GME3: Taming the Digital Frontier, Copywronged: AI Can’t Claim & Bilzerian’s Brand Burnout

In this week’s GME3, Alberta is gearing up for a long-awaited expansion into online gambling, AI-generated content continues to run into copyright roadblocks, and internet personality Dan Bilzerian finds himself in a legal standoff in B.C. over an Instagram account. Read the full stories below!

 

Gambling

Taming the Digital Frontier

 

Alberta is set to launch its open online gambling sector in early 2026, as announced by Canadian Gaming Association President Paul Burns at the NEXT iGaming Summit in New York earlier this month. The province initially aimed for a 2024 launch, but shifting priorities, including potential trade conflicts with the U.S., delayed the timeline.

 

Despite these setbacks, opening Alberta’s online gambling market could provide a significant economic boost. Ontario’s experience in gaming regulation offers a compelling case: since the launch of its online gambling sector nearly three years ago, the province has seen over $3 billion in annual revenue, supported 12,000 full-time jobs, and contributed $1.6 billion to its GDP. Additionally, 85% of Ontario’s former grey-market gambling operators have now transitioned into the regulated space.’

 

While Alberta’s population is only a third of Ontario’s, even generating one-third of Ontario’s revenue – about $1 billion – could mean an additional $200 million in annual tax revenue. This potential windfall is particularly appealing given the province’s current economic challenges and ongoing trade tensions with the U.S. Alberta has already responded to these tensions by, among other measures, banning the Alberta Gaming, Liquor and Cannabis Commission (AGLC) from purchasing video lottery terminals (VLTs) from American suppliers. 

 

If you want to learn more about Alberta’s (and other provinces’) response to trade tensions with the U.S., and how it could affect Canada’s gaming industry, read our article on the topic HERE.

 

Media

Copywronged: AI Can’t Claim

 

A federal appeals court in Washington, D.C., has ruled that AI-generated artwork without human input cannot be copyrighted under U.S. law. The decision upholds the U.S. Copyright Office’s stance that only works with human authors can receive copyright protection. The case involved Stephen Thaler, who sought copyright for an image created by his AI system, DABUS. The Copyright Office rejected his application in 2022, and a federal judge affirmed that ruling in 2023, citing human authorship as a fundamental requirement of copyright law.

 

Thaler argued that his “sentient” AI system independently created the work, making it eligible for copyright. However, the D.C. Circuit Court unanimously disagreed, with Judge Patricia Millett writing that the Copyright Act presumes human authorship. The ruling follows previous rejections of copyright claims for AI-generated works, including those made using Midjourney, though some artists have argued they should be entitled to protection for AI-assisted creations.

 

Thaler’s attorney, Ryan Abbott, expressed disagreement with the decision and intends to appeal. Thaler also warned that the ruling could discourage investment in AI-generated content. Meanwhile, the Copyright Office maintained that the court reached the correct conclusion.

 

This case highlights the ongoing legal challenges surrounding AI and intellectual property, as officials and courts grapple with how copyright laws apply to rapidly advancing generative AI technologies.

 

Entertainment

Bilzerian’s Brand Burnout

 

Dan Bilzerian, the self-proclaimed “King of Instagram,” has been found in contempt of court in British Columbia for refusing to hand over control of an Instagram account to Ignite International Brands Ltd., a nicotine, spirits, and apparel company (or as they put it on their website, a “global lifestyle brand”) he once led. The B.C. Supreme Court had ordered Bilzerian to surrender the account credentials in October, but he failed to comply, leading Justice Michael Tammen to rule against him in February.

 

Bilzerian, who was ousted as Ignite’s CEO, has been fighting in court to regain company control. He argued that he doesn’t trust the current management to abide by court orders, but the judge ruled that this was not a valid excuse for non-compliance. While Bilzerian has appealed the order, he did not seek a stay to halt its enforcement.

 

As a penalty, the court ordered Bilzerian to pay $10,000 to Ignite for special costs. Meanwhile, he has filed a similar lawsuit in Nevada, where he resides, in an attempt to reclaim the company.

 

Complicating matters, Ignite is currently under investigation in the U.S. for alleged conspiracy and fraud. Federal authorities claim Bilzerian’s father, Paul Bilzerian – a convicted felon – secretly controlled the company while funnelling millions into it. The elder Bilzerian, 74, owes the U.S. government over $180 million from a past SEC ruling. While these allegations remain unproven, the case adds further legal trouble to the ongoing dispute over Ignite’s leadership.

GME Law is Jack Tadman, Zack Pearlstein, Lindsay Anderson, Daniel Trujillo, and Will Sarwer-Foner Androsoff. 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. Lindsay is the most recent addition to the team, bringing her experience as a negotiator and contracts attorney, specializing in commercial technology, SaaS services, and data privacy. 

 

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!

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