Sports book operator fined $250,000 by Nevada regulators

A company that operates race and sports books in eight Las Vegas casinos is being fined $250,000 by the Nevada regulators for illegally accepting out of state bets, taking wagers after the contest was completed and underpaying or overpaying players.

CG Technology Holding signed a stipulation with the Nevada Gaming Control Board it also will discontinue its use of a sports pool computer system.

This is the third time the company has been fined for violations. It paid a $22.5 million fine to the U.S. government in October 2016 with the state receiving $700,000 of the amount. The state also imposed a $1.5 million penalty in 2006 for gaming violations

The instant complaint by the board said CG Technology agreed to tighten its computer system after it received a sports bet from Maryland. But the improvements were never installed, allowing sport wagers from Arizona, Texas and California. It said this violates federal, state and local laws.

The board said there were 33 wagers made in October 2016 after a college football game was completed. A week later it took nine wagers after a college football game was over.

In October, 2017, the business accepted wagers at the exact moment the odds were being changed. As a result, 783 players received $7,368 more than expected and 700 patrons got $4,465 less than expected.

There were other violations listed in the complaint prepared by Senior Deputy Attorney General Michael Somps. The stipulation says the fine is less than the previous penalties because the infractions were reported by the company, which has agreed to replace its Cantor Sports system. Those customers who have already placed bets will be paid based on the outcome.

CG Technology has also agreed to give increased training to its employees over the next five years.

The stipulation, which was released Wednesday, was signed by the three members of the gaming board and by Parikshat Khanna, the CEO of CG Technology Holding. The parent Gaming Commission must approve the agreement.