CGT reaches settlement with Nevada regulators

CG Technology has been ordered to switch to a new platform in order to continue offering sportsbooks in Nevada as part of a $2m (£1.6m/€1.8m) settlement with the state’s gaming regulators.

The settlement, which includes a $1.75m fine and a $250,000 contribution towards the state’s problem gambling support service, was accepted yesterday (Thursday).

CGT will have to transfer its operations to an “unaffiliated third-party” betting platform within the next three months following multiple failures.

CGT’s original settlement offer of $250,000 was rejected in August, when the Nevada Gaming Commission warned the company that it could lose its licence over the issue following previous infringements.

In its four-count complaint, filed to the Commission in August, the Nevada Gaming Control Board (NGCB) accused CGT of allowing “unlawful interstate wagering on sporting events” and “the improper acceptance of sports wagers after the conclusion of events… [which] resulted in CGT incorrectly paying winning wagers”.

The NGCB also said that CGT had deployed a satellite sports betting station at an NFL American football Super Bowl party in February that was incorrectly configured for a “staging environment” – used for testing purposes – instead of a live “production environment”. Fourteen bets were processed at the station.

It is not the first time that CGT has fallen foul of the regulators since it was first granted a gaming licence by the commission in 2006 and began offering account-based wagering in 2011.

Just over two years ago, CGT agreed to pay $22.5m to resolve investigations into allegations of historic illegal gambling and money laundering in the US.

In January 2014, the company reached a $5.5m settlement with the NGCB over allegations that had been filed in a civil lawsuit regarding the actions of a former employee.

Referring to the latest points of complaint, the board said that CGT had “engaged in conduct that again directly and negatively damages the reputation of Nevada, the reputation of the gaming industry and the public’s confidence and trust that licensed gaming is conducted honestly”.

CGT said that it remains “committed to the Nevada sportsbook business and the long-term partnerships we have established.”