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Gold Rush Amusements, Inc. Files Counterclaim Alleging Violation of Illinois’ Anti-Inducement Law

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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.

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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.

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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.

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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.

 

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CasinoCanada Started a New Partnership With Ocean Spin by LaLa Stars

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CasinoCanada, the number one gambling guide for players in Canada, is thrilled to announce its new partnership with Ocean Spin a brand under the umbrella of LaLa Stars.

This collaboration marks an exciting step in CasinoCanada’s mission to provide its audience with the most comprehensive and up-to-date information on top gaming experiences.

The partnership agreement will grant LaLa Stars premium visibility across high-traffic sections of CasinoCanada’s website, which has been a trusted source for Canadian players for over 20 years.

LaLa Stars presents itself as an affiliate program that generates double-digit profits by making it easy and enjoyable to promote the brands. The program features a memorable design, a player-centric retention system, top-tier payment options, and game providers. Fast payments, flexible commission models, high-converting brands, powerful reporting, no middlemen, and outstanding conversion make LaLa Stars a popular choice. Additional company benefits are: a revenue share of up to 60%, a CPA of up to €500, hybrid CPA.

Ocean Spin Casino, a brand of LaLa Stars company, despite being quite new on the iGaming market, is a huge online gambling platform where all casino newcomers are greeted with a welcome bonus of 100% for up to €500, and 200 free spins plus one Bonus Crab. It comes as a first deposit bonus for a minimum deposit amount of €20. Sports-betting enthusiasts can also claim a welcome bonus of 100% for up to €100.

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Ocean Spin Casino’s games include: gaming machines, roulette blackjack, betting, video poker, bingo, baccarat, jackpot games, and live games.

“We are excited to meet our new partner Ocean Spin Casino, and hope to bring maximum use and value to our community,” said Aleksandra Drigo, Sales Director at CasinoCanada. “This partnership perfectly reflects our dedication to highlighting the best in the gaming industry while offering our audience valuable insights and chances to experience top-notch gaming. We hope for a productive and long-term partnership!”

The partnership is now live, featuring LaLa Stars reviews and exclusive offers on the CasinoCanada website. This collaboration is set to deliver even more thrilling updates, exclusive content, and personalized promotions for the Canadian gambling community.

The post CasinoCanada Started a New Partnership With Ocean Spin by LaLa Stars appeared first on Gaming and Gambling Industry in the Americas.

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Blueprint Gaming partners with Rush Street Interactive to further expand Ontario reach via BetRivers platform

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Blueprint Gaming, the leading UK slots developer and member of the Merkur Group, has doubled down on its Canadian footprint following a partnership with industry leading online casino and sports betting company, Rush Street Interactive, in Ontario.

The agreement will see a host of Blueprint’s top performing games made available to a new wave of slot enthusiasts, including its Megaways offering featuring Napoleon Megaways and Majestic Fury Megaways, as well as the company’s renowned branded library offering the likes of Rick and Morty: Strike Back and The Lost Boys.

Founded in 2012, RSI has become a market leader in online casinos and sportsbooks across the Americas and is set to have its expansive portfolio of slots elevated by Blueprint’s engaging titles featuring sought after mechanics.

The agreement underlines Blueprint’s ever-expanding global footprint and aligns with its strategic roadmap for Canada where its games continue to resonate with players across the country.

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Samuel Haggblom, Director of Key Accounts at Blueprint Gaming, said: “The popularity of Blueprint slots continues to grow across Canada and the Americas, and so we are delighted to go live with an industry renowned operator in the region.

“This exciting deal pays further testament to how our games can resonate with players in multiple markets worldwide and we look forward to seeing the response from BetRivers players.”

Richard Schwartz, CEO for Rush Street Interactive, said: “Blueprint Gaming boasts a growing collection of exciting titles, and we are thrilled to be working with them to bring these games to our BetRivers players in Ontario.

“We are happy to partner with Blueprint Gaming and look forward to watching this collaboration flourish.”

The post Blueprint Gaming partners with Rush Street Interactive to further expand Ontario reach via BetRivers platform appeared first on Gaming and Gambling Industry in the Americas.

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Nearly half of Ontarian viewers wagering on Super Bowl LIX

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The latest sports betting survey from the Responsible Gambling Council (RGC) shows the majority of Ontarians plan to watch Super Bowl LIX (63 per cent) and almost half of viewers will place a wager on the big game (48 per cent).

Over a third of Ontario adults have initiated a bet after seeing a gambling advertisement online or on TV (35 per cent); more so among populations at-risk for problem gambling, including those under age 44 (42 per cent) and Black, Indigenous, and People of Colour (BIPOC) individuals (44 per cent).

