long hiatus. Read the full stories below!

Gambling

Curb Your Engagement

The Alcohol and Gaming Commission of Ontario (AGCO) has announced efforts to further curb engagement with the unregulated iGaming market in Ontario and beyond. In its 2023-2024 annual report, the AGCO highlighted its collaboration with international jurisdictions to address grey market activities and develop a comprehensive strategy to restrict access to the unregulated market while increasing public awareness.

This strategy likely involves working closely with operators, suppliers, and stakeholders in Ontario’s regulated gaming industry, and fostering communication with other provinces and their respective regulatory bodies. The AGCO has emphasized the importance of these partnerships, with AGCO’s Raymond Kahnert confirming ongoing collaboration to combat unlicensed gaming and build on the early success of “channelization.”

Channelization efforts have been effective, with an Ipsos survey revealing that over 85% of online gamblers in Ontario use regulated platforms. While these figures are slightly outdated, research from H2 Gambling Capital indicates that by late 2024, unregulated operators accounted for just 7% of Ontario’s online casino and sports betting revenue, compared to 77% held by commercial operators and 16% by OLG.

The AGCO is also observing U.S. strategies, where regulators have pressured offshore operators through cease-and-desist campaigns. In Canada, similar actions are taking shape, as evidenced by Antigua-based Bodog’s withdrawal from Nova Scotia last year. These efforts underscore Ontario’s commitment to consolidating its regulated gaming market and minimizing the influence of unlicensed operators.

Media

Hack to School

Canada’s privacy commissioner is investigating a data breach involving PowerSchool, a widely used software for managing student information. The breach, discovered on December 28, exposed sensitive data, including personally identifiable information like social security numbers and medical details, according to PowerSchool. The company is working urgently to determine the scope of the breach and identify affected individuals. Canadian school boards in Ontario, Alberta, Newfoundland and Labrador, and Nova Scotia are collaborating with PowerSchool to assess the impact.

John Zabiuk, a cybersecurity expert from NAIT Polytechnic, warned that leaked information, even as basic as names and birthdates, could enable identity theft or other malicious activities. If social insurance numbers were accessed, the data could be exploited to create accounts or damage individuals’ credit histories. PowerSchool assured that not all customer data included highly sensitive information, and there’s no evidence of banking or credit card details being compromised.

The Ontario Privacy Commissioner’s office confirmed receiving breach reports from 19 school boards and expressed concern about the potential exposure of sensitive data. Some school boards have reported specific data accessed, such as names and contact details, while others are still investigating. In the wake of the breach, experts stress the importance of educating children about online safety and vigilance against potential scams.

PowerSchool acknowledged flaws in its system architecture that allowed unauthorized access to multinational data and emphasized the need to enhance its security measures to prevent future incidents. The breach highlights the growing risks associated with storing sensitive data online and the critical need for robust cybersecurity practices.

Entertainment

TikTok Turnaround

TikTok announced it was restoring its services in the U.S. after President-elect Donald Trump pledged to reinstate the app’s access upon his return to office. The platform, which had ceased operations following a law banning it over national security concerns, credited Trump with providing assurances to service providers and users. The law, which took effect Sunday, sought to sever ties between TikTok’s parent company, ByteDance, and China, citing risks of data misuse.

Trump stated he would delay the law’s enforcement to negotiate a deal safeguarding national security and proposed a joint venture with 50% U.S. ownership. In the meantime, TikTok thanked Trump for ensuring there would be no penalties for companies supporting the app during the transition. The app, which has over 170 million U.S. users and supports millions of small businesses, had briefly disappeared from app stores before service restoration began.

However, some Republican lawmakers, including Senators Tom Cotton and Pete Ricketts, opposed any extensions or loopholes, insisting that ByteDance must sever ties with China to comply with the law. They emphasized that the law required qualified divestiture to ensure national security.

This move marks a significant shift in Trump’s stance on TikTok, which he sought to ban during his first term over alleged ties to the Chinese government. Now, he credits the platform with helping him engage younger voters during the 2024 presidential election, signalling a softer approach toward the app.