Nevada’s Gaming Control Board will not object to the $1.75 million fine sports book operator CG Technology has offered to settle a lingering disciplinary action, according to documents filed Wednesday.
The Nevada Gaming Commission is expected to consider the proposed settlement during a hearing Thursday in Las Vegas, which would end a four-count complaint filed earlier this year by the Control Board.
The settlement also includes a separate $250,000 payment to the Nevada Council on Problem Gambling.
In a brief filing, Senior Deputy Attorney General Michael Somps, representing the three board members, wrote the board “does not oppose” the proposed settlement offered by CG Technology.
In a separate filing, also signed by Somps, CG Technology outside attorney Todd Bice and Gaming Commission Chairman Tony Alamo Jr., the Control Board and CG said various documents associated with the investigation were turned over to the commission for consideration in the settlement and could be deemed confidential.
Gaming Control Board Chairwoman Becky Harris told CDC Gaming Reports Saturday the board “did not engage in settlement negotiations” with CG Technology, based on language in the gaming regulation covering disciplinary hearings.
“The board agreed not to affirmatively object to the offer,” Harris said.
CG Technology agreed to a pay a $250,000 fine in a stipulated settlement with Control Board in August to settle the four-count complaint, but the five-member Gaming Commission took an unusual step and unanimously rejected the agreement.
Commissioners said during an hour-long hearing in Las Vegas the fine amount agreed upon with the three Control Board members was “too low” and the four-count complaint – the third such disciplinary action against the company in five years – amounted to a potential license “revocation.”
In a filing with the Gaming Commission posted to the agency’s website last week, Bice wrote the “proposed order has been submitted to the board and the board does not reject to the form of the order or the resolution.”
CG Technology operates sportsbooks at seven Las Vegas Strip and Las Vegas-area casinos. The company has been the subject of multiple discipline complaints by gaming regulators. CG Technology paid multi-million-dollar fines for previous actions of $5.5 million in 2014 and $1.5 million in 2016, which led to the ouster of the company’s CEO.
In the latest complaint, CG Technology was accused of accepting multiple wagers on the company’s mobile betting application placed by customers outside Nevada – including from Maryland, Texas, Arizona and California; accepting bets on games and events that had already concluded, miscalculating payouts on single game and round robin parlay wagers, and incorrectly setting up a satellite sports betting station at an undisclosed casino’s Super Bowl party.
CG Technology operates the sportsbooks at the Venetian, Tropicana, Cosmopolitan of Las Vegas, M Resort, Palms, Hard Rock and Silverton.
In addition to the amount of the fine and the payment to the problem gambling council the only other change in the proposed settlement from the original document was CG Technology agreeing to transition to a new operating system in three months.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
