The Nevada Gaming Commission has accepted a $2 million settlement offer from CG Technology, allowing the company to continue its business operations. The payment is to cover the sportsbook operator’s most recent violations, which were committed in 2016 and 2017 and self-reported earlier this year.
The Nevada Gaming Commission quickly accepted the new settlement offer presented on November 8, which was a significant increase from the original, measly settlement offer of $250,000 from CG Technology that was swiftly dismissed.
Recent violations
It appears that CG Technology is akin to a cat with nine lives, being able to sustain its business operations even after being fined three times for gaming violations. Undoubtedly, the recent $2 million fine will contribute towards covering the cost of their most recent infractions which include:
- Taking bets from out of state
- Placing bets after the events had concluded
- Paying bettors incorrectly
CG Technology, in 2016, took mobile bets from Arizona, Texas, and California. They also accepted nine bets that year once a college football game had concluded.
In 2017, CG Technology overcompensated approximately 800 bettors and undercompensated 700 bettors.
$2 million settlement
The agreement with the Nevada Gaming Commission entails two components. Firstly, CG Technology is required to pay an actual fine of $1.75 million for these offenses. Secondly, the settlement also mandates a significant contribution of $250,000 to the Nevada Council on Problem Gaming.
Besides monetary compensations, CG Technology will also appoint a Corporate Social Responsibility Officer. This role will entail making significant contributions to the Nevada gaming community and facilitating employee training.
History of fines
In 2014, CG Technology, formerly known as Cantor Gaming, received a fine of $5.5 million for numerous violations. These infringements included handling illegal bets and hiring an individual who was involved in a nationwide illicit gambling operation.
In 2016, due to issues with technology, they were penalized with a $1.5 million fine. The settlement also required the resignation of CEO Lee Amaitis.
CG Technology stays in business
The NGCB seriously considered revoking CG Technology’s gaming license due to their history of violations.
CG Technology will primarily continue to run their Las Vegas sportsbooks at Cosmopolitan, Hard Rock, Palms, Palazzo, Silverton, Tropicana, and Venetian. Similarly, their mobile wagering app will stay functional, although some modifications will occur.
Moving ahead with mobile
The settlement mandates that CG Technology is to utilize an “independent third-party sports pool betting system” in the future. It also gives them a three-month window to develop a completely new mobile betting solution.
DraftKings, in a somewhat related move, has been acquiring top sportsbook talent in Las Vegas. This suggests that there could potentially be a partnership opportunity involving a combination of DraftKings technology and the brick-and-mortar locations of CG Technology.
