Penn National Gaming, which operates M Resort in Henderson, Nevada, has announced that William Hill US will run its sportsbook operation. It replaces CG Technology after ten years with the company.
Penn’s break with CG Technology came after CG settled a complaint with the Nevada Gaming Commission and paid $2 million in penalties. CG told CDC Gaming Reports that the contract was expiring and the two parties couldn’t reach an agreement for an extension.
CG issued this statement, “After 10 years at the M Resort our lease will end on April 30th. We will be fully operational until then. We would like to thank M Resort’s management team and employees for their support during our partnership.”
William Hill will take over in May. It provides similar sportsbook services to Penn in Mississippi, Pennsylvania and West Virginia. All are states that recently legalized sports betting. CG will continue to operate sportsbook for Penn at its Tropicana Las Vegas and several locations at the Las Vegas Strip, such as the Venetian-Palazzo.
Besides paying a fine to the state of Nevada, CG agreed to pay $16.5 million to the U.S. Department of Justice in 2016 over money laundering and illegal gambling charges. This also brought about a $5.5 million fine.
According to Brendan Bussman, of Global Market Advisors, some of CG sportsbook contracts may be hard for it to keep. He told the Las Vegas Review-Journal, “Looking at their remaining Nevada footprint, it could get worse before it gets better for CG,” adding, “There are plenty of opportunities for CG to be had in the U.S. They need to be engaged in every state that is currently looking at sports betting, including commercial and tribal properties.”
CG Technology recently announced a partnership with Meadowlands racetrack sports book in New Jersey.
