CG Technology is still in business after the Nevada Gaming Commission accepted their settlement offer of $2 million. The payment will cover their most recent violations committed in 2016 and 2017. The sportsbook operator self-reported the violations earlier this year.
The new settlement offer was presented on November 8 and quickly accepted. This is a large increase from CG Technology’s original, paltry $250,000 settlement offer, which the Nevada Gaming Commission quickly rejected.
Seems like CG Technology is the cat with nine lives. The company is able to stay in business despite receiving three fines for gaming violations. Certainly, this $2 million fine will help cover recent violations that include:
- Accepting out of state wagers
- Taking wagers after the events were over
- Incorrectly paying bettors
In 2016, CG Technology accepted mobile wagers from Arizona, Texas and California. That same year, they took nine wagers after a college football game was over.
In 2017, CG Technology overpaid nearly 800 bettors while underpaying 700 bettors.
$2 million settlement
The settlement with the Nevada Gaming Commision comes in two parts. The actual fine for these offenses is $1.75 million. The settlement also includes another significant piece. CG Technology must make $250,000 contribution to the Nevada Council on Problem Gaming.
In addition to financial payments, CG Technology will employ a Corporate Social Responsibility Officer. This employee will provide “meaningful contributions to the Nevada gaming community and employee training.”
History of fines
In 2014, CG Technology (then Cantor Gaming) was fined $5.5 million for multiple offenses. These included accepting illegal wagers and employing someone who was an agent in a nationwide illegal betting operation.
In 2016, they were fined $1.5 million for technology problems. As part of the settlement, CEO Lee Amaitis was forced to resign.
CG Technology stays in business
The history of violations by CG Technology was taken extremely seriously. Consequently, the NGCB considered revoking their gaming license for now.
Above all, CG Technology will continue to operate their Las Vegas sportsbooks at Cosmopolitan, Hard Rock, Palms, Palazzo, Silverton, Tropicana and Venetian. Likewise their mobile wagering app will also remain operational, however, there will be some changes.
Moving ahead with mobile
The settlement states that CG Technology must use an “unaffiliated third-party sports pool wagering system” moving forward. They have three months to come up with an entirely new mobile wagering solution.
Somewhat related, DraftKings has been acquiring top sportsbook talent in Las Vegas. Therefore, a combination of DraftKings technology and CG Technology brick-and-mortar locations seems like a potential partnership opportunity.