EU: New European Consumer Protection Guidelines for Virtual Currencies in Video Games
On March 21, 2025, ahead of a consultation and call for evidence on the EU’s Digital Fairness Act, the Consumer Protection Cooperation (CPC) Network[1] highlighted the pressing need for improved consumer protection in the European Union, particularly regarding virtual currencies in video games. This move comes in response to growing concerns about the impact of gaming practices on consumers, including vulnerable groups such as children. The CPC Network has defined a series of key principles and recommendations aimed at ensuring a fairer and more transparent gaming environment. These recommendations are not binding and without prejudice to applicable European consumer protection laws[2] but they will likely guide and inform the enforcement of consumer protection agencies on national level across the EU.
What Are the Key Recommendations for In-Game Virtual Currency?
The CPC Network’s recommendations are designed to enhance transparency, prevent unfair practices, and protect consumers’ financial well-being. These principles are not exhaustive but cover several crucial areas:
Clear and Transparent Price Indication: The price of in-game content or services must be shown in both in-game currency and real-world money, ensuring players can make informed decisions about their purchases. (Articles 6(1)(d) and 7 of the UCPD, and Article 6 (1) (e) of the CRD)
Avoiding Practices That Obscure Pricing: Game developers should not engage in tactics that obscure the true cost of digital content. This includes practices like mixing different in-game currencies or requiring multiple exchanges to make purchases. The goal is to avoid confusing or misleading players.(Articles 6 (1) (d) and 7 of the UCPD, and Article 6 (1) (e) of the CRD)
No Forced Purchases: Developers should not design games that force consumers to spend more money on in-game currencies than necessary. Players should be able to choose the exact amount of currency they wish to purchase.(Articles 5, 8 and 9 of the UCPD)
Clear Pre-Contractual Information: Prior to purchasing virtual currencies, consumers must be given clear, easy-to-understand information about what they are buying. This is particularly important for ensuring informed choices.(Article 6 of the CRD)
Respecting the Right of Withdrawal: Players must be informed about their right to withdraw from a purchase within 14 days, particularly for unused in-game currency. This is crucial for ensuring consumers’ ability to cancel transactions if they change their mind.(Articles 9 to 16 of the CRD)
Fair and Transparent Contractual Terms: The terms and conditions for purchasing in-game virtual currencies should be written clearly, using plain language to ensure consumers fully understand their rights and obligations.(Article 3 (1) and (3) of the UCTD)
Respect for Consumer Vulnerabilities: Game developers must consider the vulnerabilities of players, particularly minors, and ensure that game design does not exploit these weaknesses. This includes providing parental controls to prevent unauthorized purchases and ensuring that any communication with minors is carefully scrutinized.(Articles 5-8 and Point 28 of Annex I of the UCPD)
These principles reflect the growing concern by European regulators of exploitation of consumers, particularly vulnerable groups such as children, in the gaming world. The European Consumer Organisation (BEUC) has strongly supported these measures, which aim to provide a safer, more transparent gaming experience for players.
Enforcement Actions and Legal Proceedings
On the same day, coordinated by the European Commission the CPC Network initiated legal proceedings against the developer of on online game. This action, driven by a complaint from the Swedish Consumers’ Association, addresses concerns about the company’s marketing practices, particularly those targeting children. Allegations include misleading advertisements urging children to purchase in-game currency, aggressive sales tactics such as time-limited offers, and a failure to provide clear pricing information.
A Safer Gaming Future
This enforcement action, along with the introduction of new principles, is part of the European Commission’s stated objective to ensure better consumer protection within the gaming industry. The Commission aims to emphasize the importance of transparency, fairness, and the protection of minors within gaming platforms.
What Should Video Game Companies and Gambling Operators Do Next?
In light of these new developments, video game companies and gambling operators especially those offering virtual currencies are well advised to review their practices to ensure ongoing compliance with existing EU consumer protection laws.
Failure to align with the above principles does not automatically mean that consumer laws are infringed but as the recent enforcement action shows could result in investigations and enforcement actions under the CPC Regulation or national laws. If gaming content is available across multiple EU countries, a coordinated investigation may be triggered, with the possibility of fines up to 4% of a company’s annual turnover.
To further support the industry, the European Commission is organising a workshop to allow gaming companies to present their strategies for aligning with the new consumer protection standards. This will provide a valuable opportunity for companies to share their plans and address any concerns related to these proposed changes. If you would like to know more, please get in touch.
FOOTNOTES
[1] The CPC Network is formed by national authorities responsible for enforcing EU consumer protection legislation under the coordination of the European Commission.
[2] Reference is made to Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 on unfair commercial practices (UCPD); the Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights (CRD); the Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (UCTD).
“Glass Ceilings Have Been Shattered”: Analysing the Impact of Kirsty Coventry’s Election as the Next IOC President
“Seismic”, “groundbreaking”, “landmark”. These are all words that have been used to describe Kirsty Coventry’s appointment as the next IOC President, after she swept to victory in the leadership election on 20 March 2025, winning more votes than the other six male candidates combined. The 41-year-old Zimbabwean will become the second youngest[1], first female and first African to hold the role in the IOC’s 130-year history.
“I hope that this vote will be an inspiration to many people… Glass ceilings have been shattered today, and I am fully aware of my responsibilities as a role model.”
(Kirsty Coventry, 20 March 2025)
The reaction of the global sports community to Ms Coventry’s election has largely been positive, with her rivals magnanimous in defeat. However, as outlined below, there are some commentators who point to the alleged airbrushing of political controversies, and others who say that her appointment will ensure a “continuation of the same” given that Ms Coventry is already on the IOC Executive Board[2] and was acknowledged as the favoured candidate of outgoing President Thomas Bach.
In this article I will examine:
Why Ms Coventry’s electoral success has divided opinion in some quarters;
The bases on which she campaigned, and how her manifesto differed to those of her rivals;
The potential impact of her appointment on a practical level; and
What Ms Coventry’s immediate challenges may be when she formally takes up the IOC Presidency in June.
