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Compliance Updates

Euroconsumers calls Nintendo to solve its “Joy-Con Drift” probl

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The new version of the Nintendo “Switch” console, the Switch OLED, expected on October 8th 2021, shows an unsolved technical problem with its controllers – an issue commonly called “Joy-Con Drift” –  that prevents players from playing the game properly. Nintendo is quite aware of this flaw. Yet it still plans to roll out the new Switch with the old problem. Euroconsumers calls Nintendo to account.

“Joy-Con Drift”

The flaw in the controllers manifests itself after a couple of months, falsely reading input from the controller stick, as if the user has their thumb pressed down on the controller, causing the game character to move without the player even touching the device. This prevents the player from playing the game as intended. This issue is not new: it was already denounced extensively by users of the current Nintendo Switch, IFixit and multiple consumer organisations.

Nintendo’s inaction

This flaw has previously been raised with Nintendo. Firstly in January 2020, Test Achats/Test Aankoop, Euroconsumers’ Belgian national organization, sent a letter of formal notice to Nintendo Europe GmbH calling on the company to repair all the defective products free of charge and to publicly communicate about the defect.

In January 2021, BEUC, the European umbrella group for 46 independent consumer organisations, launched an external alert to the CPC network about a widespread infringement with Union dimension of EU consumer law, related to the premature obsolescence of the Nintendo Switch.

On top of this EU action, two class actions have been launched in the US, and a Canadian firm has filed an application to begin a class action.

Nevertheless, Nintendo has taken no actions to remedy the flaw or alert consumers. It even issues a new Switch OLED with the exact same Joy-Con design, with the exact same inescapable defect. Meanwhile Nintendo keeps on putting a great deal of emphasis on the quality and versatility of the Joy-Con in its advertisements t.

This early obsolescence is not only unfair and harmful to consumers, but also affects the environment, creating a pile of unnecessary and extremely polluting electronic waste.

Euroconsumers’ call on Nintendo

In a letter Euroconsumers has confronted Nintendo with the above,  asking them to:

  1. Adequately inform consumers of the existence of the “Joy-Con Drift” and its impact on the expected lifespan of the Nintendo controllers on the packaging of the product.

  2. Fully respect provisions on the legal product guarantee, without imposing any burden of proof on consumers or charging them with any costs to repair or replace their Switch controllers.

  3. Provide clear contact details at Nintendo for consumers to report and resolve Joy-Con problems, and for Euroconsumers and its national organisations to address problems to that regard.

  4. Resolve the technical “Joy-Con Drift” flaw and ensure a more sustainable version of the controllers. Euroconsumers, and its national organizations stand ready to deploy decades of technical and testing experience to support finding solutions.

Euroconsumers is available and willing to launch a dialogue with Nintendo in order to establish the best way to satisfy the above requests.

“Nintendo has a duty to its customers to provide functioning devices,” said Marco Scialdone, Head of Litigation and Academic Outreach at Euroconsumers. “To knowingly continue selling these game consoles when they are defective is a breach of EU consumer law. We expect Nintendo to do the right thing and work with us to find a solution for consumers.”

“While on one hand Nintendo pretends to commit to the green transition and serve consumers, its continued distribution of faulty electronic devices shows it’s true lack of genuine commitment,” said Els Bruggeman, Head of Policy and Enforcement at Euroconsumers. “Early obsolescence results in more electronic waste, which is particularly difficult to dispose of. This shows a regrettable lack of respect for both the environment and  consumers.”

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Former Star Entertainment Executives Mathias Bekier and Paula Martin Disqualified and Ordered to Pay Penalties

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The Australian Federal Court has disqualified former Star Entertainment Group Limited executives Mathias Bekier and Paula Martin from managing corporations for six and seven years respectively and ordered them to pay pecuniary penalties for breaching their duties by failing to properly manage serious risks at one of Australia’s major casinos.

The Court ordered:

Mr Bekier, the former Chief Executive Officer and Managing Director, to pay a pecuniary penalty of $700,000 and disqualified him from managing corporations for six years.

Ms Martin, the former General Counsel, Company Secretary, and Chief Legal and Risk Officer, to pay a pecuniary penalty of $400,000 and disqualified her from managing corporations for seven years.

His Honour also ordered that Mr Bekier and Ms Martin pay 45% of ASIC’s costs of the proceeding.

The Court previously found that both Mr Bekier and Ms Martin breached their duties owed to Star Entertainment in relation to their handling of the risks associated with money laundering and criminal activity.

ASIC Chair Sarah Court said: “senior executives have a critical responsibility to identify, escalate and properly manage serious risks within their organisations.

