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Sports Book Provider CG Technology Slapped with $250,000 Penalty and More

Playing by the rules is essential in the gaming field and for those who fail to abide by them, penalties are being issued. Such is the case involving one of the leading sports betting provider CG Technology and the Nevada Gaming Commission which mulls over charging the provider a considerable penalty amounting to some $250,000 in relation to as many as four breaches of the established set of rules.

This Thursday is set to be an important one for future operation of the sports book platform provider as a hearing on the matter would be hosted, striving to shed more light on the case. The violations have taken place over the span of the past two years and as it has been confirmed by the operator itself, they could be attributed to significant technical issues. It should be taken into account that the breaches range from permitting wagers to be placed following the end of a given game and giving green light for bettors from other states to utilize betting potential, to granting winners payouts different than the originally appointed ones, both less and more.

As many as 1,483 players have been affected by the latter wrongdoing. Back in April 2017 the company accepted wagers coming from other states such as California, Texas, and Arizona, which directly breaches the established rules of operation. What is essential for the operation is the fact that only residents of Nevada have the right to bet using the mobile app using data or wireless connection. The company provides leading locations across Las Vegas with sports betting potential to the likings of the M Resort Spa Casino, Hard Rock Hotel and Casino, Tropicana, Cosmopolitan of Las Vegas, The Venetian, Palazzo, Palms, and Silverton.

Mobile apps for sports wagering are also available providing players with an alternative to the already existing and operating Miomni and William Hill which oversee part of the field. It is also considered that the younger generation of players is more drawn to mobile offerings and an easily-accessible gaming. As a punishment for the illegal activities occurring over the span of the said period of time, the provider faces license revoking, but for the time being no such harsh measures have been considered by the Nevada Gaming Commission.

CG Technology Faces Third Penalty for Past 4 Years

An arrangement could be discussed and approved which would see the provider scrapping its platform, as it has proven to be inefficient in the long run. Instead of it, a new one would have to be introduced which would have to be provided by a third party company, in order to ensure that future operation goes smoothly and without such hiccups. The time frame for this change would amount to half a year.

In addition to this settlement, a fine amounting to $250,000 would have to be paid by CG Technology. This is considered a fair solution provided that the arrangement is followed strictly by all parties involved since SG would not lose its permit for operation. In the past, these glitches have been reported as they have been experienced by the players. They ranged to the liking of difficulties when they make an attempt to log out of the system to issues with transferring money, proving to reportedly come with more hassle than necessary.

However, it will not be the first time when such a scolding has been taken place in relation to the sports book platform provider, as there have been two previous occasions where fines have been issued. Back in 2014, the company was slapped with a $5.5-million penalty since illicit sports betting operation turned out to be overseen by one of CG Technology key executives. This proved to be among the highest fines ever issued in the gambling field of Nevada.

A couple of years after that a new fine was demanded, this time reaching $1.5 million, as once again players had been paid less than they were supposed to receive. Shortly after this second disciplining action against the company, then-President and Chief Executive Officer Lee Amaitis opted for filing his resignation and exiting the company’s structure. The state regulator overseeing the field is among the most prominent across the states and maintaining an utmost level of security measures is vital for it.

 Author: Hannah Wallace

Hannah Wallace has been part of our team since the website was launched. She has a master’s degree in IT.