GME3: iGO All Grown Up, Ballot Boxing Over Data Breach & (Blue)Sky’s the Limit

In this week’s GME3 we’re taking a look at the exciting announcement that iGO will now be a fully independent government organization (rather than a subsidiary of the AGCO), a potential data breach in the recent municipal election in Regina, Saskatchewan, and a surge in users for the social media platform Bluesky after the election results earlier this month. Read the full stories below!

 

Gambling

iGO All Grown Up

 

Ontario’s fall 2024 budget introduced significant changes to the province’s gaming framework through Bill 216, the Building Ontario For You Act, 2024, which includes the iGaming Ontario Act. This legislation fundamentally alters the organizational structure of iGaming Ontario (iGO), transforming it from a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO) into a fully independent, board-governed agency.

 

A spokesperson for Ontario MP Doug Downey’s office had this to say:

 

“Once proclaimed, the Act would also dissolve the parent-subsidiary relationship between the AGCO and iGO. This change would strengthen iGO’s governance and accountability structure and contribute to the continued success of Ontario’s thriving iGaming market by positioning the agency as a competitive employer and addressing a conflict-of-interest concern raised by the Auditor General.”

 

Since its establishment in July 2021, iGO has operated under the oversight of the AGCO per the Alcohol and Gaming Commission of Ontario Act, 2019. It was tasked with managing online gaming operations introduced after the market opened in April 2022, overseeing commercial competitors to the Ontario Lottery and Gaming Corporation (OLG). The new legislation dissolves the parent-subsidiary relationship between iGO and AGCO, amending both the 2019 Act and the Gaming Control Act, 1992 to eliminate references to a lottery subsidiary.

 

This restructuring coincides with leadership changes at iGO, as Executive Director Martha Otton prepares to retire. The board, chaired by Heidi Reinhart, has launched a search for Otton’s successor, whose role will be redefined as President and CEO under the new framework. The iGaming Ontario Act is set to be proclaimed in early 2025, formalizing iGO’s independence and marking a significant evolution in Ontario’s approach to online gaming.

 

Media

Ballot Boxing Over Data Breach

 

Elections Saskatchewan is reviewing a formal complaint from the community group Rally Around Homelessness (RAH) accusing third-party organization Advance Regina of misusing private voter information during the recent municipal election. RAH also filed similar complaints with Elections Canada, alleging violations of privacy provisions under the Canada Elections Act and provincial Election Act.

 

RAH claims that Advance Regina, which endorsed several city council candidates, used a mobile app containing membership lists from the Saskatchewan Party and Conservative Party of Canada. A screenshot of the app, CIMS to Go (C2G), was included as evidence. RAH argues this use of voter data breaches legal and ethical standards. Advance Regina denies the allegations, stating it does not access voter data from any political party.

 

Elections Saskatchewan is determining if the complaint falls under its jurisdiction, while the federal commissioner of Canada Elections stated that their mandate applies only at the federal level. Both the Saskatchewan Party and the Conservative Party deny authorizing the use of their voter information by third parties, with each promising to investigate if complaints are filed.

 

Advance Regina dismissed the accusations as false and politically motivated. The Canada Elections Act prohibits misuse of voter data, with penalties including fines and imprisonment. The outcome of the investigation remains pending.

 

Entertainment

(Blue)Sky’s the Limit

 

The day after the U.S. presidential election saw significant shifts in the social media landscape. Over 115,000 users deactivated accounts on Elon Musk’s X (formerly Twitter), marking its largest mass exit. Simultaneously, Bluesky, a competing social media platform, experienced a surge in U.S. daily usage, growing by over 500%. Bluesky CEO Jay Graber attributed this growth to the platform’s user-centred approach, allowing for personalized feeds and custom algorithms, distinguishing it from X’s centralized model. As Graber herself puts it, “Give people the tools to control their experience and they’ll have a better time.”

  

While Bluesky has now surpassed 20 million users, it remains small compared to giants like X and Instagram. That said, the platform has gained popularity among those unhappy with X’s direction under Musk. Since acquiring Twitter, Musk has made controversial changes, including removing content guardrails and introducing pay-to-play verification. Additionally, his vocal political stances and partisanship have fueled a wave of users seeking alternatives, with many finding refuge in Bluesky’s decentralized, open-source framework.

 

Despite its growth, Bluesky faces challenges typical of expanding platforms, such as glitches and concerns over scalability. Its operating model is unique: Bluesky intends to avoid advertising as its primary source of income and instead plans to pursue other monetization methods, such as a subscription model for premium features. This approach aligns with its commitment to user autonomy and data privacy, avoiding ad-driven revenue or AI data training.

 

Bluesky was originally backed by Twitter co-founder Jack Dorsey, who envisioned a decentralized social network that is not controlled by one person or company. However, Dorsey has since cut ties, citing his issues with the platform’s speech rules, and is currently pursuing his own vision with the niche platform Nostr (described as a “’censorship-resistant’ open source social network”). As Bluesky gains traction, questions about its long-term sustainability remain. Analysts highlight its need to develop a revenue model to support its growth while maintaining its decentralized ethos and user-friendly appeal.

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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