Top Bookmaker Agrees To $16M Fine With FedsCG Technology Executive Engaged In Illegal Activity |
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One of the largest race and sports book operators in the United States has agreed to pay an eight-figure fine to the federal government over illegal gambling and money laundering.
The Department of Justice said Monday that CG Technology, formerly known as Cantor Gaming, has entered into a non-prosecution agreement and agreed to pay $16.5 million in penalties and forfeitures.
As part of the agreement, CG Technology will “provide continuing cooperation and has undertaken far-reaching reforms to its business and compliance operations,” the government said.
Michael Colbert, a former senior executive officer at the company, pleaded guilty in federal court to conspiring to participate in an illegal gambling business from 2009 to 2013.
He is facing up to five years in prison.
“Cantor Gaming quickly grew into one of the largest race and sports book operators in the United States," US prosecutor Robert Capers said. “Unacceptably, this growth came at the expense of compliance with the law, and as a result Cantor Gaming became a place where at least two large-scale illegal bookmakers could launder their ill-gotten proceeds.”
“The non-prosecution agreement recognizes Cantor Gaming’s decision to accept full responsibility, provide complete cooperation, and take remedial measures to enforce best industry practices going forward,” he added.
The need for federal sports betting reform was referenced in a statement by NYPD Commissioner James O’Neill, who said: “Illegal sports betting is a multi-million-dollar business often involving other illicit activity. There is good reason why this activity needs to be regulated and operated according to the law and industry standards. The illegal conduct forming the basis for this investigation was clearly motivated by greed and deliberate disregard for the rules of the gaming industry."
CG Technology does business in Las Vegas at the Venetian, the Palazzo, the M Resort Spa Casino, the Hard Rock Hotel and Casino, the Tropicana, the Cosmopolitan, the Palms Casino Resort, and the Silverton Casino Hotel.
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