CG complaint could net fine of $250,000

Company on hook for four errors

The Nevada Gaming Commission will consider levying a $250,000 fine against CG Technologies for four violations alleged by the state Gaming Control Board.

In a settlement and stipulation to be considered by commissioners Thursday, CG Technologies — which operates sportsbooks for the M Resort, the Hard Rock Hotel, the Tropicana, The Cosmopolitan of Las Vegas, The Venetian, the Palazzo, the Palms and the Silverton — admitted to all charges.

The Palazzo sports book is inside Lagasse’s Stadium.

Representatives of CG Technologies said they would not comment on the matter before Thursday’s hearing.

Under terms of the settlement, CG Technologies would have six months to “transition to an unaffiliated third-party’s pool wagering system” and “permanently discontinue the use of its sports pool wagering system and all of its compo-

nents.”

CG also will have 60 days to develop a written internal controls plan to prevent future violations.

The settlement states that, though the board is aware of CG’S regulatory history, the commission should consider that the company

COMPLAINT

self-reported many of the violations, that it has agreed to replace its sports pool wagering system and that the board “perceives that changes have occurred and continue to occur at CGT related to its cooperation with the board.”

CG Technologies was accused of taking wagers from outside the state, taking bets after events had concluded, making incorrect payouts to 1,483 bettors and misconfiguring a satellite sports book betting station for the Super Bowl in February.

Twice fined

The four-count, 17-page complaint, filed by the Control Board on Aug. 8, indicated that CG Technologies had twice been disciplined by the commission.

In January 2014, the company was fined an industry-record

$5.5 million for allowing one of its key executives to run an illegal sports wagering operation. In July 2016, CG Technologies was ordered to pay a $1.5 million fine and establish an escrow account to pay bettors who received lower payments on their wagers than they were entitled to receive.

That action also forced former president and CEO Lee Amaitis to leave the company.

In the most recent complaint, CG was accused of taking seven out-of-state bets through its mobile wagering app, four from San Diego and San Bernardino, California; two from Austin, Texas; and one from Littlefield, Arizona, on April 7 and April 8, 2017.

Those bets were taken after CG self-reported having taken a bet from Maryland on Nov. 7, 2016, and said it would deploy updated geolocation functionality software.

The second count of the complaint said CG took bets in May and October 2016 and October 2017 on events that already had concluded. In May 2016, a complaint was filed against the company for taking post-event wagers on boxing and mixed martial arts events. In October that year, the company reported that it had taken 33 wagers from 14 bettors on college football games.

And in October 2017, the company reported that it had taken nine