GME3: Trading Blows But Not Goods, Game of Phones: Class Action & Rated E for Exploitation

For this week’s GME3, provincial governments are taking bold steps to counter trade tensions with the U.S., reshaping how gaming equipment is sourced. Meanwhile, school boards are taking on tech giants over the impact of social media on students, and investigations reveal troubling gaps in child data protection within mobile games. Read the full stories below!

Gambling

Trading Blows But Not Goods

Canada’s gaming industry is feeling the impact of ongoing trade tensions with the U.S. In response to American tariffs and economic measures under President Donald Trump, several Canadian provinces have moved to limit or ban the purchase of gaming equipment from U.S.-based suppliers.

Alberta has taken a firm stance, with its gaming regulator, AGLC, announcing that it will only purchase slot machines and video lottery terminals (VLTs) from companies with local support services or those based in countries with a free trade agreement with Canada. Saskatchewan followed suit, instructing its gaming authority to source new slot machines and VLT upgrades from non-U.S. suppliers, affecting approximately $43 million in procurement.

British Columbia has adopted a similar policy, prioritizing Canadian and non-U.S. products for government purchases, including those made by its gaming regulator, BCLC. However, in B.C. the province has also introduced an exemption process for cases where no alternative suppliers exist.

On the East Coast, Nova Scotia has gone even further, banning American companies from bidding on provincial contracts and looking for ways to cancel existing agreements. Manitoba has implemented the Buy Canadian Act, giving preferential treatment to Canadian suppliers in all government purchases.

The broader effect of these restrictions is significant, as Canada accounts for 16% of total North American sales of slot machines and VLTs. While these policies aim to protect local industries, they could also disrupt supply chains and raise costs for gaming operators.

Media

Game of Phones: Class Action

A group of Ontario school boards is moving forward with its lawsuit against Meta, Snapchat, and TikTok after a judge rejected the tech companies’ attempt to dismiss the case. The lawsuit, led by the Toronto District School Board on behalf of 14 boards and individual schools, claims that social media platforms are negligently designed to be addictive, negatively affecting students’ mental health, behaviour, and learning. While the allegations remain unproven in court, the judge acknowledged that an “addictive product” interfering with education and well-being could be considered a public nuisance.

The plaintiffs argue that social media has significantly disrupted the education system, forcing schools to allocate more resources to address issues like digital literacy, cyberbullying, and online harassment. Teachers are also spending more time helping students identify misinformation. The group, Schools for Social Media Change, views the ruling as the first step in achieving justice for the education system and future generations.

The lawsuit seeks over $8 billion in damages and demands platform redesigns to better protect students. Meta, Snapchat, and TikTok maintain that they prioritize user well-being and have introduced various safeguards, though they deny the allegations brought forward by the suit. While Snapchat highlights its unique design to minimize harmful engagement, Meta points to parental controls and protective measures on Instagram. TikTok has not responded to recent inquiries. The school boards have stated they will only bear legal costs if the case succeeds.

Entertainment

Rated E for Exploitation

A CBC Marketplace investigation has revealed that many mobile games exploit loopholes in privacy regulations to collect and sell children’s data without parental consent.

Many parents rely on app store ratings to assess a game’s suitability, yet these ratings often don’t align with the developers’ privacy policies. Marketplace found that 12 out of 20 popular mobile games had mismatched age ratings and data collection policies.

While privacy laws in the U.S. and Europe restrict the collection of children’s data, developers bypass these by stating in the fine print that their games are for users over 13 or 16. This means children still play these games, and their data – including location and behavior patterns -is harvested and sold to third parties.

Experts warn that such data collection can shape children’s attitudes and interests. In one case, Marketplace used location data from a sample set and was able to trace a child’s device to his home and school, highlighting how easily children’s privacy can be compromised.

Canada lacks strong regulations to protect kids from such practices. Experts suggest adopting policies similar to the U.K.’s Children’s Code, which enforces stricter privacy standards. Until then, parents must take extra steps, such as adjusting privacy settings on devices, to limit advertisers’ access to their children’s information. If you want to learn more about Canada’s existing child privacy regulations, read about them HERE in an insightful article from Zack Pearlstein.