Yesterday, the Nevada Gaming Commission reviewed a new offer $2 million made by CG Technology to settle major violations made by the sportsbook operator. The penalty was later approved and accepted by the regulator. The violations include taking out of state bets and erratic payouts on wagers. In August, after self-reporting these violations to the Nevada Gaming Control Board, CG Technology negotiated an initial $250,00 plea-deal with the NGC and proposed this offer to the Commission.
However, the offer was instantly rejected by the Nevada Gaming Commission, especially since CG Technology has a history of violations dating back from 2014. In one of these instances, CG Technology CEO, Lee Amaitis was forced to pay a hefty $5.5 million fine to settle 18 counts, including accepting illegal wagers.
Recently, CG Technology went back to the Commission with another offer that is significantly higher than the $250,000, which was discussed at the regular NGC meeting yesterday. The new $2 million offer includes a $1.75 million fine that will be paid immediately, as well as a $250,000 contribution to the Nevada Council on Problem Gaming within two months.
Earlier, the Commission, clearly fed up with CG Technology’s continued violations, made it clear that it was seriously considering the revocation of the group’s license to operate sportsbook in the state.
Nevada Commissioner, John Moran said it quite bluntly. “This isn’t a fine issue. This is to me a revocation issue. I can’t think of a more egregious ongoing pattern of violation of the regulations and the statutes of the state of Nevada.”
CG Technologies operates sportsbooks at gambling locations such as Tropicana and the Venetian in Las Vegas.
Some of the violations included allowing someone from Maryland to place a bet on CG’s mobile app. State legislation dictates that bets may only be accepted by players who are physically located in the state. The operator also accepted bets on mixed martial arts and other events after they had concluded. They were also charged with incorrect payouts on winning bets to 1,500 bettors. Some received more than expected, while others received less.