Nevada Gaming Commission accepts $2m CG Technology settlement
Sportsbook operator agrees eightfold increase in fine to retain licence
The Nevada Gaming Commission (NGC) has agreed to accept a $2m settlement from sports betting operator CG Technology as reparation for its alleged regulatory violations.
The settlement will allow CG to retain its sports betting licence, pending the operator moving to an new platform provider within three months.
This penalty package will include a $1.8m fine together with a $250,000 contribution to the Nevada Council on Problem Gaming.
CG Technology CEO Parikshat Khanna said the company was “satisfied” with the resolution of the regulatory issues.
Khanna added: “We remain committed to the Nevada sports book 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.”
It comes after the NGC unanimously voted to reject an initial $250,000 settlement offer made by CG Technology in August, after news of the regulatory infringements was made public.
The violations initially were concerning the company’s Cantor sports book (CSB) mobile betting software, which allowed several out-of-state wagers during 2016 and 2017.
At the time of the infractions CG Technology said it would introduce new software patches to the geolocation software being used on its mobile betting app, updates which were never introduced.
Because of these lapses, a further 33 more illegal wagers were placed.
At the end of the three-month period, the Cantor sports book technology and any other in-house sports book software will be “deemed permanently disapproved and the system or its derivatives will not be considered for future approval.”