Nevada Gaming Commission at odds with control board over CGT punishment

A $250,000 punitive settlement for contravening Nevada gambling regulations negotiated between sports betting operator CGT (formerly Cantor Gaming) and the Nevada Gaming Control Board was unanimously rejected Thursday by the Nevada Gaming Commission.

Commissioner John Moran told the Las Vegas Review-Journal that the Commission felt that a fine was inappropriate, saying “This isn’t a fine issue. It is a revocation issue. I can’t think of a more egregious ongoing pattern of violations.”

CGT has been hauled before the Nevada regulator on a number of occasions in recent years, and has previously been successful in sustaining only stiff monetary penalties for breaking Nevada gambling regulations

The company has also been in hot water with federal authorities, in one memorable case agreeing to pay a $22.5 million penalty in respect of illegal gambling and money laundering in a messenger betting issue (see previous reports).

Commission chair Tony Alamo said that he could not agree with the NGCB settlement, and suggested that CGT should pay at least $1.5 million in penalties, if not a multiple of that amount.

The NGCB had pointed out that the current infractions came to light following self-reporting by CGT, but the Commissioners observed that a quarter million dollars would not even cover the cost of the investigation into CGT.

There will now be a 30-day standstill period in which CGT will be allowed to further argue its case. The company also faces a software replacement problem following the Board’s decision to permanently withdraw its approval for the product. CGT has six months to get that done and find a more acceptable sports betting platform approved by the Nevada regulator.

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