This week’s GME3 includes lessons that we can learn from the heavy fine levied against gaming operator Betfred in the UK, an impending ban on behavioral advertising on social media platforms in Norway, and a critical update from striking union SAG-AFTRA that all influencers should be aware of. Read on for more!
Gambling
This is Fine
The UK Gambling Commission recently issued a £3.25 million fine (USD $4.17 million) to gaming operator Betfred. This is a result of an investigation that revealed a number of social responsibility and anti-money laundering (AML) violations that took place between January 2021 and December 2022.
These violations included:
Having no method to monitor or reduce high-velocity spend or duration of play, which exposed users to higher potential losses, and
Taking the opinion that winning customers were not at risk of harm. As a result, the company did not carry out any safer gambling interactions with a customer who wagered £517,499 over two years.
Betfred was also found to have breached many AML rules, such as insufficient record keeping, setting financial alert thresholds too high, not properly collecting KYC information from users, and not verifying the information they did collect through proper channels.
The Commission’s director, Kay Roberts, stressed that, though gambling is a legitimate and safe form of entertainment for many, real harm can be done to consumers if safeguards are ignored.
Fines for operator non-compliance are becoming more prevalent globally. In Ontario, nine operators have been fined by the Alcohol and Gaming Commission of Ontario (AGCO) for various infractions since the market opened in April 2022. The increasing global prevalence of operators being fined is one of many reasons why having reliable local counsel is critical to navigating regulated markets. If you have any questions about regulated gaming in Ontario or elsewhere, reach out to Jack at jack@gmelawyers.com and we’ll help you out!
Media
Meta Ban Plan
Social media giant Meta is also facing the potential of heavy fines over advertising practices in Norway. Norwegian regulator Datatilsynet has taken the position that engaging in behavioral advertising (in which companies collect information on consumers such as location, likes, and more) without express consent is illegal. As a result, they are imposing a ban on such practices, which will impact Meta platforms Facebook and Instagram starting on August 4, 2023. If Meta fails to comply, it risks incurring fines just shy of USD $100,000 per day.
Meta has faced similar issues in Europe before – in December 2022, the Irish Data Protection Commission ordered them to bring its advertising practices in line with European law by April of this year. Furthermore, Meta’s new platform, Threads, remains unavailable in Europe due to concerns about user data collection.
The ban is planned to last for three months, or “until Meta can show that it complies with the law”. However, it’s also possible that the ban will be extended or evolve into a permanent prohibition on behavioral advertising in Norway, as Datatilsynet may elevate the case to the European Data Protection Board. If they do so it could lead to wider ramifications across the continent as a whole. If you use targeted advertising on Meta platforms as part of your marketing strategy, keeping up to date on this case should be a priority for you.
Entertainment
Promotion Purgatory: Influencers Strike Out
In our final story for this week, social media influencers may want to reconsider taking any work to promote films or TV series at the moment due to strike rules issued by SAG-AFTRA. Influencers who are members of the guild have been prohibited outright from taking on any promotional work from studios or streaming platforms. Furthermore, any non-members who do so will be barred from joining the guild at any point in the future.
As it says on the SAG-AFTRA strike website, “Any non-member seeking future membership in SAG-AFTRA who performs covered work or services for a struck company during the strike will not be admitted into membership in SAG-AFTRA.” The note on the SAG-AFTRA website also states that any influencers who are already under contract to promote struck work should fulfill their work obligations.
This will cause a headache for studios, which commonly use influencers to market their products on social media platforms like TikTok and Instagram. Influencers who may want to one day work in the film or TV industry should be careful how they approach the coming months. SAG-AFTRA recommends sticking to branding deals, and, if possible, avoiding posting about struck work, even organically. If you’re an influencer wondering how to navigate working during the strike, reach out to Zack Pearlstein at zack@gmelawyers.com!
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!