Two thirds believe their sports knowledge gives them an edge in predicting outcomes (67 per cent), particularly men and those aged 18-44 (70 per cent). While knowledge and skill does inform a bet, it doesn’t guarantee a win. The misconception that one can accurately predict an outcome can lead to over confidence that their knowledge will give them an advantage and ultimately, a win. This is known as the illusion of control. This false belief paired with persuasive gambling advertising can increase risk, influencing some to bet more than they can afford to lose. More than a third report doing so in the past 12 months (36 per cent).

Key survey highlights

How Ontarians plan to bet:

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  • 50 per cent will bet online with a sportsbook website
  • 30 per cent will bet with family and friends
  • 27 per cent will buy sport-based lottery tickets
  • 20 per cent will bet in a pool

How much they plan to wager:

  • 55 per cent say they will bet $100 or less
  • 19 per cent will bet between $101 and $500
  • 8 per cent plan to wager more than $500

Number of bets they’ll make:

  • 55 per cent will bet a single time on the outcome of the game
  • 25 per cent will bet multiple times throughout the game using one sportsbook website
  • 15 per cent will bet using several sportsbook websites

“Gambling is random but your plan shouldn’t be,” says Sarah McCarthy, CEO, Responsible Gambling Council. “Perceived knowledge of the game, persuasive advertising, and substance use can all influence how we gamble. A smart plan includes being mindful of the illusion of control and remembering that even with sports expertise, understanding the game, players or stats won’t boost your chances of predicting a random outcome.”

RGC tips for safer sports betting

  • Be mindful of the illusion of control. Remember that even with sports expertise a win is not guaranteed and understanding the game, players or stats won’t boost your chances of predicting a random outcome
  • Be aware that time spent, and knowledge gained won’t help you “beat the odds”
  • Plan before you play – pre-set betting limits and stay within your budget
  • Only gamble with money you can afford to lose – never borrow money or use money intended for necessities, like rent/mortgage or food
  • Never chase losses by trying to win back what you’ve lost
  • Limit your alcohol, cannabis, and/or other substance intake
  • Don’t bet if you are upset or stressed
  • View sports betting as entertainment, not a way to make money

Detailed survey insights

Half of those who will wager on the Super Bowl say their main reason to bet is to win money (48 per cent), followed by adding to the excitement of the game (47 per cent). About a fifth bet because they believe they are knowledgeable about the teams and players (22 per cent), they feel confident about their chances of winning (20 per cent), or because their favourite team or player is playing (18 per cent). One in ten bets in a mistaken attempt to make up for last year’s losses (10 per cent).

Over half of those who will bet on the big game will place their bets while consuming substances, which are associated with the additional risks of impaired judgement and decision-making (52 per cent). The majority plan to consume alcohol while betting (86 per cent).

While men and women are similarly likely to watch the Super Bowl, men are slightly more likely to place a wager (49 vs 45 per cent). Age and ethnicity also play significant roles. Ontario sports bettors aged 45+ are more likely to bet on the big game (52 per cent) than those aged 18-44 (45 per cent). White individuals are significantly more likely to bet on Super Bowl LIX (54 per cent) compared to BIPOC Ontarians (42 per cent).

Staying onside

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Of those planning to bet on the Super Bowl, the most common strategies to manage their gambling risk remain the same as last year: deciding on a pre-set betting limit (37 per cent), betting to have fun and not to make money (31 per cent), and not betting more to recoup losses (25 per cent).

A quarter of all respondents say they always or often feel anger or frustration at losing a bet (25 per cent), while a third sometimes do (36 per cent). This increases when placing bets while using substances. A third report their gambling has caused them to experience health problems, including feelings of stress or anxiety (36 per cent) over the last 12 months, and that they might have a problem with gambling (36 per cent). These rates are highest among BIPOC Ontarians and those aged 18-34.

As a result, more Super Bowl betters are now paying attention to mood and state of mind when they gamble. Encouragingly, a quarter will avoid betting when feeling emotionally distressed (25 per cent) and a fifth will refrain from betting while under the influence of alcohol or drugs (21 per cent).

To help keep online gambling safer, all regulated sportsbook websites have responsible gambling features. Of those who plan to use online sportsbooks to bet during the Super Bowl, a quarter read online information about the odds of winning and how certain games work (25 per cent) or use money limit-setting tools (23 per cent). A fifth use personalized spending reports or take a cooling off period (20 per cent). Notably, a third don’t plan on using any features to help them manage their betting (33 per cent).

Methodology
An online survey of 1,147 Ontario residents aged 18+ was completed between November 22 – December 6, 2024, using Leger’s online panel. A probability sample of the same size would yield a margin of error of +/-2.9%, 19 times out of 20.

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The post Nearly half of Ontarian viewers wagering on Super Bowl LIX appeared first on Gaming and Gambling Industry in the Americas.

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