A.G. Burnett

CG Technology facing $1.5m fine and removal of CEO

A.G. Burnett
A.G. Burnett

CG Technology has agreed to pay a $1.5 million fine in relation to charges of underpaying and overpaying certain bettors on the sportsbook.

This comes just two months after the Nevada Gaming Control Board alleged that CG Technology had underpaid winning parlays by about $700,000 on more than 20,000 occasions from August 2011 to March 2015. The complaint also accused the company of overpaying winning parlays by about $100,000 on more than 11,000 occasions.

The settlement agreed to by CG Technology with the Gaming Control Board must be approved by the five-member Nevada Gaming Commission, and includes the resignation of President and CEO Lee Amaitis, effective from 31 August. The Commission will take up the matter at its 28 July meeting.

CG Technology, which operates race and sportsbooks at the M, Hard Rock, Tropicana, Cosmopolitan, Venetian, Palms and Silverton resorts, made multiple admissions in the settlement relating to incorrect payments because of ‘systematic problems’ on the computerised bookmaking system.

The company accepted that it did not ‘timely disclose’ the nature and scope of the issues, but denied that they had failed to cooperate with the board’s investigation, and that they had intended to profit from the computerised errors which resulted in the miscalculation of payments.

Nevada Gaming Control Board Chairman A.G. Burnett said: “The Board will not tolerate improper or incorrect payments to patrons by gaming licensees, and therefore takes this matter extremely seriously. This settlement contains several harsh punishments and requirements for remediation that reflect those concerns.”

However, the error which caused the problem has not resurfaced since March 2015, and Burnett has acknowledged that the company are taking the correct steps to pay bettors back. For example, they have agreed to put $25,000 in an escrow account to address any remaining underpayments.

Also, CG Technology has already paid out to underpaid players determined by its ‘forensic audit’ and agreed to retain one or more independent third parties to review its processes for a further year, ensuring compliancy with the Nevada Gaming Control Act.

Check Also

SBC launches Martin Lycka’s Safe Bet Show with Feldman interview

SBC has launched a new video podcast featuring Entain Plc’s Senior Vice President for American …

Martin Lycka: The importance of being liquid

Market-by-market, regulators face critical choices in how to govern the intricacies of managing product liquidity …

ESIC responds to ‘false narratives’ on its relationship with betting

The Esports Integrity Commission (ESIC) has declared that it carries no special interests for the …