Immediate reaction to Ms Coventry’s “landslide” victory
Only one round of voting was required for Ms Coventry, a five-time Olympic swimmer herself, to win the election outright. She secured more than 50% (49 votes of the total 97 votes), with Juan Antonio Samaranch Jr (28 votes) and Lord Sebastian Coe (8 votes) second and third respectively. Whilst Ms Coventry was one of the favourites, the emphatic nature of the result did come as a surprise to many.
Few, if anyone, can deny that the appointment of a woman from Africa to the most senior executive position in international sport sends a positive message. In the immediate aftermath of the election, Ms Coventry herself remarked that “it’s a really powerful signal; a signal that we’re truly global, and that we have evolved into an organisation that is truly open to diversity.”
Amongst those who have publicly praised Ms Coventry’s appointment have been:
President of the New Zealand Olympic Committee, Liz Dawson, who commented that “her fresh perspective and innovative approach will enhance the Olympic Movement and strengthen its global influence“.
President of the Brisbane 2032 Organising Committee, Andrew Liveris, who said that the vote was a “resounding proclamation of [Ms Coventry’s] leadership” and that she had “been incredibly positive, supportive and instrumental in promoting Brisbane 2032’s progress across the IOC movement and beyond”.
The African Paralympic Committee, who stated: “her election to the highest office in the global sports community is a source of pride for Africa. As the continent’s first daughter and a former athlete, [she] symbolise[s] the resilience of African women, breaking barriers and inspiring generations across the continent and beyond”.
However, not everyone has been so effusive. Questions have been raised about to her connections to the Zimbabwean Government, a regime that remains under both UK and US sanctions. First, she reportedly accepted a $100,000 cash reward from former President Robert Mugabe for winning four medals (including Gold in the 200m backstroke) at the 2008 Beijing Olympics. And then, in September 2018, she accepted a governmental position as Zimbabwe’s Minister of Youth, Sport, Arts and Recreation under current President Emmerson Mnangagwa[3]. The risk of being tarnished by association is a real one, but Ms Coventry has defended her connection with President Mnangagwa’s government, publicly stating:
“I don’t believe you can really create change if you don’t have a seat at the table… Having to navigate very sensitive issues has definitely given me extra ‘armour’ if I can put it that way for what [the IOC] will face in in the future, and we’re going to have to navigate difficult leaders that have different opinions on things.”
Away from Zimbabwean politics, some have questioned Ms Coventry’s impact within IOC circles to date, particularly as a member of the IOC’s Athletes’ Commission (which she chaired from 2018-2021). Indeed, notwithstanding that Ms Coventry has pledged to protect the female category (see below), former British swimmer Sharron Davies MBE took aim at her apparent passivity on this issue, stating “sadly for me Kirsty Coventry has… not spoken up before to protect female athletes coming behind her”.
Ms Coventry’s manifesto vs her rivals
Ms Coventry’s election manifesto, titled “Unleashing the Transformative Power of Sport” (with an accompanying strapline, “A Stronger, Sustainable, Relevant Olympic Movement”) emphasised challenging the status quo, embracing modernity, promoting sustainability and, in particular, protecting female sport. Below are key elements she campaigned on:
Empowering and protecting female athletes: Implementing stronger safeguards against gender-based violence and increased support for athlete mothers, including facilities like dedicated nursing rooms during the Games. On the complex issue of transgender participation, she advocated for policies that ensure fairness in women’s competitions based on current scientific research.
Technological integration: Emphasis on the integration of new technologies, such as online streaming and artificial intelligence, to keep the Olympics relevant and accessible to a broader audience.
Financial prioritisation: Reallocation of prize money to programmes that benefit a larger segment of the athlete community, focusing on access to training, health, and mental health support.
Inclusive participation: Highlighting the importance of IOC neutrality, she opposes the exclusion of athletes from the Olympics due to their nationality.
Embracing new regions: Expanding Olympic hosting regions, particularly in Africa and the Middle East. This would increase global engagement, create new revenue opportunities and make the Olympics more inclusive.
Unsurprisingly, there was a degree of overlap between most of the candidates’ campaigns on certain issues, with almost all highlighting environmental sustainability and recognising the challenges to hosting the Games in a changing climate. Nevertheless, each manifesto had its own particular focus or USP, as summarised below:
Juan Antonio Samaranch Jr (IOC Member and son of a former IOC President, 28 votes): Focused on strengthening the role of IOC members, ensuring sustainability, and maintaining political neutrality. He proposed extending the retirement age of IOC members, conducting operational reviews to optimise resources, and creating a $1 billion investment fund for the IOC’s sustainability.
Lord Sebastian Coe (President of World Athletics, 8 votes): Proposed decentralising power within the IOC, leveraging the talents of its members, and enhancing the organisation’s efficiency. He also focused on sport as a powerful social tool and highlighted his extensive experience in athletics and sports administration.
David Lappartient (Head of International Cycling Union and French NOC, 4 votes): Advocated for greater involvement of IOC members in decision-making processes and proposed achieving gender parity among the IOC membership by 2036. He also emphasised the need for the IOC to lead on sustainability and climate initiatives, arguing that it should tie financial support to international federations, at least in part, to their commitment to climate issues.
Morinari Watanabe (President of International Gymnastic Federation, 4 votes): Offered unique ideas, such as hosting the Summer Games across five cities on five continents simultaneously to reduce the burden on host cities and provide continuous global coverage. He also proposed a bicameral governance system within the IOC to enhance decision-making processes.
Prince Feisal al Hussein (President of Jordan Olympic Committee, 2 votes): His manifesto centred on modernising the Olympic movement through technology and innovation. He proposed integrating esports into the Olympic framework, utilising artificial intelligence to improve sports experiences, and engaging youth throughout the Olympic cycle.
