

Canada
Gold Rush Amusements, Inc. Files Counterclaim Alleging Violation of Illinois’ Anti-Inducement Law
Daniel Fischer, the principal owner of the Dotty’s chain of video gaming cafés in Illinois, who is also involved in bids for new casino licenses in Rockford and Calumet City, paid just $2 million in 2018 to expand his network by purchasing 63 lucrative Stella’s and Shelby’s video gaming establishments, according to a newly disclosed counterclaim filed by Gold Rush Amusements. At the same time, Midwest SRO, LLC, a terminal operator that already serviced Dotty’s establishments, allegedly paid an additional $44.5 million to Stella’s and Shelby’s owners as part of a calculated sham transaction. The filing alleges that Midwest SRO’s payment violated the Illinois Gaming Act because it constituted an improper inducement to replace Gold Rush as the terminal operator in 44 of the Stella’s and Shelby’s locations.
Disclosure statements filed last summer with the Illinois Gaming Board identified Gordon Sondland as holding an interest of five percent or more in Illinois Café and Service Company, LLC (ICSC), Fischer’s company that owns the Dotty’s chain in Illinois. Sondland, an Oregon hotel developer who recently served as President Trump’s Ambassador to the European Union, was a key witness who changed his testimony in the President’s impeachment proceedings.
The newly disclosed court documents resulted from a Cook County judge’s order lifting confidentiality designations that had previously hamstrung Gold Rush Amusements, Inc., and its executive Rick Heidner from knowing and revealing the details of the alleged sham transaction involving ICSC, Midwest SRO, and Laredo Hospitality Ventures, LLC, the parent company of Stella’s and Shelby’s. The ruling allows Gold Rush and Heidner, for the first time, to fully learn and publicly disclose the details of the transaction, including the allegedly improper inducement paid by Midwest SRO, a Gold Rush competitor.
“Gold Rush has compelling evidence that the Transaction was the culmination of a multi-year, concerted effort between and among Midwest SRO, ICSC, and Laredo (and their principals) to replace the Gold Rush Contracts with contracts benefitting Midwest SRO,” Gold Rush alleges in the newly unmasked court document.
Under state law, establishments and terminal operators must equally split 67 percent of a machine’s profits, while the remaining one-third goes to state and local taxes. In fiscal year 2019, Illinois’ 32,000 video gaming terminals yielded nearly $1.6 billion in net revenue.
A nine-page ruling lifting the document’s confidentiality on March 13 by Cook County Circuit Associate Judge Sanjay T. Tailor also favors the public’s right of access to court documents.
“Equity demands that Gold Rush be permitted to publicly make its claims of wrongdoing against the Establishments and Midwest, and their respective principals, just as the Establishments and Midwest have publicly made their claims of wrongdoing against Gold Rush,” Judge Tailor wrote.
The ruling involves Gold Rush’s counterclaims against 44 Stella’s and Shelby’s gaming cafes in which Gold Rush began accumulating agreements to place its video gaming terminals in 2013. Those 44 establishments sued Gold Rush in early 2019 to terminate the contracts. A year later, Gold Rush filed its counterclaims and additional claims against Fischer, the other principals, and the companies that were involved in the November 2018 transaction, which purported to change ownership of all 63 Stella’s and Shelby’s establishments in suburbs surrounding Chicago. Until now, the details of Gold Rush’s allegation that the parties engaged in an improper sham transaction were shielded by a court protective order that allowed the opposing parties to designate key documents relating to the transaction as “attorneys eyes only,” meaning that Gold Rush’s counsel could not even share the documents with their client.
Now fully public, Gold Rush’s counterclaim alleges that Midwest SRO, and its principal, Allyson Estey, paid more than $44.5 million ― or 95.7% of the value of the deal ― to Laredo, the parent company of Stella’s and Shelby’s, and one of its owners, Gary Leff. The filing alleges that Midwest SRO’s payment was part of a conspiracy to oust Gold Rush as the terminal operator and place Midwest SRO’s video gaming terminals in 44 of the establishments.
