Major Vegas Bookmaker Accused Of Underpaying On Winning Bets For YearsCG Technology Could Lose Its License, Regulators Say |
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The Nevada Gaming Control Board on Monday filed a complaint against one of the state’s leading bookmakers, alleging that the company shortchanged gamblers between 2011 and 2015—and knew it was happening.
CG Technology is accused underpaying about $700,000 on more than 20,000 winning parlay bets during the period. The complaint also says that it overpaid $100,000 on 11,000 parlays.
Nevada gaming regulators said CG Technology had “serious and significant failures” in its bookmaking system. The company’s “conduct…directly and negatively damages the reputation of Nevada, the reputation of the gaming industry, and the public’s confidence that gaming is conducted honestly,” the complaint said.
Regulators allege that CG Technology only began “to take the necessary steps to identify all incorrectly paid wagers” after the Gaming Control Board started to investigate. Regulators became aware of the issue after customers alerted them.
Gamblers who noticed the underpayment and complained were paid in full, but CG Technology allegedly “made no attempt” to pay gamblers who didn’t notice they were shortchanged.
Additionally, the Board said that CG Technology knew how to correct the issue with parlay payouts in 2012, but it didn’t do so for “business and/or financial purposes.”
CG Technology runs sports betting at M Resort, Hard Rock, Tropicana, Cosmopolitan, Silverton, Venetian and Palms. Back in 2014, CG Technology controlled roughly 30 percent of Nevada’s regulated sports betting market.
Nevada is seeking a $100,000 penalty for each of the six counts in the complaint, as well as possible disciplinary action against CG Technology’s gaming license.
According to the complaint, CG Technology could stand to lose its license because regulators warned in 2014, after the company paid a $5.5 million fine for one of its then executives facilitating illegal bets, that “any future complaints could result in license revocation.”
Last year, Nevada sports books took $4.2 billion in bets, an all-time high for the Silver State casino industry. It was the first time ever that the handle surpassed $4 billion. Nevada sports books won 5.47 percent of those wagers. The $231.8 million in revenue was also the best ever for the sports books.
The Silver State’s sports betting handle is expected to approach $5 billion this year.
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