Johan Eliasch (President of International Ski Federation, 2 votes): The only candidate to broach the idea of a rotational Winter Games to address environmental concerns and ensure the event’s future viability. He offered the most “restrictive” proposal regarding the ring-fencing of women’s sport, proposing that only athletes born female should be permitted to compete in that category.
The likely impact of Ms Coventry’s election on a practical level
For all the talk of, to use Ms Coventry’s own phrase, “challenging the status quo”, a common thread in the media is that her success was built on positioning herself as a “continuity candidate”, rather than a “reformer”. She has fulfilled a number of IOC roles[4] (including being on the IOC Executive Board) since first becoming a member in 2013, and is therefore regarded as an “IOC insider”. Reuters journalist Karolos Grohmann suggested that Ms Coventry’s election ensures “smooth continuity for the IOC after Bach” as she has “towed the company line and is not expected to rock the IOC boat”.
That said, Ms Coventry should certainly enable the IOC to present itself as a progressive, diverse and “relevant” organisation. We know sport can have a unifying power, some of which can be intangible and difficult to measure, at least in the short term.
It obviously remains to be seen which elements of her manifesto she will prioritise (curating proposals can be much easier than implementation), but one area we might expect to see robust action concerns the protection of women’s sport. As it stands, the IOC permits each international federation to set its own gender eligibility rules, which has led to a range of approaches as they try to navigate inclusion on one hand, and concerns regarding fairness and safety on the other.
Ms Coventry has pledged to implement a ban on transgender athletes competing in the women’s category at the Olympics, stating in February 2025:
“I want to ensure that front and foremost, we protect (the) female category. I don’t believe that transgender female athletes should be competing at the Olympic Games [in female categories]”… I do believe everyone has the right to play sport, 100%, but when it comes to the Olympic Games … being a former female athlete and having two young girls, I want to ensure that category is protected.”
Although Ms Coventry has previously not been as outspoken on gender issues as the likes of Lord Coe[5], her position on transgender Olympic participation is an emphatic one, drawing on her own experiences as a former female athlete. In the short-term, we know that she intends to set up a taskforce to address how best to protect women’s sport. Looking further ahead, it would not be surprising if the IOC decided to take some of the decision-making authority away from the international federations and implement tighter, more uniform, rules.
In terms of the impact on the continent of Africa, Michael Payne, the former IOC Director of Marketing, commented: “there is no doubt that the influence of Africa in world sport will grow because of [Ms Coventry’s] appointment.” Historically, African nations have faced challenges in influencing Olympic policies, but Ms Coventry’s leadership could bring more attention to the continent’s needs and priorities, including the development of grassroots and youth programmes. One of her key manifesto points was expanding the Olympic hosting regions and her leadership could accelerate efforts to bring major sporting events (and ultimately, maybe even an Olympic Games) to her home continent, improving infrastructure and investment in African sports.
The immediate challenges
When Ms Coventry takes up her new role in June, the 2026 Milan-Cortina Winter Olympics will be just eight months away. The climate crisis has raised a number of existential questions for winter sports, as well as the need for greater flexibility around scheduling major events within the existing sporting calendar. Amongst other pressing items in her in-tray will be the selection of the host nation for the 2036 Summer Olympics (India, Qatar, Turkey, South Africa and others have all expressed interest) – specifically, how that process will work.
Perhaps her biggest immediate challenge of all will be one of diplomacy, given the complex and unpredictable geopolitical landscape she will be inheriting. It is virtually impossible to divorce sport and politics, regardless of Olympic ideals around neutrality, and the status of Russia and Belarus continues to loom large. Ms Coventry’s manifesto expressly referenced her opposition to banning any countries from the Games but, as it stands, only a handful of Russians will be competing as neutral athletes in the 2026 Winter Olympics. Sean Ingle, writing in The Guardian, contemplated whether Russia’s reintegration into Olympic sport could be part of a potential peace deal with Ukraine.
And finally, of course, Ms Coventry will need to engage, and build a relationship with, President Donald Trump ahead of the 2028 Los Angeles Games. The US President has reportedly threatened permanent visa bans on trans athletes based on sex markers. When asked about the prospect of engaging with Trump, Ms Coventry said “I have been dealing with, let’s say, difficult men in high positions since I was 20 years old… we will not waiver from our values”.
Ms Coventry’s meteoric rise from swimmer to IOC President has been remarkable and is widely welcomed, but even bigger challenges lie ahead.
[1] Pierre de Coubertin was 33 years old when he was appointed the second President of the IOC in 1896.
[2] Ms Coventry has been on the IOC Executive Board from 2018-2021 and 2023-present.
[3] Ms Coventry was re-appointed to the role in September 2023, following President Mnangagwa’s re-election. Ahead of the 2023 election, Human Rights Watch found that “rights critical for Zimbabwe’s election, such as to freedom of expression, association, and assembly, [were] imperilled… the environment for a credible, free, and fair election has been grossly diminished.”
[4] The full roster of Ms Coventry’s IOC roles since 2013 are set out on page 2 of her manifesto, which include: IOC Executive Board Member (2018-2021, 2023-present), Chair of the Coordination Commission for the 2032 Brisbane Olympic Games (2021-present), Chair of the Games Optimisation Working Gorup (2022-present), and Chair of the Athlete Commission (2018-2021).
[5] Oliver Brown, ‘Lord Coe’s defeat by “Mugabe’s golden girl” proves IOC has no desire to change’ (The Telegraph, 21 March 2025): “[Lord Coe] has consistently argued that biology trumps gender, while accusing the IOC of caving in to “second-rate sociologists” in its pursuit of inclusion of all costs.”
Even Jepson Preambles Require Written Description Support
The US Court of Appeals for the Federal Circuit found a Jepson claim unpatentable where the specification did not provide adequate written description for the portion of the claim purporting to recite what was already well known in the prior art. In re Xencor, Inc., Case No. 24-1870 (Fed. Cir. Mar. 13, 2025) (Hughes, Stark, Schroeder, JJ.)
