GME3: All Bets Are Regulated, 23andBankruptcy, True North, Verified and Free & BetMGM’s High-Stakes Slip-Up

Welcome back to the GME… 4? We had this week’s edition ready to go when the Alberta government announced the iGaming Alberta Act, and some last-minute changes became necessary. In addition to that story, this week we’re also discussing the potential privacy impact of 23andMe’s Chapter 11 bankruptcy proceedings, the spread of misinformation on social media in the leadup to Canada’s impending federal election, and (honourable mention to this week’s original gambling story) a $110,000 fine levied by the AGCO against BetMGM. Read the full stories below!

 

Gambling

All Bets Are Regulated

 

The Alberta government has introduced long-awaited legislation that aims to establish a licensed iGaming regime, akin to Ontario. Bill 48, the iGaming Alberta Act, aims to create the Alberta iGaming Corporation and establish a regulated online gambling market. This move aims to improve safety for Albertans who are already participating in online gambling by offering better consumer protections and responsible gaming tools. Currently, unregulated gambling platforms are easily accessible and often lack player safeguards.

 

Minister Dale Nally emphasized that the goal isn’t to encourage more gambling, but to make existing gambling safer and provide increased gambling revenue for the province, especially as the industry evolves. The proposed legislation would introduce key measures like a centralized self-exclusion system and clear age restrictions, setting the minimum gambling age at 18.

 

The bill also sets up a clear division between the new corporation’s operational role and the Alberta Gaming, Liquor and Cannabis (AGLC)’s regulatory role, which will ensure market compliance and integrity. AGLC already oversees PlayAlberta, currently the province’s only legal iGaming platform.

 

Supporters, including industry stakeholders like theScore, praised the initiative as a way to increase consumer protection, generate new provincial revenue, and move users away from unregulated operators. The province also plans to reinvest revenue into public services and continue promoting responsible gambling through programs like GameSense.

 

Overall, Bill 48 represents a significant step toward a modern, safe, and regulated online gambling environment in Alberta. If you want to learn more about the Bill, read the official announcement from the Provincial government HERE.

 

Media

23andBankruptcy

 

Amid its Chapter 11 bankruptcy proceedings, 23andMe is seeking court approval to sell most of its assets — potentially including the sensitive genetic and health data of its 14 million customers. This has triggered significant privacy concerns, as legal experts warn that even customers who delete their accounts may not be able to fully erase their data from the company’s systems. According to 23andMe’s privacy policy, some information — including genetic data, birthdate, and sex — may still be retained due to legal obligations, and could be sold or transferred to a buyer.

 

Privacy experts highlight that genetic data is likely 23andMe’s most valuable asset. While the company says any buyer must comply with current privacy laws, those laws vary, and a new owner could adopt weaker privacy standards. Although the company assures it will seek a partner who shares its data privacy values, critics point out that once sold, users lose control over how their data is used, especially if a new privacy policy is introduced.

 

The situation is under scrutiny by privacy regulators in Canada and the U.K., particularly in light of a major 2023 data breach affecting nearly 7 million users. That incident, which exposed personal information such as ancestry results and user demographics, further eroded public trust.

 

Experts urge users to delete their accounts if possible, though they acknowledge that doing so may not fully erase one’s digital footprint. The broader concern is whether 23andMe’s treasure trove of genetic information — shared in good faith by customers — will remain protected in the hands of an unknown future owner.

 

Entertainment

True North, Verified and Free

 

As Canada enters a federal election campaign, Chief Electoral Officer Stéphane Perrault is working closely with social media platforms like X and TikTok to curb misinformation. Perrault emphasized the importance of a secure election and said he’s been satisfied with the initial cooperation from these companies. TikTok, in particular, announced efforts to remove harmful content and partner with fact-checkers to ensure accuracy.

 

Perrault highlighted the growing threat of AI-generated “deepfake” content and urged Canadians to rely on Elections Canada for accurate voting information. The agency has launched a new online tool, “ElectoFacts,” to debunk false claims circulating online. He also reminded voters to confirm their ridings, as electoral boundaries have recently changed.

 

The concern over misinformation comes amid broader fears of foreign interference in Canadian democracy. A recent inquiry led by Justice Marie-Josée Hogue concluded that while interference hasn’t affected past election outcomes, the spread of disinformation is now the biggest threat to democracy, even calling it an “existential” risk.

 

To address these concerns, the government has activated two panels: the Critical Election Incident Public Protocol Panel and the SITE task force. These bodies monitor and assess threats, though critics say they’ve not been proactive enough in the past, especially at the riding level. Officials now say they aim to improve transparency and responsiveness ahead of the 2025 election.

 

Honourable Mention

BetMGM’s High-Stakes Slip-Up

 

The Alcohol and Gaming Commission of Ontario (AGCO) has issued a $110,000 monetary penalty to BetMGM Canada Inc. for violating the Registrar’s Standards for Internet Gaming. The penalty stems from two 2024 incidents in which BetMGM’s marketing affiliates offered cash incentives to the public for opening new accounts – practices explicitly prohibited under Ontario’s gambling regulations.

 

These promotions occurred at public events, including a national trade show, and violated Standards 1.19 and 2.05. Standard 1.19 holds operators accountable for the actions of their third-party affiliates, requiring them to comply with all applicable laws and standards. Standard 2.05 prohibits public advertising of gambling inducements, bonuses, or credits unless it’s on the operator’s site and directed at players who have given explicit consent.

 

BetMGM acknowledged that its affiliates, “Above the Street” and “Maple Leaf Marketing,” engaged in these banned marketing tactics. “Above the Street” secured 377 sign-ups and earned over $127,000 in commissions, while “Maple Leaf Marketing” was responsible for 94 new player activations and received $34,000 in commissions.

 

The AGCO emphasized its commitment to protecting Ontarians from high-risk and predatory gambling promotions, noting that Ontario is among the first jurisdictions globally to enforce such stringent advertising rules. Operators served with a monetary penalty have the right to appeal the decision to the Licence Appeal Tribunal, an independent body. AGCO CEO Dr. Karin Schnarr reinforced that maintaining responsible gambling safeguards is a top priority.

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!

Recent Posts

Related Posts