Compliance Updates
MGCB Sends Cease-and-Desist Letters to Three Online Gaming Companies

As part of its continued, relentless efforts to halt illegal gaming operations in the state of Michigan, the Michigan Gaming Control Board (MGCB) has recently sent cease-and-desist letters to three online gaming companies — two in the US and one overseas — after investigations revealed the entities are offering online gaming in Michigan without licenses to do so legally.
PredictionStrike Inc., in Bay Shore, New York; Sweepstakes Limited (Stake.us), in Limassol, Cyprus; and VGW LuckyLand, Inc. (VGW) in San Francisco, California — whose parent company is VGW Holdings Ltd., a global technology online social gaming company headquartered in Australia — were each sent cease-and-desist letters on Oct. 19, Nov. 2, and Dec. 5, 2023, respectively.
“Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan. We do not want businesses who skirt the law having access to Michigan citizens and leaving them vulnerable because they are playing on unregulated sites that leave them with no recourse, and that siphon funds away from communities because they are not paying taxes like a regulated, legal gambling establishment would,” MGCB Executive Director Henry Williams said.
The companies’ violations include:
- Offering internet gaming and internet sports betting in Michigan without being licensed in the state as an internet gaming operator and a sports betting operator (PredictionStrike).
- Promoting an unlicensed online lottery and/or raffle for customers that buy its products through its internet website (Stake.us).
- Conducting illegal gambling by offering an internet game in which a player wagers something of monetary value for the opportunity to win something of monetary value (VGW).
Due to their unregulated and unlicensed online gaming offerings, PredictionStrike, Stake.us, and VGW are in violation of the following Michigan gaming laws, including:
- Lawful Internet Gaming Act, which states that internet gaming may only be offered by a licensed internet gaming operator, and the Lawful Sports Betting Act, which states that internet sports betting may only be offered by a licensed sports betting operator or its licensed sports betting platform provider. Only casinos that are currently licensed under the Michigan Gaming Control and Revenue Act and federally authorized tribal casinos within Michigan can apply for an internet gaming operator license or a sports betting operator license.
- Michigan Gaming Control and Revenue Act, which prohibits a party from conducting a gambling operation without a license issued by the MGCB. A party who operates an unlicensed gambling operation is guilty of a felony punishable by imprisonment for up to 10 years or a fine of up to $100,000, or both.
- Michigan Penal Code, which broadly prohibits any form of unauthorized gambling involving consideration, prize, and chance. For example, accepting money, or anything of value, with the understanding that money, or anything of value, will be paid to any person based on the outcome of an uncertain event is prohibited.
PredictionStrike Inc., Sweepstakes Limited (Stake.us), and VGW LuckyLand, Inc. (VGW) have each taken steps to prevent Michigan residents from gambling on their websites.
Canada
AGCO Removes Cap on Seller Commission for Charitable Lottery Products

The Alcohol and Gaming Commission of Ontario (AGCO) has updated several lottery policies to remove the cap on seller commission for Paper Raffles and Media Bingo, along with removing the prohibition on Catch the Ace paper lotteries, to align with other charitable lottery products.
Licensed charities may now negotiate commissions directly with sellers and determine commissions, provided they are reasonable and tied to the cost of service provided by the seller.
These updates further the AGCO’s commitment to adopt an outcomes-based regulatory approach and reduce burden for the charitable gaming sector. Local charitable organizations will have greater flexibility to make decisions that best serve their fundraising objectives.
Important Reminders
• Charities must still receive approval for other expenses incurred under their licence and retain receipts for seller commission paid.
• Licensing authorities will not require documentation to be submitted as part of the application process, however, charities are still subject to audit to determine compliance.
• Charities are reminded of their legal requirement to meet their obligations under the Criminal Code and with respect to conducting and managing a charitable gaming scheme.
• As with all licensed charitable lottery events, charities must take the necessary steps to ensure that they are conducting and managing the lottery event within Ontario.
For charitable gaming-related inquiries, email an AGCO Eligibility Officer at [email protected] or call AGCO Customer Service at 1-800-522-2876, Monday to Friday from 8:30 a.m. to 5 p.m.
Canada
Segev LLP Celebrates 10 Years of Business-Focused Legal Innovation