Xencor filed a patent application claiming a modified anti-C5 antibody treatment with certain amino acid substitutions that provide for longer serum half-lives and reduce the need for more frequent treatment. The application included:
A Jepson claim reciting, “[i]n a method of treating a patient by administering an anti-C5 antibody with an Fc domain, the improvement comprising” certain amino acid substitutions, wherein the modified antibody has “increased in vivo half-life.”
A non-Jepson claim directed to “a method of treating a patient by administering an anti-C5 antibody comprising” certain amino acid substitutions, wherein the modified antibody “has increased in vivo half-life.”
The specification provided one example of an anti-C5 antibody, 5G1.1, and three high-level examples of potential uses for anti-C5 antibodies. The examiner rejected the claims for lack of written description. Xencor unsuccessfully appealed the rejection to the Patent Trial & Appeal Board. Xencor then unsuccessfully petitioned the Board for reconsideration. Xencor appealed to the Federal Circuit, which resulted in a remand to the Board’s Appeals Review Panel (ARP).
The ARP concluded that Jepson claim preambles require written description support and that the preamble language of “treating a patient” was limiting – even without the Jepson claim format – because it gave life and meaning to the claim recitations “increased in vivo half-life” and “administering.” Because the specification did not provide a representative number of species to support the broad genus of anti-C5 antibodies, a description of conditions that can successfully be treated with an anti-C5 antibody, or even a single working example describing treatment with an anti-C5 antibody with the claimed modifications, the ARP found that the claims lacked written description and that Xencor had not shown that anti-C5 antibodies were well known. Xencor again appealed, arguing that “treating a patient” was not limiting and that Jepson preambles do not require written description support.
With respect to the preamble of the method claim, the Federal Circuit noted that Xencor agreed that the “administering” portion was limiting but nonetheless argued that “treating a patient” was not. Although a preamble can be split into limiting and non-limiting parts, the Court reasoned that the preamble here could not be neatly packaged into separate portions because the phrase “treating a patient” was directly connected through the word “by” to the phrase “administering an anti-C5 antibody,” and each phrase gave meaning to the other. The Court further explained that the entire preamble provided the raison d’être of the claimed method: When a patient is treated with the modified anti-C5 antibody, the treatment lasts longer, reducing the frequency of treatments. Accordingly, the Court agreed with the ARP that the recitation “treating a patient” was limiting.
The Federal Circuit next concluded that substantial evidence supported the ARP’s determination that the specification did not provide written description support for “treating a patient.” Because the specification was not limited to treating a particular disease, “treating a patient” meant “treating all patients and all diseases.” While the specification provided three examples of classes of diseases that might benefit from the claimed treatment, the Court agreed with the ARP that this disclosure was inadequate to demonstrate possession of a method of treating any particular disease, let alone all diseases.
Finally, the Federal Circuit explained that a Jepson claim preamble requires written description support because it is used to define the claimed invention and the claim scope. The Court cautioned that a patentee cannot obviate the written description requirement by using a Jepson claim to avoid the requirement that the inventor be in possession of the claimed invention – otherwise, a patentee could obtain a Jepson claim with a preamble that recited a time machine as well known in the art without describing a time machine. To provide adequate written description for a Jepson claim, the applicant must establish that what is claimed to be well known in the art actually is well known in the art. The Court explained that the amount of disclosure necessary varies depending on the level of knowledge of the person skilled in the art, the unpredictability of the art, and the newness of the technology.
Given the large number of possible antibodies in the anti-C5 antibody genus and the limited disclosure in the specification, the Federal Circuit affirmed the ARP’s determination that the Jepson claim lacked adequate written description.
Plaintiffs Try Another Bite at the Apple… and Google Too!
In a recent post about legal issues with the social casino sweepstakes model, we indicated that a recent RICO lawsuit against a social casino sweepstakes model, which also named Apple and Google, was dismissed voluntarily by the plaintiff. Plaintiffs are already taking another bite at the Apple.
A new lawsuit was filed against Apple and Google by lead Plaintiff Bargo and two co-plaintiffs. The new complaint alleges that the lawsuit is about “patently illegal gambling software being distributed to the cell phones, desktop computers and other personal electronic devices of individuals throughout New Jersey, New York and beyond, by an unlawful enterprise that includes two of the most successful companies in the world.” This complaint does not name any of the social casino games operators.
Rather, it alleges that the named defendants “willingly assist, promote and profit from” allegedly illegal gambling by: (1) offering users access to the apps through their app stores; (2) taking a substantial percentage of consumer purchases of Game Coins, Sweeps Coins and other transactions within the apps; (3) processing allegedly illicit transactions between consumers and the Sweepstakes Casinos using their proprietary payment systems; and (4) by using targeted advertising to allegedly “shepherd the most vulnerable customers to the Sweepstakes Casinos’ websites and apps” facilitating an allegedly unlawful gambling enterprise.
The legal claims are made under the NJ gambling loss recovery statute, the New Jersey Consumer Fraud Act, Unjust Enrichment, New York’s gaming loss recovery statute, NY consumer protection laws, and the RICO laws.
Keep California Rolling: New Bills Poised to Revitalize Production (in Hollywood)
The introduction of Senate Bill 630 and Assembly Bill 1138 aims to provide California with a competitive advantage in its quest to retain and bring back production jobs that are vital to the entertainment industry. The bills were introduced by Senator Ben Allen, Assembly Members, Rick Chavez Zbur, and Isaac Bryan, with a focus on job creation and promise to diversify the types of productions that qualify for California’s Film and Television Tax Credit program. SB 630 and AB 1138 will be referred to respective policy committees over the coming weeks. Governor Gavin Newsom has also unveiled plans to more than double California’s current tax credit cap to provide much-needed relief for the entertainment industry following COVID-19 shutdowns, the strikes, LA wildfires and mass exodus of film and television production from California.
