This week’s edition of the GME3 covers how the CFL’s announcement of their first authorized gaming operator partner could lead to changes in Canada’s sports betting ecosystem, the potential privacy ramifications of Meta’s new Twitter competitor Threads, and an update on the Microsoft-Activision merger, which has the potential to shake up the video game industry.
Gambling
Game-Changer for Canadian Sports Betting
The Canadian Football League has kicked off (sorry) its Authorized Gaming Operator (AGO) program by announcing FanDuel as its first AGO. As an AGO, Fanduel will be able to provide its customers with official CFL data and will have access to unique marketing opportunities with the league. We are big supporters of the CFL at GME Law (go Bombers!) and are looking forward to the upcoming enhanced fan experiences. In addition to its AGO Program, the CFL has further demonstrated its commitment to the integrity of its games by developing and implementing its match manipulation policy earlier this year.
After years of ambivalent relationships with sports betting, sports leagues have recently embraced opportunities for collaboration with sports betting providers. FanDuel is the first member of the CFL’s AGO program and we are confident that it won’t be the last.
Media
Threads Weaves Data Concerns
Meta’s Twitter competitor, Threads, has reached 100 million users since it launched earlier this month. However, privacy experts are concerned about the growth of the app, as most users are unaware of how much of their data it collects. Meta has even put the EU launch on hold due to new privacy regulations that are pending approval from the Council and the European Parliament.
Meta has previously been subject to enforcement from the Federal Trade Commission (“FTC”) for improper collection and use of data in the US and has also been fined in the EU for violating the General Data Protection Regulation. While other social media apps (like Twitter) also collect data on their users, Meta’s suite of apps gives them access to information at a level that few companies can match.
Properly understanding, and complying with, privacy law is crucial to anyone wanting to operate a business over the Internet. Social media platforms, gaming providers, and even lowly legal blogs all need to have privacy policies in place to ensure that all information is collected, stored, and used properly. If you need help with your privacy policy, reach out to privacy expert Zack Pearlstein at zack@gmelawyers.com.
Entertainment
FTC Foiled! Microsoft Merger Continues
Microsoft has emerged victorious in its most recent court battle with the FTC, as the FTC failed to secure an injunction to hold up the merger between them and Activision-Blizzard. While there will still be an antitrust trial held in August of this year, the companies are free to move ahead with the acquisition in the meantime.
The basis for the FTC’s argument was that this merger would lead to anti-competitive business practices, but they failed to persuade Judge Jaqueline Scott Corley. In her ruling, she writes:
“The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets.”
Conversely, Xbox head Phil Spencer and Activision CEO Bobby Kotick have both released statements about how they believe that the merger would benefit both consumers and workers in the videogame industry by making Activision-Blizzard and Microsoft games available to more players, and on more platforms, around the world.
The FTC has until July 14 to appeal Judge Corley’s decision and the merger has a contractual deadline of July 18, unless both companies agree to extend it. We should see more news about this historic deal soon, so make sure you follow us on LinkedIn to stay updated on the most relevant gambling, media, and entertainment stories!
GME Law is Jack Tadman and Zack Pearlstein. 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.
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.
Check out some of our previous editions of the GME3 HERE and HERE, and be sure to follow us on LinkedIn to be notified of new posts, keep up to date with industry news, and more!
