In this week’s GME3 we’re looking at the outcome of CFL defensive end Shawn Lemon’s arbitration over violations of the league’s gambling policy, the ban of X in Brazil over pervasive disinformation, and Kitchener, Ontario’s bid to host the 2025 BLAST Rocket League North America Major. Read the full stories below!
Gambling
Lemon’s Bet Sours
Last week the independent arbitrator in charge of determining the outcome of the Shawn Lemon case ruled to uphold the indefinite suspension of the Montreal Alouettes defensive end, according to the CFL.
Lemon was found to have placed several wagers on CFL games throughout 2021, including one he played in while on the Calgary Stampeders. As CFL commissioner Randy Ambrose said when speaking to the media last month:
“The unforgivable sin is gambling within your own league, but the most unforgivable sin is gambling on a game that you played in…Simply, you cannot cross that line and if you do, you have to send a strong message that it’s not tolerated”
While Lemon was able to appeal the original decision, he broke one of the cardinal rules of the league’s match manipulation policy, and as such has seen his career go up in smoke.
We saw a similar case play out earlier this year with the Toronto Raptors’ Jontay Porter. In Porter’s case, he was placed on leave as soon as the betting irregularities were discovered, with a lifetime ban soon to follow once it was established that he was helping gamblers cheat via spot-fixing. As such, Porter lost his contract worth over CAD $750,000 a year. While this sounds like a lot of money, it wasn’t enough to cover the gambling debts that the former basketball player had incurred.
Lemon’s suspension highlights the significant consequences of violating league rules. While an indefinite suspension isn’t exactly a ban, at 36 years old, it remains uncertain if he will ever return to the CFL, leaving his future in professional football in doubt.
Media
X-ed Out in Brazil
Brazil’s Supreme Court has ruled to uphold the ban on the social media platform X, voting unanimously in favour of the measure.
The ban comes as a result of a months-long feud between the social media platform and Brazillian authorities. In April, Supreme Court judge Alexandre de Moraes accused X-owner Elon Musk of “waging a disinformation campaign” by refusing to block accounts that were spreading false information, especially in support of former far-right Brazillian Brazilian President Jair Bolsonaro. Bolsonaro lost the 2022 election to Luiz Inacio Lula da Silva after making unsubstituted claims that Brazil’s electronic voting machines are prone to fraud.
This all culminated last week when the Supreme Court ordered X to appoint a legal representative in Brazil, or else face “suspension of the social network’s activities.” X failed to meet the deadline and was shut down in Brazil. Apple and Google were given 5 days to remove the app from their stores and block its use on Apple and Android devices. Anyone found using X could face a fine of up to R$50,000 (just under CAD $12,000) a day.
The X offices in Brazil closed last month after its representative had been threatened with arrest if she did not comply with orders that the company described as “censorship.” Reacting to the ban on X, Elon Musk said: “Free speech is the bedrock of democracy and an unelected pseudo-judge in Brazil is destroying it for political purposes.”
The ruling by Brazil’s Supreme Court underscores the growing tension between social media platforms and government authorities when it comes to combating misinformation. As the conflict between X and Brazil continues, it raises questions about the balance between free speech and the responsibility of platforms to prevent the spread of harmful content. The outcome of this case may have broader implications for the regulation of social media in other countries as well.
Entertainment
Kitchener Aims for the Goal
Kitchener, Ontario is looking to host a major esports event in 2025. Rocket League is a very popular game that combines soccer with car racing, and the BLAST Rocket League North America Major is one of the game’s biggest tournaments. In 2024, the BLAST tournament had a prize pool of over $4,300,000, with concurrent viewership reaching 311,595 at its peak.
The 2025 tournament could bring over 8,000 esports athletes and hundreds of thousands of viewers to Kitchener and is a fantastic opportunity for the city. Organizers expect the economic impact of the event to even reach $17.7 million, a big boom for local tourism, hotels, and restaurants.
“Bringing that diversity from across the world to reflect on and to participate in gaming, I think it’s really exciting for this region and something we’ll be able to celebrate as this develops,” said Regional Councilor Colleen James at a council meeting on Aug. 28. If the bid is accepted, the Region of Waterloo plans to invest $200,000 from the Municipal Accommodation Tax Reserve fund to support hosting the tournament.
Hosting the 2025 Rocket League North America Major presents an incredible opportunity for Kitchener, promising significant economic benefits and international exposure. With a potential influx of thousands of athletes and visitors, the event could become a landmark moment for the city, boosting local tourism and positioning Kitchener (and Ontario) as a key player in the esports world.
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!