SB 630 and AB 1138 are intended to amend, update, and modernize California’s Film and Television Tax Credit Program, with the stated goal of protecting and bringing back jobs that have left, and continue to leave California for other more lucrative production locations, and to ensure that California remains competitive in the industry. SB 630 and AB 1138 would increase the rebate by an unspecified amount from the 20% that is currently offered to most productions in California. Each law would also expand types of productions that are eligible for the tax incentives, by including animation, game shows, and other unscripted programming, each of which is currently excluded.
In an effort to bolster this momentum, the Entertainment Union Coalition has launched a campaign called “Keep California Rolling”, which aims to keep film and television jobs in California.” The initiative is labor-led and its main purpose is to emphasize the importance of exploring new ways to attract film and television production back to the state, as well as support Governor Newsom’s proposal to expand the California Film & TV Tax Credit from $330 million annually to $750 million. However, though likely to be approved, this expansion hinges on California’s 2025-2026 budget which is currently being negotiated.
Several member entities of the Entertainment Union Coalition have traveled to Sacramento to lobby lawmakers in support of this jobs-based program, including the Directors Guild of America, LiUNA! Local 724, SAG-AFTRA, Teamsters Local 399, Writers Guild of America West, California IATSE Council, and the American Federation of Musicians. Collectively, the Entertainment Union Coalition represents over 165,000 members who live and work in California’s entertainment industry. If Governor Newsom’s proposal passes, it will prove to be the most significant expansion to the program in decades.
Production jobs being lured away to different territories has been an issue plaguing California for decades, as the financial incentives in other states and countries have proven too lucrative to pass up–Georgia, Ontario and the United Kingdom have no caps on their subsidies for film and television productions. According to recent reports from FilmLA and the Entertainment Union Coalition, production in Los Angeles was down 30% over five-year averages in 2024 and approximately 50% of the 312 productions did not qualify for California’s tax credit incentive from 2015 to 2020. SB 630 and AB 1138 aim to change that trajectory and create a sustainable environment that keeps jobs and economic benefits in California.
Jennifer Hays contributed to this article.
Trump Administration’s Executive Orders Attempt To Reset Sex & Gender Identity Issues in Women’s Sports
In January 2025, the Republican Party took control of both houses of Congress and the White House, portending seismic policy shifts around women’s and college sports, as previously reported here. Indeed, in the days immediately following his inauguration, President Trump issued a slew of Executive Orders, including Executive Order 14201 (Keeping Men Out of Women’s Sports) (February 5, 2025) (“EO 14201”). EO 14201 declared it would now be the policy of the United States to rescind funding from educational programs that permit transgender women or girls to compete on female sports teams or in female sports (the “EO 14201”).
The Trump Administration’s Department of Education immediately followed EO 14201 by making two significant policy announcements concerning the application of Title IX of the Education Amendments of 1972 (“Title IX”), signaling that President is already following through on his campaign pledge to reset Biden-era rules and regulations regarding women’s sports.
Below, we review EO 14201 and subsequent developments to discern their meaning and assess their immediate and long-term impact on women’s sports.
Key Provisions of the Executive Order
EO 14201 is effectively an extension into women’s sports of the Trump Administration’s interpretation of biological sex pursuant to Executive Order 14168 (Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government), which declared that it is the policy of the Unites States to recognize two sexes, male and female. EO 14201 states that participation of males (i.e., transgender women) in female sports “is demeaning, unfair, and dangerous to women and girls, and denies women and girls the equal opportunity to participate and excel in competitive sports.” Accordingly, it is the United States’ policy to “rescind all funds from educational programs that deprive women and girls of fair athletic opportunities, which results in the endangerment, humiliation, and silencing of women and girls and deprives them of privacy” and “oppose male competitive participation in women’s sports more broadly, as a matter of safety, fairness, dignity, and truth.”
In furtherance of its stated policies, EO 14201 includes directives to:
The Department of Education (“DOE”), to (i) comply with a recent federal court ruling vacating the Biden Administration’s Final Rule that broadened Title IX’s prohibitions against discrimination on the basis of sex to include gender identity, (ii) take action, including through litigation, review of federal funding, rulemaking and policy, to protect “all-female athletic opportunities and all-female locker rooms” in the interest of securing the equal opportunity guarantees of Title IX and ensuring “women’s sports are reserved for women.”
The Assistant to the President for Domestic Policy, to (i) engage with large athletic organizations and governing and harmed female athletes in support of EO 14201’s purpose, and (ii), convene State Attorneys General to identify best practices to define and enforce equal opportunity for women in sports.
The Secretary of State – among other government officials – to (i) engage in a variety of acts, including but not limited to rescinding support for programs that categorize competition based on identity rather than sex and promote international rules governing sport to protect a female sports category that is sex-based; (ii) review and adjust immigration policies that would admit males to the United States to participate in women’s sports, and (iii) take efforts to ensure that the International Olympic Committee amend standard to protect women and eligibility for Olympic competition is determined by sex, not gender identity or testosterone reduction.
Related Developments
The effects of EO 14201 were immediate.
On February 4, 2025, the DOE followed through and issued a “Dear Colleague” letter stating that it would be enforcing Title IX, not under the above-referenced, recently vacated 2024 Rule, but rather under the 2020 Rule, which was promulgated during the prior Trump Administration and aligns with EO 14201’s biological definitions of sex, excluding gender identity.
On February 6, 2025, and pursuant to EO 14201, the NCAA implemented a new participation policy limiting competition in women’s sports only to student-athletes assigned female at birth, while allowing student-athletes either (x) assigned male at birth, or (y) assigned female at birth who has begun gender-affirming hormone therapy (e.g., hormone therapy) to practice with women’s teams.