“These failures occurred in a highly regulated environment and contributed to significant governance breakdowns at Star.

“Penalties of this scale reflect the seriousness of their conduct and send a strong message to other senior executives of listed companies that failures of this type are unacceptable.”

ASIC has an enduring enforcement priority focused on governance and directors’ duties failures.

In relation to Mr Bekier, His Honour Justice Lee said:

“Senior executives of casino operators, and public companies conducting enterprises pregnant with risks more broadly, must understand that failures of the kind established by the contraventions may attract substantial personal consequences.”

Further, in respect of Ms Martin he found that “the community is entitled to expect that a solicitor occupying such positions and having such responsibilities, within one of Australia’s largest casino operators, will display professional independence, accuracy and judgment of a high order. The conduct established … represented a very serious departure from those standards” and that

“Ms Martin knew of a miscellany of alarming information pertaining to [an overseas gambling junket] … She was required to report such matters to the Board but failed to do so. This is all the more concerning when considered against the backdrop of Ms Martin being the most senior solicitor employed by Star”; and that

“The more pervasive the failures of governance and culture become, the greater the obligation upon those entrusted with legal and risk responsibilities to insist upon compliance with legal obligations and proper standards of corporate conduct.”

The post Former Star Entertainment Executives Mathias Bekier and Paula Martin Disqualified and Ordered to Pay Penalties appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Compliance Updates

Kentucky AG Files Lawsuits Against Companies Allegedly Operating Illegal Betting, Gambling Platforms

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Kentucky Attorney General Russell Coleman announced on Wednesday that his office has filed separate lawsuits against three online platforms he claims are operating without licenses and engaging in illegal sports betting and gambling.

The lawsuits were filed in Franklin Circuit Court against:

Kalshi, a prediction market platform, and its affiliates including Coinbase;

Polymarket, a prediction market platform, and its affiliates; and

VGW, an online casino platform with brands including Chumba Casino, Global Poker, and LuckyLand Slots.

The suits against Kalshi and Polymarket allege that they allow users to place wagers on game winners, point spreads and player statistics, and that they are doing business in Kentucky without a gaming license or following state regulations.

The suit against Kalshi states that it offers so-called “event contracts” on several topics; sports betting made up approximately 70% of its trading volume during a selected sample period in 2025.

The Polymarket suit states that the platform’s flashy advertisements on social media and elsewhere give the false and misleading impression that it is authorized to offer sports wagering under Kentucky law. The platform offers many of the same traditional sports bets as a licensed sportsbook.

“Kalshi and Polymarket are operating illegal sportsbooks in Kentucky and breaking our laws. These multi-billion dollar corporations and their legal fictions don’t pass the sniff test. As one of our state legislative leaders said it best, ‘If it looks like a duck and quacks like a duck’,” said Coleman on the suits.

The suits also allege that each company offers few or no resources to identify or seek help for a gambling problem.

The suit against VGW and its affiliates states that they allegedly operate unlawful sweepstakes casino websites that use two different types of virtual gambling chips.

The games on websites are designed to look and feel like slot machines and blackjack.

The alleged online casinos offer two types of chips: one free and one with cash value.

According to the suit, users pay real money for so-called Sweeps Coins, just as gamblers pay for poker chips at a real casino, or they can cash out their winnings.

“This company may use new technology and a new scheme to hide, but the reality is the same,” Coleman said on the suit. “Our Office has a duty to stop illegal gambling in Kentucky regardless of how it’s packaged.”

In recent months, Coleman has joined in national bipartisan efforts to regulate prediction markets.

The post Kentucky AG Files Lawsuits Against Companies Allegedly Operating Illegal Betting, Gambling Platforms appeared first on Americas iGaming & Sports Betting News.

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Compliance Updates

PopOK Gaming secures Swiss certification to supply online casino games

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Approval positions the supplier to distribute certified titles to licensed operators under Switzerland’s Federal Gambling Act.

PopOK Gaming has secured game certification for Switzerland’s regulated iGaming market, clearing the supplier to offer its online casino portfolio to licensed Swiss operators.

The company said the approval was granted under the Swiss Federal Gambling Act (Geldspielgesetz), which sets requirements around game fairness, security, and player protection. PopOK Gaming said it passed the necessary evaluations to meet local technical and regulatory standards.

According to PopOK Gaming, Swiss operators will be able to integrate an initial line-up including “high-volatility slots, unique artistic games, and instant games,” alongside mechanics such as animations and gamification features.

PopOK Gaming said the Swiss certification supports its broader European expansion strategy and that it is open to partnership discussions with licensed operators in the market.

The post PopOK Gaming secures Swiss certification to supply online casino games appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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