Nevada regulators have wrapped up a five-year investigation into wrongdoing at sportsbook operator CG Technology by fining the company a third time as part of a settlement that requires CG to phase out its Cantor Sports Book platform and move to a third-party system.
In addition to a $250,000 penalty, the agreement reached with the Gaming Control Board states that all components that make up Cantor Sport Book have been “deemed permanently disapproved and will not be considered for future approval.”
Accordingly, CG has six months to adopt an “unaffiliated third party’s sports pool wagering system” at the seven Las Vegas casinos where it operates: The Venetian, Tropicana, Cosmopolitan, M Resort, Palms, Hard Rock and Silverton.
CG Technology, the sports betting affiliate branch of financial firm Cantor Fitzgerald, was the subject of a combined state-federal investigation into money laundering and other crimes launched in 2013 that included U.S. attorneys in New York and Nevada, the U.S. Postal Service, the Internal Revenue Service and the New York City Police Department.
Between 2014 and 2016, CG, then known as Cantor Gaming, was slapped with $22.5 million in federal fines and fines totaling $6 million in Nevada for a range of illegalities, including accepting multiple wagers on the company’s mobile betting application by customers outside Nevada, accepting bets on games and events that had already concluded, miscalculating payouts on single-game and round-robin parlay wagers, illegally making lay-off wagers at Nevada sportsbooks, and incorrectly setting up a satellite sports betting station at an undisclosed casino’s Super Bowl party.