Less than a week later, on February 12, 2025, the Department of Education announced that it was rescinding guidance issued by the Biden DOE on January 16, 2025, which had warned NCAA schools that payments to student-athletes for use of their name, image, and likeness (“NIL”), whether distributed by schools or third parties (e.g., collectives or brands), qualified as “financial assistance” and must be distributed under Title IX on a nondiscriminatory basis.
By rescinding that guidance, the Trump Administration appears to be signaling that the protection of women in sports does not extend to NIL pay and that disparities in NIL pay between male and female athletes will not trigger Title IX scrutiny, at least not from the DOE. Thus, at least in the eyes of Trump’s DOE, if and when schools ever begin making NIL or revenue-sharing payments to student-athletes, Title IX will not restrict them from directing those funds in disproportionate amounts to athletes in revenue-generating sports, which are predominantly male.
Looking Ahead
EO 14201 was unsurprising given President Trump’s stated positions during the 2024 election campaign. Also unsurprising is the wide-ranging responses to EO 14201, which will likely face legal challenges in implementation given conflicting state laws and deep political divide. Its practical impact will likely differ based on level of competition (e.g., youth versus college sports) and whether federal funding is involved in any particular circumstance. In the meantime, organizations involved in women’s or girls’ sports would be wise to consider its potential impact on their polices and practices and keep an eye out for related developments.
No Ifs or Buts: Supreme Court Holds the Line on Unauthorized Profits
In Rukhadze and others v Recovery Partners GP Ltd and another [2025] UKSC 10, the Supreme Court had the task of deciding whether a change was needed to the law on equitable obligations and liabilities of fiduciaries.
The duty under the microscope was the so-called “profit rule”, i.e. that a fiduciary must account to his principal for any profit derived from or made out of the fiduciary relationship, save where the principal has provided his informed consent to the fiduciary retaining that profit. Such profit has long been treated in equity as held on constructive trust for the principal from the moment it is made.
In Rukhadze, the Court re-examined whether it needed to apply a common law “but for” causation test before granting an account of profits in such circumstances. Was the Court required to ask whether the fiduciary would have made the profit but for its breach, for example because the principal would have consented to it or because the fiduciary could have terminated the relationship before he gained the opportunity and would have made the same profit anyway?
To state the relevant facts briefly, the case centred around asset recovery services provided to the family of deceased Georgian businessman Arkadi Patarkatsishvili (“Badri”). Those services were initially carried out by “SCPI”, a company in which the individual appellants held senior roles and were fiduciaries. When the appellants left SCPI, they continued to provide the services to Badri’s family and received fees for doing so. The respondents (SCPI’s successors) claimed that the appellants were in breach of duty by, inter alia, taking for themselves SCPI’s business opportunity, and sued the appellants for an account of profits represented by the payments made to the appellants by the family. At first instance, the appellants were held to be in breach of fiduciary duty and ordered to make an account of profits, in the amount of the payments made by the family less 25% as an equitable allowance for the appellants’ work and skill in providing the services. The Court of Appeal dismissed the appellants’ appeal.
Before the Supreme Court, the appellants argued that applying “what if” counterfactuals with a “but for” common law causation test would provide more clarity, predictability, common sense and justice to this area of equity and avoid harsh results.
However, in a majority verdict, the Court declined to allow the appeal, holding that there is no requirement for a “but for” causation test, with Lord Briggs summarising at [36]:
The question is not, would the profit have been made even if there had been no antecedent breach of fiduciary duty, but did the profit owe its existence to a significant extent to the application by the fiduciary of property, information or some other advantage which he enjoyed as a result of his fiduciary position, or from some activity undertaken while he remained a fiduciary which the conflict duty required him to avoid altogether. For that purpose the court looks closely at the facts, i.e. what actually did happen, but does not concern itself with what might have happened in a hypothetical “but for” situation which did not in fact occur.
Therefore, the duty to account to a principal applies to all fiduciaries and is not merely a remedy; rather it is a duty that arises at the moment the profit is gained.
In its reasoning, the Court considered that there are in-built limitations to the application of the profit rule, namely that there must be a sufficient link between the fiduciary relationship and the profit gained. While the duty to account does not depend on any prior breach, where the profit follows on from a breach of the conflict duty, the sufficient link required will usually be established and “the accountability for the resulting profit will usually follow”. [42] Further, the Court was content that any possible injustices or harsh results would be better alleviated by its discretion to grant an equitable allowance, as the trial judge had ordered in this case, rather than an application of a broad “but-for” test.
Arguments put forward by the appellants that the increasing number of fiduciary relationships in the business world supports a relaxation of the deterrent role of the current law were not persuasive and in fact tended to underline that the duty of single-minded loyalty owed by a fiduciary should be very carefully protected.
Application to Sport
As in the wider business world, there are an ever-increasing number of fiduciaries in sport, including sports agents, whether the traditional “on-field” agents or those working in “off-field” commercial settings; directors and partners in sports clubs, governing bodies and other entities; and trustees in charitable trusts, foundations and investment structures.
Rukhadze will serve as a reminder from the highest court in the land to all sports fiduciaries of the significant obligations and liabilities they owe to their principal in that role. The consequences of breach are severe.
Sports agents have long recognised this fact. In the landmark Court of Appeal case in Imageview Management Ltd v Jack [2009] EWCA Civ 63, which considered a secret profit of £3,000 made by a football agent in assisting his football player principal’s club to obtain a work permit for him, the Court ordered both an account of the profit made and forfeiture of all remuneration received by the agent from the player. While forfeiture of remuneration was not considered on the facts in Rukhadze, until we have a Supreme Court judgment offering further clarity in this area, all fiduciaries remain mindful that this draconian remedy will be ordered by courts and tribunals in appropriate cases.
