Nevada gaming regulators OK $1.5M settlement with CG Technology
CARSON CITY — Nevada gaming regulators on Thursday approved a $1.5 million settlement with sports book operator CG Technology to resolve a complaint about underpayments on its computerized betting system.
CG Technology president and CEO Lee Amaitis also is being forced to resign, effective Aug. 31, under terms of the settlement.
A $25,000 escrow account to pay bettors who were shorted in the calculation of player winnings will also be created.
Gaming Commission Chairman Tony Alamo said that when the issue first came to light, he thought a license revocation was the only viable option for the company.
But Alamo said he decided to support the settlement, calling it a “reboot” because of the corporate change mandated as well.
“This company needs a culture change, there is no doubt about it,” he said.
Attorney Mark Clayton, representing the company, said nearly all underpaid bettors have been made whole, with about $599,000 in restitution.
CG Technology is a sports book manager at seven Las Vegas casinos.
CG Technology, formerly Cantor Sports Book, was accused in a Control Board complaint in May of underpaying bettors by more than $700,000 on an estimated 20,000 wagers.
CG admitted the company’s software miscalculated payouts, and that they failed to notify patrons and the board of the miscalculations in a timely manner, but they denied not cooperating in the Control Board’s investigation, admitting there was sufficient evidence to warrant a settlement.
CG Technology also overpaid about 11,000 bets a total of $100,000 because of a computer software glitch that the company didn’t fix for years. The company never notified gamblers of the problem in paying out some parlays.
The company began operating a computerized bookmaking system known as Cantor Sports Book for its mobile sports wagering in August 2011, the complaint said, and the company miscalculated winning parlay bets for several years.
CG Technology manages race and sports books at the M Resort, the Hard Rock Hotel, Tropicana, The Cosmopolitan of Las Vegas, The Venetian, the Palms and the Silverton. The casinos lease space to CG Technology and have management agreements to split profits but are not subject to disciplinary action.
The Review-Journal is owned by the family of Sheldon Adelson, chairman and CEO of Las Vegas Sands Corp., which operates The Venetian.
Contact Sean Whaley at swhaley@reviewjournal.com or 775-461-3820. Find him on Twitter: @seanw801