At the same time, Fischer’s ICSC, which operates Dotty’s in Illinois, paid just $2,000,001 ― or 4.3% of the deal’s overall value ― to purchase Laredo’s actual assets and cafés, which generate substantial revenue from video gaming. Fischer became involved in Dotty’s when he and his former business partner, Marwin Hofer, purchased Dotty’s Oregon establishments from the chain’s founder, Craig Estey, who is Allyson Estey’s father.
Hofer, a South Dakota businessman, was the initial managing member of a South Dakota limited liability company that continues to hold an interest of five percent or more in Fischer’s ICSC, as does a living trust in the name of Hofer’s wife. Hofer was convicted of federal wire fraud in 2017. The offices of Fischer’s ICSC and Allyson Estey’s Midwest SRO are housed in adjacent business suites in suburban Bensenville.
When the designated confidential documents were produced in the litigation last summer, Gold Rush’s attorneys began to unravel the complex sham transaction. The documents revealed that Leff had agreed to be bound by restrictive covenants that did not exist until the day of the transaction, and Midwest SRO purchased those covenants from Laredo for more than $34.6 million. Leff was also allowed to retain unspecified intellectual property valued at $9.85 million. There was no indication of how the restrictive covenants or intellectual property values were calculated. Leff further received a 10 percent interest in Midwest SRO and the right to have his interest redeemed for $9.85 million approximately a year after the transaction. At the same time, Fischer’s ICSC purportedly purchased the Laredo establishments for $1, and paid just $2 million to acquire the outstanding interests in Laredo.
Gold Rush’s complaint names Fischer, Leff, Allyson Estey, and Charity Johns, who was Laredo’s CEO and became CEO of Fischer’s ICSC, as defendants. The counterclaims and complaint allege that those individuals and their companies ― ICSC, Midwest SRO, and Laredo ― conspired for years to evade the legal restrictions separating establishments, on one hand, and terminal operators, on the other hand. After previously failing to accomplish so-called vertical integration, first through legislation and then litigation, Gold Rush’s adversaries allegedly tried a third route ― conspiring in an improper deal in which Midwest SRO paid an improper inducement to be installed as the terminal operator for all of the Laredo establishments, supplanting Gold Rush in the process.
Judge Tailor’s ruling observed that the opposing parties had repeatedly emphasized their disclosure of the transaction details to the Illinois Gaming Board, “as if to suggest they had obtained its blessing.” However, the IGB did not bless or approve the transaction, the judge noted, but rather said only, in an October 2018 letter, that the state’s video gaming act and rules did not allow the IGB to prohibit the transaction.
Gold Rush also claims that its adversaries provided select or mischaracterized information to the IGB to portray Gold Rush as attempting to disrupt the transaction after it was completed, which became the basis of a disciplinary complaint against Gold Rush. At the time, however, Gold Rush’s Heidner did not know the details of the transaction or that Fischer’s ICSC had paid only $2 million for Laredo’s assets and cafés.
Gold Rush’s counterclaims allege breach of contract, tortious interference with contracts and prospective business advantage, and civil conspiracy. Gold Rush seeks unspecified damages for harm to its business and reputation, as well as attorneys’ fees and costs.
SOURCE Gold Rush Amusements, Inc.
BetVictor
BetVictor Canada launches Tracy McGrady Safer Gambling campaign

BetVictor Canada has launched its new out-of-home advertising campaign across the streets of Toronto to promote NBA legend Tracy McGrady as its Safer Gambling Ambassador.
Two mobile digital trucks strategically targeting high-traffic areas near Scotiabank Arena, Rogers Centre, and major sporting events will provide prime audience exposure for the campaign, scheduled around Toronto Maple Leafs, Toronto Raptors, and Toronto Blue Jays home games.
To further enhance the campaign’s reach, BetVictor Canada has partnered with Clear Media Group to leverage digital taxi tops across Toronto, providing city-wide exposure with 100 taxis displaying key brand messaging. These digital taxi tops will run during peak evening hours (5:00pm – 9:00pm) on select dates until April 5th, 2025.
The campaign coincides with Problem Gambling Awareness Month, a nationwide grassroots campaign held each March that seeks to increase public awareness of problem gambling and promote prevention, treatment, and recovery services.
