Colbert Affair Expensive For Cantor Gaming (update)

$5.5 million fine for sports betting irregularities

In what is believed to be one of the heaviest fines yet imposed by the Nevada Gaming Control Board, CG Technology (formerly Cantor Gaming) will have to cough up $5.5 million to clear its slate on 18 gambling administrative and records irregularities it is accused of perpetrating by the regulator.

The irregularities filed by the NGCB investigators include a lack of oversight on employees by management, an apparent reference to the illegal "messenger bet" activities to which former senior exec Michael Colbert has admitted (see previous InfoPowa reports).

The settlement announced Monday will be the largest in state history and follows negotiations between the Board and CG Technology.

It will top the $5 million fine The Mirage paid to state regulators in 2003 for failing to file thousands of currency transaction records with the IRS.

NGCB investigators concluded that Cantor CEO Lee Amaitis "…either knew or should have known that Colbert was conducting the illegal activities described in the indictment."

The State newspaper reports that Cantor did not directly admit guilt to all the charges but acknowledged that regulators could have proved them all. The company said it has changed its internal practices in response to the sports betting scandal.

Cantor Gaming announced just hours before the NGCB complaint was made public on January 6, that it was re-branding to CG Technology.

Spokeswoman Hannah Sloane said the company was pleased to have put the episode behind it.

CG Technology is Nevada’s largest sports book operator and was the first company licensed by state regulators to manufacture and operate a mobile gambling system.

Online Casino News Courtesy of Infopowa

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