As Rukhadze confirms, it is prudent for fiduciaries to seek and obtain the informed consent of their principal if they wish to retain profits earned. Likewise, when fiduciaries wish to act for both sides in a transaction (as is common with on-field sports agents), informed consent should be obtained from each principal to avoid a breach of the fiduciary’s duty to avoid conflicts of interest. If not, fiduciaries may find that only a quantum meruit allowance remains on the table where it is held to be fair and equitable to recompense the skill and effort used in the transaction. As per Rukhadze, such an equitable allowance may only represent a fraction of the profit gained.
New York and New Jersey Move to Prohibit Social Casino Sweepstakes Model
We recently wrote about the flurry of legal issues with the social casino sweepstakes model. Now, the New York State Senate Racing, Gaming, and Wagering Committee passed S5935, a bill that, if fully approved and enacted, would prohibit in NY “online” sweepstakes games that uses a dual-currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or any chance to win any price, award, cash or cash equivalents, and simulates casino-style gaming. The bill also covers other entities including financial institutions, payment processors, geolocation providers, gaming content supplier, platform providers, or media affiliates who support the operation, conduct, or promotion of sweepstakes games within the state of New York.
Since our last post, New Jersey has undergone an apparent shift in legislative approach. It did have a bill (AB 5196) that would regulate social casino sweepstakes, subjecting them to the existing regulatory framework requiring licensing, oversight and taxation. But a new bill (AB 5447) would prohibit them.
On a more positive note, a recent RICO lawsuit against a social casino sweepstakes model, which also named Apple and Google, was dismissed voluntarily by the plaintiff.
Alright, Alright, A Write-Off: Matthew Mcconaughey’s Push for Texas Film Tax Incentives
Texas has long been a hub for film and television production, offering diverse landscapes, a rich cultural backdrop, and some real characters. Back in 2007 the state implemented the Texas Moving Image Industry Incentive Program, which is administered by the Texas Film Commission under the Economic Development and Tourism Division of the Office of the Governor.[1] Allocations have continued to grow ever since.[2] Starting with $20 million in the first year,[3] it is now the largest in state history at $200 million with a 22.5% tax rebate.[4]
However, this funding is still below competitive states like Georgia and New Mexico.[5] If Senate Bill 1 (SB1), which was filed on January 22, 2025, is approved, then $498 million would be allocated “to revamp the Texas Film Incentive, making Texas the movie capital of the world.”[6] The incentive would consist of two parts: “$48 million in grants for small films and TV commercials, and up to $450 million in new tax credits, including Texas residency requirements for workers,” which Lt. Gov. Dan Patrick provides would give Texas $4 back for every $1 invested.[7]
In early 2025, a coalition of prominent actors—including Matthew McConaughey, Woody Harrelson, Renée Zellweger, Billy Bob Thornton, and Dennis Quaid—launched the “True to Texas” campaign.[8] This initiative features a commercial directed by True Detective creator Nic Pizzolatto, where the actors emphasize the economic benefits, such as job creation and local business growth, that could result from increased investment in the Texas film industry.[9]
This push is no surprise given the new film studios opening in the state, including a 546- acre studio in Bastrop.[10] Also, over the past few years, more hit productions, such as Taylor Sheridan’s Yellowstone, 1923, and Landman, have filmed in Texas.[11]
As of February 13, 2025, SB1 has been scheduled for a public hearing in the Senate Finance Committee.[12] Given that our firm has represented clients in some of the industry’s largest and most complex transactions in the entertainment industry and has worked on numerous deals utilizing tax incentives around the world, we continue to monitor the status of SB1 and standby ready to advise clients as needed.
FOOTNOTES
[1] Texas Moving Image Industry Incentive Program | Fort Bend Economic Development Council
[2] Film Subsidies – Texas Public Policy Foundation
[3] Film Subsidies – Texas Public Policy Foundation
[4] McConaughey, Harrelson channel ‘True Detective’ in Texas films ad
[5] McConaughey, Harrelson channel ‘True Detective’ in Texas films ad
[6] Lt. Gov. Dan Patrick: Statement on the State Budget Filed in the Texas Senate – Lieutenant Governor Dan Patrick
[7] Lt. Gov. Dan Patrick: Statement on the State Budget Filed in the Texas Senate – Lieutenant Governor Dan Patrick
[8] Dennis Quaid says Texas wants to be ‘New Hollywood’ in ad: photos
[9] Dennis Quaid says Texas wants to be ‘New Hollywood’ in ad: photos
[10] Bastrop film studio could produce $1.9B over 10 years and Bastrop reels in massive film studio and entertainment complex from California company
[11] McConaughey, Harrelson channel ‘True Detective’ in Texas films ad
[12] TX SB1 | 2025-2026 | 89th Legislature | LegiScan
The Hidden Impact of Sports-Related Head Injuries
Millions of Americans participate in sports and recreational activities for physical fitness, teamwork, socializing, and more. However, the risk of serious injuries from these sports can often be overlooked or forgotten. March is Brain Injury Awareness Month, and since recreational activities offer a significant risk of head injuries, we are going to discuss the different types of sports-related head injuries and symptoms.
Types of Sports-Related Head Injuries
1. Concussions
A concussion is a type of mild traumatic brain injury caused by a blow to the head or a violent shaking of the head and body. Symptoms include:
Headaches
Sensitivity to light and noise
Dizziness
Nausea
Confusion
A majority of traumatic brain injuries that occur each year are mild or concussions. While most people recover from concussions with proper management, studies show repeated concussions can lead to more severe long-term issues.
2. Traumatic Brain Injury (TBI)
Traumatic brain injuries cover a broader range of injuries, including concussions and more severe forms. TBIs result from external forces that cause brain damage. Symptoms vary widely and can include:
Loss of consciousness
Mood swings
Memory loss
Difficulty concentrating
Physical coordination issues
Around 2.8 million people sustain a traumatic brain injury each year in the U.S. The severity of a TBI can range from mild to severe, affecting an individual’s cognitive functioning and quality of life.
