LAS VEGAS — The Nevada Gaming Commission unanimously rejected Thursday a proposed settlement with CG Technology over multiple statutory violations by the sports betting bookmaker.
Commissioners instead made clear they will consider revoking CG’s gaming license for violations including allowing out-of-state mobile wagers, accepting bets after the conclusion of an event, and paying out both too much and too little on certain wagers. The company also took improper bets at a Super Bowl party when the wrong lines were displayed on a terminal.
The Nevada Gaming Control Board negotiated with CG a $250,000 fine and a requirement that it abandon its bookmaking technology within six months. The loss of the technology also incurs a significant cost to CG, which will have to bring in third-party software if it survives.
How the settlement amount was reached
NCGB representatives said the relatively light $250,000 fine came in part because CG self-reported its current violations and made efforts to correct the problems. The board also considered the inherent financial penalty in CG switching away from its proprietary technology. Board attorneys negotiated the settlement terms with CG counsel and the settlement advanced from the NCGB to its parent commission.
Commissioners roundly dismissed those recommended penalties as too light for a company with CG’s checkered history in Nevada sports betting. All five commissioners excoriated the company for not cleaning up its house after major previous violations and fines.
The bookmaker paid fines of $5.5 million in 2014 and $1.5 million in 2016 for previous violations including accepting illegal wagers and assisting an illegal sports betting operation. The 2016 case prompted commissioners to consider license revocation, something they did not forget Thursday.
“You’ve been called to the principal’s office three times,” said Commissioner Deborah Fuetsch. “When do we draw the line? When does this kid not get to come back to school?”
Fine could grow many times over … or worse
Commission chairman Tony Alamo said the fine for the current situation should at least match the $1.5 million and made clear money alone might not solve the situation.
“Revocation is not off the table,” Alamo said.
CG will have 30 days from receipt of Thursday’s official transcript to respond. A revised settlement is a possibility, but commissioners also could call for an evidentiary hearing that would put license revocation in play.
“This isn’t a fine issue. This to me is a revocation issue,” said Commissioner John Moran. “I can’t think of a more egregious ongoing pattern of violation of the regulations and the statutes of the state of Nevada.
CG Technology declined comment after the meeting. The company operates sportsbooks at The Cosmopolitan, Venetian, Tropicana, Palms and Hard Rock in Las Vegas.