Nevada gaming regulators accept CG Technology’s $2 million offer to settle disciplinary action Howard Stutz, CDC Gaming Reports · November 16, 2018 at 12:05 am In August, sports book operator CG Technology was close to losing its Nevada gaming license. On Thursday, state gaming regulators praised the company for coming up with a $2 million solution to end a lingering disciplinary action – the third such complaint against the company in the past five years. CG Technology – a subsidiary of the Cantor Fitzgerald investment house – offered the settlement after the gaming commission in August took the unusual step and unanimously rejected a stipulated settlement of $250,000 that was negotiated with the Gaming Control Board. Commissioners said at the time the fine was “too low” and the third discipline charge could result in a license revocation. “I appreciate what they first started. It was a good start. Today, it’s a better finish,” Gaming Commission Chairman Tony Alamo Jr said of the control board’s initial negotiations with the company. “The is an example of why the system we have works.” The fine – $1.75 million to settle a four-count complaint and a separate $250,000 payment to the Nevada Council on Problem Gambling – marked the third time CG Technology (formerly Cantor Gaming) paid a multi-million-dollar figure. The company was fined $5.5 million in 2014 and $1.5 million in 2016, which led to the ouster of company CEO Lee Amaitis. Senior Deputy Attorney General Michael Somps told the commission the Gaming Control Board did not oppose the settlement offer. The control board and CG Technology turned over to the commission various documents associated with the investigation that were used in considering the initial settlement and were deemed confidential. Gaming Commission members unanimously supported the resolution. “What you brought us today is change,” said Commissioner Deborah Fuetsch. “I hope and pray we don’t see you back here again.” CG Technology accepted multiple wagers on the company’s mobile betting application placed by customers outside Nevada – including from Maryland, Texas, Arizona and California; accepted 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. The company self-reported the violations to the Gaming Control Board. In addition to the amount of the fine and the payment to the problem gambling council, CG Technology agreed to transition to a new operating system in three months. The company will also establish a Corporate Social Responsibility Officer who will report director to the CEO, to “enhance” its “meaningful” contributions to the Nevada gaming community and employee training. “This is a position I fully support,” CG Technology CEO Parikshat Khanna told the commission. In a statement following the hearing, Khanna said the company was “satisfied with the resolution” reached with the commission. “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,” Khanna said. “Additionally, we look forward to the growth prospects of the industry nationwide.” Khanna, an employee of CG Technology since 2010, became interim CEO following the departure of Amaitis and permanent CEO a year later. CG Technology operates sportsbooks at seven Las Vegas Strip and Las Vegas-area casinos: Venetian-Palazzo, Tropicana, Cosmopolitan of Las Vegas, M Resort, Palms, Hard Rock and Silverton. Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at firstname.lastname@example.org. Follow @howardstutz on Twitter.