The Nevada Gaming Commission unanimously rejected a stipulated settlement with sportsbook operator CG Technology Thursday, saying the agreed upon fine of $250,000 was “too low” and further disciplinary action could possibly amount to a license “revocation.”
The company had already paid multi-million-dollar fines for previous disciplinary actions, $5.5 million in 2014 and $1.5 million in 2016. Those actions led to the ouster of former CEO Lee Amaitis.
“I have zero appetite to move forward with this settlement with CG Technology,” Gaming Commission Chairman Tony Alamo said at the hearing. “My comfort level with CG Technology is zero.”
In a four-count complaint, CG Technology was accused of accepting multiple wagers on the company’s mobile betting application in both 2016 and 2017 that were placed by customers from outside Nevada, including Maryland, Texas, Arizona and California; accepting bets on games and events that had already concluded; miscalculating payouts on single game and round robin parlay wagers; and incorrectly setting up a satellite sports betting station at an undisclosed casino’s Super Bowl party.
The Control Board, in settling the complaint with CG, said a mitigating circumstance for the settlement was that the company self-reported the missteps.
“I’m not all that impressed that they self-reported,” said Gaming Commission member Philip Pro, a former federal judge. “That’s not a mitigating factor in my view. That’s what you’re supposed to do.”
Gaming Commissioner John Moran Jr., who, along with Alamo, participated in all the disciplinary settlements involving CG Technology, said “This is not a fine issue. It’s a revocation issue.”
CG Technology CEO Parikshat Khanna declined comment while leaving the hearing after the vote.
In the stipulated settlement, CG Technology agreed to transition within six months “to an unaffiliated third party’s sports pool wagering system.” All components that make up CG’s Cantor Sport Book have been “deemed permanently disapproved… and will not be considered for future approval” by gaming regulators.
(This story will be updated)
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
