Does The Third Strike Mean CGT Is Out Of The Sports Betting Game?
Las Vegas sportsbook operator CG Technology face a big fine from the Nevada Gaming Control Board for the third time in less than two years. The most recent fine should run$250,000 and covers several illegal actions. CG Technology was caught accepting out-of-state wagers, taking bets on games after the games were complete, and underpaying and overpaying bettors.
A rundown of CGT sportsbook violations
The sportsbook operator was supposed to fix their computer system after someone placed a mobile sports bet from Maryland in 2016. They never fixed the glitch and there were 33 more illegal wagers placed from out of Nevada in October 2016 alone. The wagers were placed from Arizona, Texas, and California and in violation of federal and state laws. Additionally, CG Technology took nine wagers after a college football game was over in 2016.
The problems continued into 2017. CG Technology overpaid 783 bettors while they underpaid 700 bettors. This issue cropped up because of an odds change that occurr ed for a single game. You can see all of the complaints filed here.
According to Northern Nevada Business View, CG Technology will discontinue their use of a sports pool computer system at the request of the Nevada Gaming Control Board. Additionally, the sportsbook operator has agreed to offer better training for their employees.
CG Technology operates eight sportsbooks in Las Vegas, including The Venetian, Cosmopolitan, and Palms. The sportsbook operator also takes wagers via mobile app.
Previous fines for CG Technology
CG Technology was first fined in July 2016. The fine was for $1.5 million and their CEO, Lee Amaitis, resigned as a part of a settlement with the Nevada Gaming Control Board. This first fine was for for incorrectly paying wagers.
The second fine for CG Technology was much more serious and cost the company $22.5 million. CG Technology played a role in an illegal gambling and money laundering case. This was much larger than just a problem with paying wagers in Nevada. They had to pay the United States government as well as the states of New York and Nevada.
Third strike for CG Technology
In baseball, you’re out after three strikes. There have been plenty of rumors about CG Technology in recent years. Perhaps the loudest rumor was that CG Technology would sell all of their assets in 2017. Nothing has come of that rumor to date. However, it might be time to look at the potential of a sale of the Cantor Fitzgerald sports betting unit.
Sports wagering is expanding nationally. One of the companies Las Vegas partners could leave CG Technology out. Even though CG Technology operates the sportsbook in two Penn National Gaming casinos in Las Vegas (M Resort and Tropicana), the national casino operator chose to partner with another company outside of the state. Penn National instead partnered with William Hill in West Virginia and might look to expand that partnership to other states.
CG Technology is currently the third-largest sportsbook operator on the Vegas Strip behind MGM Resorts and Caesars Entertainment. The company currently operates sportsbooks at The Venetian, The Palazzo, Cosmopolitan, and Tropicana on the Vegas Strip. Their other sportsbooks are close to the Vegas Strip. An acquisition of CG Technology could provide a good point of entry for another operator looking to expand into Nevada.