3. Chronic Traumatic Encephalopathy (CTE)
CTE is a degenerative brain condition linked to repeated head injuries, such as concussions. Symptoms often do not become visible until years after the injuries occur and can include:
Memory loss
Depression
Impulsive behavior
Progressive dementia
Aggression
CTE is especially concerning for athletes in contact sports like football, where repeated head trauma is common.
4. Second-Impact Syndrome (SIS)
Second-impact syndrome happens when an athlete suffers a second concussion before fully recovering from a previous one. This can lead to severe and potentially life-threatening complications, such as rapid brain swelling and loss of consciousness. SIS emphasizes how critical proper management and recovery are after a concussion.
Injury Prevention
Sports and recreational activities contribute to over 21% of all traumatic brain injuries in American children and teens, according to The American Association of Neurological Surgeons (AANS).
Preventing head injuries in sports requires a well-rounded approach:
Education: Athletes, coaches, and parents should be told about the risks associated with head injuries and the importance of recognizing symptoms.
Proper Equipment: Using appropriate protective gear, such as helmets and headgear, can reduce the risk of injury.
Enforcing Safety: Sports organizations should prioritize and consistently enforce safety rules.
Monitoring Health: Athletes should be encouraged to report head injury symptoms immediately. Regular medical evaluations can also help manage recovery effectively.
By understanding the different types of sports-related head injuries and their potential consequences, we can work together to create a safer environment for athletes. Prioritizing education, prevention, and proper management is essential for protecting the health and well-being of all participants in sports and recreational activities.
Top 10 Sports with the Most Injuries
When it comes to sports and recreational activities, physical activity, social interaction, and teamwork are just a few of the many benefits. However, these activities also come with the risk of injuries. From sprains and fractures to concussions, certain sports are associated with higher injury rates than others. We’ll discuss the sports most commonly linked to injuries and the common sports injuries for different age groups.
Sports Most Associated with Injuries
In the United States, about 30 million children and teens participate in organized sports, resulting in over 3.5 million injuries each year. Sports involving contact and collisions like football tend to result in more injuries compared to non-contact activities like swimming. Nonetheless, all sports can lead to injuries from direct contact, overuse, or improper techniques.
According to the National Safety Council (NSC), the following sports and recreational activities reported the highest number of injuries in 2023:
Exercise, exercise equipment: 482,886
Bicycles: 405,688
Basketball: 332,391
Football: 263,585
Skateboards, scooters: 221,313
Soccer: 212,423
Playground equipment: 190,942
Swimming, pools: 166,011
Baseball, softball: 139,940
Trampolines: 111,212
Types of Sports Injuries
There are two main categories of sports injuries: acute and chronic. Acute injuries happen suddenly, mostly due to blows, falls, or twists, and commonly result in sprains or dislocations. The most frequently reported sports injuries include sprains and strains. Chronic injuries, however, develop gradually over time from repetitive strain, such as stress fractures or tennis elbow.
The most common causes of sports injuries include falls, collisions, overexertion, and being struck by objects.
Age Considerations
Younger athletes are generally more susceptible to acute injuries like ligament tears and fractures while participating in sports. However, sports activities account for over 20% of traumatic brain injuries among children in the U.S.
On the other hand, older athletes may not experience the same severity of injuries but are increasingly prone to conditions like knee problems, rotator cuff injuries, and Achilles tendonitis. These injuries can stem from natural aging or from maintaining an active lifestyle.
Conclusion
Injuries are an inherent risk in many sports, but understanding the types of injuries connected with specific activities can help reduce these risks. By promoting safety and awareness, we can continue to enjoy the benefits of sports while minimizing the potential for injury. If you or a loved one have been injured while playing a sport or recreational activity, don’t hesitate to seek help from a personal injury attorney. Remember, prioritizing safety means playing smart!
Mississippi Gaming Commission Meeting Report (March 2025)
The Mississippi Gaming Commission held its regular monthly meeting on Thursday, March 20, 2025, at 9:00 a.m. at the Jackson office. Executive Director Jay McDaniel, Chairman Franc Lee, and Commissioner Kent Nicaud were all in attendance. Commissioner Jeremy Felder was absent. The following matters were considered:
LICENSING
The Commission approved the issuance of a license to the following:
SUZOHAPP Gaming Solutions, LLC, as a Manufacturer and Distributor
BetMGM, LLC, as a Manufacturer and Distributor
Beau Rivage Resorts, LLC d/b/a Beau Rivage, as an Operator
PNK Vicksburg, LLC d/b/a Ameristar Casino Vicksburg, as an Operator
Modern Gaming, Inc., as a Manufacturer and Distributor
Stadium Technology Group, LLC, as a Manufacturer and Distributor
FINDINGS OF SUITABILITY
The Commission approved findings of suitability for the following persons or entities:
James Michael Brendel – SUZOHAPP Gaming Solutions, LLC
Kristine Elizabeth Brendel – SUZOHAPP Gaming Solutions, LLC
Eric Alan Hession – Caesars Entertainment Inc.
Andrew Morgan Archibald – United Tote Company
OTHER APPROVALS
The Commission approved the following additional items:
IGT
Transfer of the Equity Interests and Securities of De Agostini S.p.A.
Pledges of Equity Interests and Securities
Imposition of Equity Restrictions, including Negative Equity Pledges
Guarantee of Securities and Hypothecation of Assets
Stadium Technology Group, LLC
Continuous Approval of Public Offerings and Private Placements
Pledges of Equity Interests and Securities
Imposition of Equity Restrictions including Negative Equity Pledges
Guarantee of Securities and Hypothecation of Assets
Magnolia Bluffs Casino LLC d/b/a Magnolia Bluffs Casino
Pledges of Equity Interests and Securities
Imposition of Equity Restrictions and including Negative Equity Pledges
Approval of Magnolia Bluffs Casino LLC to Become Under Common Control with SG Gaming Holdco, LLC
End of Other Approvals