Leading business, technology, finance, and gaming law firm, Segev LLP, is proud to announce its 10th anniversary. Over the past decade, Segev has evolved from a bold idea into a multi-jurisdictional firm serving clients across Canada, the U.S., and beyond.
Built for innovation-driven industries, the firm is widely recognized for its work with companies at the forefront of gaming, crypto, technology, and emerging sectors. “Our 10-year anniversary is a defining moment,” said Founding Partner, Ron Segev. “It’s a testament to the strength of our team and our culture of teamwork, self-improvement, and growth – all of which is directed at scoring wins for our great clients.”
As industries like fintech, crypto, iGaming, and AI have matured, so has the firm, often in parallel with its clients. “We’ve all grown together with our clients from one success to the next, whether it be helping clients complete financings or helping them close business,” said Managing Partner Alon Segev. “I look forward to continued growth for us and our clients in the next 10 years!”
The firm’s client-first approach has consistently earned recognition from top legal ranking guides. Segev LLP is ranked by Chambers and Partners as a “Leading Firm” and “Band-1” in Canada for Gaming Law and are also recommended by The Legal 500 and Lexology. These rankings reflect the team’s ability to deliver strategic, high-quality legal solutions that align with their clients’ business goals.
Recognized for their unique ability to exceed expectations and deliver out-of-the-box solutions, Segev LLP’s clients have affirmed: “The firm demonstrates its capability not only to understand complex matters, but also to offer solutions that are practical, pragmatic, and value-adding.”
“Segev possesses outstanding resources and maintains global partnerships, enabling it to deliver precise and informed responses to any queries related to the iGaming industry.”
“Epic service, very good, I won the case!”
“Great service, friendly atmosphere, and support.”
Several Segev team members also reflected on the milestone: “There was a moment early in my time here when I realized I wasn’t just being brought in to help; I was expected to contribute, take initiative, and run with big ideas. That stuck with me,” said Negin Alavi.
“Together with our clients, [Segev] has experienced remarkable growth over the past decade. I’m honored to have contributed to this journey and to celebrate these shared successes,” said David McHugh.
“Segev has cultivated a thriving law practice on the principle that challenges are to be embraced as opportunities. The approach has enabled us to grow as lawyers, but more importantly, it has enabled us to ensure the success of our clients,” said Mark Balestra.
“Since joining through Segev’s Ontario expansion, I’ve had the chance to work alongside some of the sharpest and most collaborative lawyers in the gaming space,” added Manav Bhargava. “As a full-service firm and industry leader, Segev stands out for its ability to support innovative businesses with practical, forward-thinking legal advice.”
Segev LLP will commemorate the anniversary with a series of internal and external initiatives throughout the remainder of the year.
Compliance Updates
Illinois Gaming Board Announces Enhanced, Uniformed Advertising Rules for Casinos, Video Gaming and Sports Wagering

The Illinois Gaming Board (IGB) adopted new rules that expand existing restrictions on advertising, marketing and promotions for licensed casino, video gaming, and sports wagering operators including a ban on advertising on college campuses and new requirements to protect the public, especially young people and problem gamblers.
“By adopting these measures, the IGB is building upon existing regulations to implement additional safeguards and standards that further protect the public and encourage responsible gambling habits. These regulations provide for clear, consistent, ethical, and transparent advertising and marketing guidelines for all casino, video gaming, and sports wagering operations under IGB jurisdiction,” said IGB Administrator Marcus D. Fruchter.
While previous IGB rules placed restrictions on advertising and promotional content which included prohibitions against false or misleading claims and other restrictions, the new rules go farther to ensure advertisements are not placed in locations where they are likely to be seen by underage or vulnerable populations. The expanded rules also require operators to maintain advertising records and include prominent, responsible gaming messages in advertising, marketing and promotions.
After assessing the advertising and marketing rules for sports wagering adopted in 2020, the IGB determined that those limitations apply equally to video gaming and casinos. The IGB further determined to enhance the existing rules to best assure an ethical advertising environment that restricts enticements to minors and those with gambling problems.
The revised advertising and marketing rules which expanded and codified practices for all gambling segments under IGB jurisdiction are now effective, following a public notice and comment period, the May 13, 2025 approval from the Illinois General Assembly’s Joint Committee on Administrative Rules (JCAR), and publication by the Secretary of State in the Illinois Register Issue 31 on August 1, 2025.
The rules feature requirements for Illinois operators including:
• Prohibition from having advertisements or promotions published, aired, broadcast, displayed, or distributed on any college or university campus, or college or university media outlets such as college or university newspapers and radio or television broadcasts, or any sports venues used primarily for college and university events.
• Prohibition from depicting college or university students, colleges or universities, or college or university settings.
• Retention of copies of all advertising and marketing materials including a log of when and how those materials have been published, aired, displayed, or distributed.
• Allowing patrons the option to unsubscribe or opt out of advertising, marketing or promotional materials. Additionally, operators should comply with any patron request to unsubscribe or opt out of receiving materials as soon as practicable.
• Prohibition on entering into agreements with third parties to conduct advertising or marketing on behalf of, or to the benefit of, the Illinois operator when compensation is dependent upon, or related to, the volume or outcome of wagers.
• Include problem gambling text as determined by the Illinois Department of Human Services in all advertising and marketing materials.
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