A $2m Penalty Hits CG Technology in Nevada

CG Technology has managed to negotiate a deal with Nevada’s watchdogs, allowing the company to continue providing sports betting solutions for the state. The company was obliged to pay $2 million over a number of infringements accumulated over time.

CG Technology Out of the Frying Pan

For a while now, CG Technology has had a beef with state regulators in Nevada. The watchdogs have argued that the company has been systematically failing to meet certain aspects of its obligations as mandated by the license.

Given the operator’s history, Nevada initiated a penalty procedure whereby CG Technology had to pay a fine. The originally-proposed sum was $250,000, proposed by the operator itself, but Nevada turned that down and sought a rather heftier penalty instead.

The Nevada Gaming Commission also warned CG Technology that in light of its history, it may lose its license and not be able to offer its products in the state. Heeding the call of the regulator, the tech betting giant reconsidered and came up with $2 million.

CG Technology has been looking to boost its profits even more determinedly than some of the opponents. So much that it reportedly allowed inter-state gambling taking place, intentionally turning a blind eye. However, this move did not go unnoticed by the Nevada Gaming Commission, which sought help from the Nevada Gaming Control Board (NGCB).

In the course of the investigation, the NGCB also uncovered other infringements done by the company, such as briefly setting up a makeshift betting station back in February without seeking authorization first. Even though the recent history of the operator is fairly clean, the company has been embroiled in different infringements throughout the years.

A History of Misconduct

The previous hefty fine CG Tech has had to deal with was a payment to the tune of $22.5million when the company was found compliant with money-laundering practices and illegal gambling. The betting tech firm has run its illegal activities from 2009 to 2013, an investigation has revealed

The company did not go it alone, naturally. It was aided by an affiliate company known as Cantor Gaming. The investigation was brought to a meaningful and quick conclusion, with CG Tech ordered to pay on two separate counts, the total sum of which amounted to the aforementioned penalty.

Before that, CG Tech was also fined again back in January 2014, when the company was hit by another $5.5 million fine in the form of a settlement with the Nevada Gaming Commission Board. The case involved a former employee who has taken advantage of his position in the company at the expense of customers

The venal culture in CG Tech is something that the company vehemently denies, but a string of penalties, paired with the severity of the offense has made it difficult to defend the company’s position.

The NGCB is still happy to continue investigating and applying swift penalties without enacting more drastic measures such as revoking the license of the company. However, as CG Tech continues to damage the reputation of the state, a loss of the license is not entirely off the table.