Months after the Nevada Gaming Commission rejected a smaller agreement, CG Technology will offer to pay $2 million to settle major violations.
The commission will review the massive new offer at Thursday’s regular meeting in Las Vegas.
Attorney Todd Bice filed Thursday the settlement offer on behalf of CG Technology, which operates several sportsbooks in Las Vegas. The document does not indicate acceptance by the NGC, only that it will receive consideration.
The CG Technology financial proposal breaks down as follows:
- $1.75 million fine paid immediately
- $250,000 contribution to the Nevada Council on Problem Gaming within 60 days
CG also proposes creating a Corporate Social Responsibility Officer position and semi-annual “best practices” training of its C-suite executives.
CG Technology bumps up by 800 percent
The $2 million offer dwarfs the settlement unanimously turned back by the NGC. CG Technology negotiated in August a $250,000 deal with the Nevada Gaming Control Board, which the NGC oversees.
The self-reported violations that drew the commission’s ire include taking out-of-state mobile wagers, accepting bets after an event ended, and paying out both too much and too little on certain wagers.
Commissioners flatly rejected the deal in light of CG Technology’s major violations and fines in 2014 and 2016. CG paid a total of $7 million to settle the two previous cases.
License revocation still under consideration
Not only did commissioners scoff at the $250,000 agreement, but they also made clear they might shut down CG altogether. While this settlement proposal moves closer to the level of fine previously paid by CG, it guarantees nothing with the NGC.
“This isn’t a fine issue. This to me is a revocation issue,” Commissioner John Moran said. “I can’t think of a more egregious ongoing pattern of violation of the regulations and the statutes of the state of Nevada.
The bookmaker’s pattern of inability to comply with Nevada sports betting regulations caused the most trouble with commissioners.
“You’ve been called to the principal’s office three times,” said Commissioner Deborah Fuetsch. “When do we draw the line? When does this kid not get to come back to school?”
Some previous terms still apply
CG operates sportsbooks at The Cosmopolitan, Venetian, Tropicana, Palms, Silverton and Hard Rock in Las Vegas. The initial agreement required CG to give up its proprietary bookmaking technology within six months.
CG asserted at the August meeting that it planned to switch technology whether or not the settlement took effect. The new proposal would give CG three months to move to an “unaffiliated third-party sports pool wagering system.”
That part of the deal could stoke previous rumors of a possible sale of CG to another operator.
It certainly could be coincidence, but it is interesting that DraftKings Sportsbook continues to strengthen its Nevada sports betting presence right now.
The company last month hired longtime sportsbook executive Johnny Avello from Wynn. DraftKings Sportsbook also is advertising for jobs in a state where it has no partnerships or operations.
The post CG Makes Significantly Increased Settlement Offer To Keep Nevada Sports Betting License appeared first on Legal Sports Report.
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