In this week’s GME3 we have an update to the court case that will decide whether international liquidity sharing will be permitted in Ontario, a record-breaking fine levied against Cineplex for deceptive marketing practices, and a lawsuit filed against MrBeast alleging “dangerous circumstances and conditions” on the set of his reality competition show “Beast Games.” Read the full article below!
Gambling
B.C. Bails on Betting Battle
The Attorney General of British Columbia has decided to bow out of the court case that will decide whether international liquidity sharing will be permitted in Ontario. Currently in Ontario games like online poker and fantasy sports are “ring-fenced,” meaning that players in Ontario using regulated gaming platforms can only play with other players located in Ontario. This makes the player pool for these games much smaller than they otherwise would be, which means less competition and less profits for operators. This even led to major DFS operators DraftKings and FanDuel to shut down their daily fantasy businesses in Ontario.
The Ontario government asked the Court to determine once and for all if international liquidity sharing would be consistent with the provincial laws related to iGaming. Specifically, they asked:
“Would legal online gaming and sports betting remain lawful under the Criminal Code if its users were permitted to participate in games and betting involving individuals outside of Canada as described in the attached Schedule? If not, to what extent?”
B.C.’s Attorney General was later approved as an intervener for the reference and fought to include evidence that B.C. residents were being pushed toward international affiliate sites by Ontario-regulated iGaming operators.
However, it seems that B.C. has changed its mind about their involvement in the case, as B.C.’s evidence has been removed from the Ontario Court of Appeal’s website. Aara Ramesh, a spokesperson for the Atorney General, said that “The Attorney General of British Columbia has withdrawn from the reference. As this matter is still before the courts, we cannot comment further.”
While we aren’t sure about what led to this change of heart, the removal of B.C.’s evidence from the case will surely make the process of determining this issue more straightforward.
If you want to learn more about international liquidity sharing in Ontario, Jack featured on an episode of the Gaming News Canada podcast on the topic! You can find the full episode here.
Media
Fee-ling the Heat: Cineplex Fined
Cineplex Inc., Canada’s largest chain of movie theatres, has been hit with a record-breaking $38.9 million fine for deceptive marketing practices by the Competition Tribunal. In May 2023, the Competition Bureau accused Cineplex of misleading customers by not disclosing the full cost of a ticket purchased online. “The consumer is deceived or led astray by the contradictory and incomplete information on Cineplex’s tickets page, which obfuscates the existence and quantum of the online booking fee,” the tribunal claimed.
Specifically, the Competition Bureau objected to the $1.50 charge for purchasing a ticket online that Cineplex implemented in 2022. The bureau alleged the fee constituted “price dripping,” a practice when customers are drawn into a purchase without full disclosure of the final cost.
Cineplex has denied the accusations, claiming that moviegoers are promptly told about fees they may face and can avoid them altogether by purchasing tickets at a theatre. The company went on to express shock over the fine, stating “We believe our guests make informed purchase decisions and remain confident our online booking fee is presented in a way that fully complies with the spirit and letter of the law.”
The $38.9 million fine is equivalent to the amount that Cineplex collected from consumers through the $1.50 online booking fee between June 2022 and December 2023. Cineplex intends to appeal the fine.
While the Competition Bureau did not immediately respond to a request for comment about Cineplex’s announcement that it would appeal the ruling, the head of the bureau earlier on Monday evening called the tribunal’s decision “a resounding win for Canadians.”
Entertainment
Feast or Famine at Beast Games
Jimmy Donaldson, better known online as MrBeast, is facing a lawsuit brought against him by contestants on his reality competition show “Beast Games” over being subjected to “dangerous circumstances and conditions.”
Filed by five contestants who have chosen to remain anonymous, the suit alleges that:
Contestants were provided with insufficient food and medical care, leading to several hospitalizations;
Defendants provided false information to state officials in Nevada to obtain “unearned tax credits”; and,
Contestants were not appropriately compensated for their participation.
“I was really excited to be part of something that was going to be really big,” said one of the plaintiffs, identified in the suit as Contestant 4. “In the end, I just left feeling really insignificant and mistreated and traumatized. I still haven’t gotten paid. I just hope that no one else ever has to go through this.”
Another contestant in the suit, Contestant 5, said she felt “embarrassed and degraded” by the experience. Furthermore, the show ended up with double the contestants that they advertised they would (2000 instead of 1000), which led some contestants to feel they had been misled about their odds of winning the grand prize.
This lawsuit shines a spotlight on the potential ethical and legal challenges that arise from large-scale reality competitions, especially those with high stakes and massive participant pools. As the case moves forward, it could have significant implications not only for MrBeast and his production team but also for the broader entertainment industry. It serves as a reminder that proper treatment, transparency, and fair compensation are essential in any production, particularly when individuals’ well-being and livelihoods are at stake.
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!