BetVictor Canada offers an array of tools and services to help its Canadian customers bet and play safely and responsibly, across a host of sports betting markets and online casino games.
Mark Harper, Head of Emerging Markets at BV Group, said: “BetVictor is delighted to be participating in the National Council of Problem Gambling campaign in March, to help increase public awareness of problem gambling and the need to promote prevention, treatment and recovery services.
“In using our Safer Gambling Ambassador, Tracy McGrady, to raise awareness about BetVictor’s safer gambling tools such as loss limits, time alerts and product restrictions we are dedicated to ensuring all players have a safe gambling experience. #PGAM2025.”
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AGCO
AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers
The Alcohol and Gaming Commission of Ontario (AGCO) has served BetMGM Canada Inc. with an Order of Monetary Penalty (OMP) of $110,000 for violations of the Registrar’s Standards for Internet Gaming.
In two separate incidents in 2024, BetMGM engaged marketing companies who offered cash to members of the public in return for opening new BetMGM accounts. The marketing activities occurred in public forums, such as a major national trade conference. Under AGCO’s Standards, operators are responsible for the conduct of their third-party suppliers who are contracted to support the operator’s Ontario gaming business, and must require their third-parties to meet Ontario laws, regulations and standards (Standard 1.19).
Ontario is one of the first jurisdictions in the world to establish and enforce rules that strictly limit high-risk inducement advertising and marketing in the online gambling industry. Registered iGaming operators are prohibited from offering gambling inducements, bonuses and credits as part of their broad public advertising and marketing activities (Standard 2.05). These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.
A registered operator served with an OMP by the AGCO has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.
QUOTE
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.”
Dr. Karin Schnarr, Chief Executive Officer and Registrar – AGCO
ADDITIONAL INFORMATION
BetMGM Canada Inc. failed to comply with the Registrar’s Standards for Internet Gaming. Specifically, the licensee failed to comply with the following provisions of the Standards:
- 1.19 Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operator’s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
- 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.
Contrary to the Standards, BetMGM Canada Inc. and/or their affiliates allegedly engaged in the following activities:
a) | On or about January 13 and 14, 2024, BetMGM representatives were alleged to have attended the National Franchise Show and were offering $100 in cash to new players for opening a new account and depositing $15. |
b) | On or about March 11, 2024, BetMGM acknowledged that its marketing affiliate “Above the Street” had engaged in prohibited inducement marketing. The conduct resulted in 377 player sign-ups and $127,180.00 in commissions to “Above the Street”. |
c) | On or about April 13, 2024, another BetMGM marketing affiliate “Maple Leaf Marketing” engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. The conduct resulted in 94 player sign-ups and about $34,000.00 in commissions paid to “Maple Leaf Marketing”. |
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BCLC
BCLC Launches “What’s played here stays here” Campaign

BCLC’s new “What’s played here stays here” campaign is issuing an important reminder to British Columbians who choose to gamble – specifically that all net profit its operations generate stays in B.C. to help fund critical services like education, health care and community programs.
The campaign also reinforces that all other gambling websites operating in B.C. are illegal and take away funds from critical community programs and services.
“Across B.C. and Canada, we’ve seen incredible groundswell around the importance of buying and supporting local, and that’s no different for British Columbians who choose gambling for their entertainment. We want our B.C. players to know they can find a world-class gambling experience in their own backyard, whether it’s at one of our 33 casinos, 3,400 lottery retailers, or online at PlayNow.com, and that the proceeds from their play with BCLC make a positive impact at home in their community,” Pat Davis, President and CEO of BCLC, said.
Along with illegal online gambling websites, BCLC also competes with Washington State and Las Vegas casinos, all of which aggressively market to B.C. residents.
“BCLC continues to raise awareness that these gambling options do not support B.C.’s economy and take away funds from vital provincial and community-based programs and services. In a time when British Columbians are standing united, we want to reinforce that playing together with BCLC helps make B.C. even better,” Pat Davis added.
The post BCLC Launches “What’s played here stays here” Campaign appeared first on Gaming and Gambling Industry in the Americas.
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