GME3: Borderline Ridiculous: Betting on Canada, A Model Crime & Game Delayed, Set, Match

In this edition of the GME3, we’re taking a look at the controversy over an Ontario-based gambling operator which planned to offer bets on political events in Canada, accusations of copyright infringement directed at the Chinese AI company DeepSeek by OpenAI, and the announcement of the delay of the inaugural Olympic Esports Games until 2026 at the earliest. Read on for the full stories!

Gambling

Borderline Ridiculous: Betting on Canada

An Ontario-based online gambling brand, PowerPlay.com, has reversed plans to offer bets on Canada’s political future, including whether the United States would annex the country by the end of Donald Trump’s second term. Initially, a public affairs firm reached out to CBC News to announce the proposed betting market, but a day later, the same firm stated the bet was being pulled due to unspecified “compliance” concerns.

PowerPlay operates under Ontario’s regulated online gambling market. The Alcohol and Gaming Commission of Ontario (AGCO), which oversees the industry, classifies wagers like the ones described above as “novelty events” and imposes strict criteria for their approval, including that bets must not be “reasonably objectionable.” However, the AGCO did not clarify whether betting on Canada’s future would meet that threshold.

While political betting has become a growing trend, this case highlights the regulatory challenges of wagering on real-world events. Other platforms, like the U.S.-based Polymarket, continue to offer similar bets on Canadian scenarios, including whether Canada will become the 51st U.S. state by 2025. Meanwhile, Trump’s economic threats toward Canada, including potential tariffs, remain a concern for Canadian leaders. In response, Ontario Premier Doug Ford has called a snap election, citing the need for a strong mandate to address U.S. pressures.

PowerPlay had also intended to offer odds on Canada’s federal Liberal leadership race, triggered by Prime Minister Justin Trudeau’s decision to step down. However, the controversy surrounding political betting in Ontario suggests that such wagers may face increased scrutiny moving forward.

Media

A Model Crime

OpenAI has accused competitors, including Chinese firms, of using its research to accelerate AI development. The latest concern revolves around DeepSeek, a Chinese AI model that rivals the power of ChatGPT at a fraction of the cost. Microsoft, a major OpenAI investor, is investigating whether OpenAI’s data was misused, but neither Microsoft nor DeepSeek have commented publicly.

The issue centers on “knowledge distillation,” where AI models improve by learning from existing ones. White House AI advisor David Sacks suggested that DeepSeek may have extracted knowledge from OpenAI’s models, a practice OpenAI is seeking to curb. The company has called for tighter cooperation with the US government to protect its AI innovations.

Some experts question DeepSeek’s claims of low-cost development. If the model was trained using OpenAI’s data, its efficiency claims could be misleading. However, AI research often builds on prior work, making it difficult to draw a clear line between inspiration and intellectual property theft – a challenge that OpenAI is familiar with given the many lawsuits over work that was used to train their model without explicit permission.

In addition to concerns over intellectual property, the U.S. government is also weighing the national security risks of DeepSeek. The U.S. Navy has reportedly banned its use due to security and ethical concerns. Meanwhile, DeepSeek claims to be under cyberattack and has temporarily limited registrations.

Entertainment

Game Delayed, Set, Match

The inaugural Olympic Esports Games, initially scheduled for 2025 in Saudi Arabia, has been postponed to 2026 or 2027. Organizers cited the need for additional time to establish a sustainable hosting and financing model. The delay follows concerns from game publishers about the tight timeline and uncertainties surrounding game titles, venues, and qualification methods. A new date is expected to be announced later this year.

The International Olympic Committee (IOC) has historically been hesitant about including esports due to concerns over violent content in many popular games. IOC President Thomas Bach previously stated that video games promoting violence or discrimination conflict with Olympic values. Titles like Valorant, Call of Duty, and Fortnite, which dominate the esports scene, may not align with these principles, potentially contributing to the delay.

Despite these concerns, the IOC partnered with Saudi Arabia’s National Olympic Committee in July 2024 to establish the Olympic Esports Games, with a 12-year agreement to host regular events. Bach emphasized that the partnership ensures adherence to Olympic values, including careful selection of game titles, gender equality, and youth engagement. While esports continues to gain mainstream recognition, the debate over its place in the Olympic movement remains ongoing.