The ongoing problems for Nevada sportsbook operator CG Technology have been put to rest — for now, courtesy of a $2 million settlement.
The Nevada Gaming Commission accepted a settlement proposed by CG on Thursday for various violations related to problems with its sports betting technology and erroneous payments of wagers.
That means that CG, which operates a number of sportsbooks in and around Las Vegas, will continue booking wagers in the state.
What happened with CG and Nevada
CG recently offered a new settlement offer — which you can see here — after a settlement of a fine of $250,000 along with other stipulations was rejected in August for not being punitive enough.
The settlement was meant to deal with 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 new settlement ended up being eight times the original:
- A $1.75 million fine
- A $250,000 contribution to the Nevada Council on Problem Gaming
“We are satisfied with the resolution agreed to today by the Commission,” CG CEO Parikshat Khanna said in a statement. “We remain committed to the Nevada sportsbook business and the long-term partnerships we have established with some of the finest resort operators in the world. Additionally, we look forward to the growth prospects of the industry nationwide.”
CG stays in business
At one point in time, it appeared CG’s license to operate in Nevada was in some jeopardy. The company has paid millions of dollars in fines for past transgressions related to its sports betting operation, and some thought this could be the final straw.
Now, its sportsbooks in casinos like The Cosmopolitan, Venetian, Tropicana, Palms and Hard Rock will remain open.
But the technology behind the CG sportsbooks will have to change. The new settlement gives CG three months to move to an “unaffiliated third-party sports pool wagering system.”
Where that technology comes from remains to be seen.
