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Cantor Gaming Settles Nevada Gambling Irregularities
Wednesday January 8,2014 : CANTOR GAMING SETTLES NEVADA GAMBLING IRREGULARITIES (Update)
And rebrands as CG Technology.
Several US mainstream publications, including the Wall Street Journal and the Las Vegas Sun, reported Tuesday that Cantor Gaming has tentatively reached a reportedly $2 million settlement with Nevada regulators on the sports betting irregularities that surfaced with the federal prosecution late 2012 and subsequent dismissal of senior Cantor exec Michael Colbert.
Our readers will recall that Colbert was one of 25 defendants faced with federal illegal gambling charges that also embroiled online sports book Pinnacle Sports.
On Monday, Cantor announced that it has rebranded as CG Technology, a move seen by some as an attempt to distance the firm from a situation in which the Nevada Gaming Control Board has just filed some 18 regulatory complaints against the company, ranging from weak employee oversight to inadequate records.
The Nevada Gaming Control Board launched an investigation in October 2012 following the indictment and subsequent guilty plea of Colbert, who was accused of conspiracy in operating an illegal sports gambling enterprise and now awaits sentencing after a court hearing last year.
The Board concluded that Cantor/CG senior execs should have been aware of the illegal "messenger bettor" activities involving a senior executive such as Colbert and should have taken action to end the illegal conduct.
It also notes that his arrest directly impacted Nevada's reputation for honest and competitive gambling free of corruptive elements.
The NGCB filing Monday recalls that three men served as messenger bettors for high-volume wagerer Gadoon Kyrollos, who employed the trio to place bets for him with CG Technology - then known as Cantor Gaming. One of the men has since pleaded guilty to money laundering and has forfeited $600,000.
The 35-page NGCB filing lists 18 irregularities at Cantor Gaming, including:
* Failure to keep in-running bet records for five years, and failing to keep records of wagering applications. It claims that some account applications had serious omissions such as social security numbers, contact numbers and personal details.
* Continuing to employ a staff member who had allowed her gaming employee registration to lapse.
* Failure to submit timeous hiring reports, and failing to list two supervisors as Key Employees.
* Failure to prevent two employees from placing wagers at M Resort's race and sports book.
On Monday CG Technology issued a press release saying that the company expects to finalise a monetary settlement with the NGCB in the near future.
The release read:
"CG Technology, formerly Cantor Gaming, has reached a tentative agreement with the Nevada Gaming Control Board for a monetary amount to be paid in full settlement of the regulatory complaint the Board filed today.
"Matters in the complaint stem from the illegal activity of a former employee, Michael Colbert, who pled guilty to federal charges following his arrest fifteen months ago.
"CG Technology expects to finalize this matter with the Board soon."
CG Technology spokeswoman Hannah Sloane said in the statement:
“The company conducted its own extensive internal analysis of Mr. Colbert’s actions and of the company’s systems, operations, and procedures, and has implemented additional industry-leading compliance processes.”
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