GME3: Ontario’s Poker Face-Off, Betting Ads on Target & Down Under-age: Social Ban

For this week’s GME3, we’re taking a look at the ongoing court hearing regarding international liquidity sharing in Ontario (along with exclusive first-hand coverage from Daniel Trujillo), a shocking change to Google’s ad policies allowing targeted ads for social casino games, and the passing of a bill in Australia that would ban anyone under the age of 16 from accessing social media. Read on for the full stories!

Gambling

Ontario’s Poker Face-Off

The hearing to determine whether Ontario’s regulated online gaming platforms can legally allow Ontarians to play with international players is currently underway. 

Ontario’s online poker market, under provincial regulation, is currently ring-fenced, meaning that Ontarians can only engage with other players in Ontario. This results in fewer game options and smaller player pools, leading to many players opting to use “grey-market” international platforms, which offer higher stakes and more variety, bypassing Ontario’s regulated system. The province argues that allowing international participation would attract these players back, increasing revenues and enhancing players’ gaming experience while also maintaining the province’s robust regulations.

The proposed initiative reflects broader global trends, as several European countries currently allow international gambling participation. However, the Canadian Criminal Code lacks clarity on whether international player pools are permissible, prompting Ontario to seek legal certainty. 

Opposition to the motion comes from lottery and gaming agencies in other provinces, which fear such a move could proliferate illegal gambling in their jurisdictions. They note that Ontarians already access international gaming sites despite existing restrictions. These agencies are urging the court to reject Ontario’s proposal, citing concerns over potential legal and regulatory challenges.

The case has significant financial stakes, potentially unlocking hundreds of millions of dollars in online poker and daily sports fantasy betting revenues currently restricted by the law. Since (at the time this article is being written) the hearing is currently underway, GME Law has sent Daniel Trujillo to the Court of Appeal for Ontario to observe and report back. His summaries of days one and two are available on our blog now!

Media

Betting Ads on Target

Google is changing its stance on targeted ads for social casino games, marking a significant shift in its advertising policies. Starting December 4, social casino game apps – games like poker, slots, and roulette that simulate gambling without offering real-money prizes – will no longer be categorized under the “Gambling” sensitive interest group. This means advertisers can use personalized targeting for these apps.

Historically, Google has prohibited targeted ads for gambling-related content, aiming to avoid negative impacts on vulnerable audiences, such as those with gambling addictions. However, this new policy suggests Google sees potential in the growing social casino market, which represents a lucrative advertising segment. 

The move could lead to an uptick in social casino ads. However, Google has clarified that sweepstakes casinos offering prizes are still restricted under sensitive interest categories. Google’s sensitive interest categories include:

• Legal restrictions: Ads must comply with the law.

• Personal hardships: Ads shouldn’t target users in ways that exploit their difficulties or struggles.

• Identity and belief: Ads shouldn’t target users based on categories prone to systemic discrimination or unfair stigmas.

• Sexual interests: Ads shouldn’t target users based on inherently private sexual interests or experiences.

• Access to opportunities: Ads shouldn’t limit access to opportunities by leveraging unfair societal biases when targeting users with specific content categories.

To ensure compliance, advertisers will face warnings and potential account suspensions for violations of this policy.

The broader implications of Google’s policy shift remain uncertain. It underscores the expanding influence of the social casino industry and raises questions about the balance between profit-driven innovation and protecting vulnerable users. For advertisers, the change signals new opportunities, while for critics, it poses fresh concerns about potential addiction and the ethical challenges of targeted ads.

Entertainment

Down Under-age: Social Ban

The Australian government has passed a groundbreaking bill to ban children under 16 from using social media. The legislation targets platforms like TikTok, Facebook, and Instagram, imposing fines of up to AUD $50 million (CAD $45 million) for failing to prevent underage users. Once enacted, companies will have one year to implement compliance measures before penalties take effect.

Amendments proposed in the Senate aimed to enhance privacy protections, ensuring platforms cannot demand government-issued IDs or enforce digital identification systems. While the bill received overwhelming support (102-13), it faced criticism for being rushed, potentially ineffective, and creating privacy risks. 

Social media companies have echoed the criticism that the legislation is rushed and lacks clarity on age verification methods. Tech companies warn of potential negative impacts, including harming teens’ mental health by cutting off access to online support networks. Elon Musk’s X Corp has called the bill “alarming,” citing legal and practical concerns. Both Meta and Google advocate waiting for results from a national age verification trial before implementing the law, emphasizing that the proposal overlooks key technical and social complexities.

Now that the bill has passed, the Australian government has until the end of 2025 to enact it. While certain questions, like “how will they possibly enforce this”, remain unanswered, we at GME Law will be keeping a close eye on the story as it develops.