CG Technology, once known as Cantor Gaming, has come to an agreement with the Nevada Gaming Commission to pay $2 million in fines for a slew of sportsbook violations. The settlement will allow CG Technology to keep its gaming license, which seemed to be seriously in jeopardy.
CG Technology operates sportsbooks at the M Resort, Hard Rock Hotel & Casino, Tropicana Las Vegas, Cosmopolitan of Las Vegas, Venetian Casino Resort, Palms Casino Resort, and the Silverton Casino Lodge Las Vegas. According to the complaint filed on August 8th, 2018, the company screwed up royally in a number of areas:
CGT’s most recent failures: 1) resulted in unlawful interstate wagering on sporting events in violation of the Commission’s Regulations and that potentially enabled Violations of NRS 465.093 and/or 18 U.S.C. §1084 (Wire Act); 2) resulted in the improper acceptance of sports wagers after the conclusion of events; 3) resulted in CGT incorrectly paying winning wagers; and 4) resulted in the deployment of a miscon?gured satellite sports betting station.Boy, This is a Mess
So let’s see, going into further detail in the first count we have a customer in Maryland placing a mobile bet which resulted in the company making adjustments to its software to prevent something like that from happening again. The fix was never implemented, though, so seven more out-of-state wagers were made.
In count two, CG Technology was found to have allowed people to place bets after a mixed martial arts match and a boxing match were completed. The company admitted its fault, but then it happened again and again – most notably in NCAA football games – during the next year.
For the third count, there was a flaw in the sport betting system where customers who placed bets at the moment odds were changed were given payouts based on the new price instead of the one that displayed on their screen. Nearly 1,500 wagers were affected, with customers winning a total of $7,368 more than expected and others winning a total of $4,465 less than expected. So at least the customers had a net gain, right?
For the last count, CG Technology had setup a betting station for a Super Bowl party that was configured for a “staging environment” rather than a live “production environment.” As such, a number of bets were placed at incorrect point spreads.
CG Technology Tried to Get Off Light, Failed
CG Technology apparently had tried to settle the issue with just a $250,000 fine, but looking at the Gaming Commission’s public records, it appears the Commission said “no dice” on that.
What the two parties have agreed to is that CG Technology will pay a fine of $1.75 million and then another $250,000, the latter sum of which will be earmarked for the Nevada Council on Problem Gambling.
The company is also required to create a position of Corporate Social Responsibility Officer (CSRO), “to enhance [CG Technology’s] meaningful contributions to the Nevada gaming community and employee training. Additionally, the CEO, CFO, Chief Compliance Officer, Chief Legal Officer, and CSRO must all take semi-annual training in gaming ethics and gaming policies and procedures.
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