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C.G. TECHNOLOGY IN TROUBLE WITH THE NEVADA REGULATOR

C.G. TECHNOLOGY IN TROUBLE WITH THE NEVADA REGULATOR
 
Sports betting company agrees to pay 1 $1.5 million fine as veteran CEO Amaitis resigns.
 
The Las Vegas-based sportsbook operator CG Technology, which operates sportsbooks at the Cosmopolitan, Venetian, Palms and M Resort, has been fined $1.5 million in a settlement with the Nevada Gaming Control Board which includes the resignation of veteran CEO Lee Amaitis.
 
Reporting on the issue, ESPN records that the NGCB filed a complaint in May this year alleging CG Technology failed to fix "systemic problems" with the companys computerised bookmaking system, which resulted in "thousands of CGT patrons being incorrectly paid on winning wagers" from August 2011 to March 2015.
 
The complaint alleged CG Technology underpaid punters on parlays and round-robin bets by approximately $700,000.
 
The settlement notes that CGT has taken steps to make underpaid punters whole and has addressed the software error in its systems. The company denied that it "had any intent to profit from the errors that resulted in the miscalculated payments."
 
A number of conditions attach to the settlement, which requires CG Technology to:
 
* Set aside $25,000 in an escrow account to pay any remaining claims of underpayment that can be established during a six-month period. Any remaining portion of the $25,000 will be donated to the Nevada Council on Problem Gambling;
 
* Advertise the notice of inaccurate payments for two seven-day periods in a daily newspaper published in Clark County, Nevada;
 
* Engage an independent third party to oversee CG Technologys gaming software for a period of one year after the Nevada Gaming Commission accepts the settlement.
 
In a statement to the local Las Vegas Sun newspaper, NGCB chairman A.G. Burnett said:
 
"The Board will not tolerate improper or incorrect payments to patrons by gaming licensees, and therefore takes this matter extremely seriously. This settlement contains several harsh punishments and requirements for remediation that reflect those concerns."
 
Amaitis has resigned effective Aug. 31, 2016, according to the settlement. ESPN notes that Amaitis, a former executive with Cantor Fitzgerald, has been a controversial figure since arriving in Las Vegas in 2008.
 
He came under scrutiny after a vice president in charge of the sportsbook operations was indicted in 2012 and pleaded guilty to federal charges that he knowingly accepted wagers from an illegal sports betting ring that made an estimated $34 million in bets with then Cantor Gaming.
 
Back then, the company paid a $5.5 million fine and in 2014 embarked on a rebranding initiative, changing its title to CG Technology.
 
The company has yet to advise on who will replace Amaitis.

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Gambling News :

South Africa Going After Illegal Gambling - In South Africa a combined national police and federal enforcement initiative has shuttered 19 illegal gambling venues across the provinces of Northern Cape and North West.

The Winning Express arbitrage sports betting scheme - A UK-based GBP 27 million arbitrage sports betting scheme, The Winning Express, has collapsed, leaving a thousand investors with concerns that their money is lost, according to a BBC report over the weekend.

Global Poker League Championship Results - #gpl The inaugural season of the Global Poker League Championship played out this week with the Montreal Nationals besting the Berlin Bears across 11 games to claim the $100,000 main prize.

Yahoo DFS Gets Uk License - #yahoo Industry observers point out that Yahoo has thus far carried out little in the way of major marketing on DFS in its US endeavors, unlike rivals DraftKings and FanDuel, and they expect it to follow a similar path in the Britain.

SPANISH GAMBLING MARKET CONTINUES TO GROW - Spain's gambling industry continued to advance in 2015 with growth in most sectors, according to the latest research report from the Codere - University of Madrid Institute for Policy and Governance collaboration released this week.

Novomatic Acquires Albanian National Lottery - #Novomatic The Austrian gaming technology group Novomatic has issued a statement confirming that it has completed the final required steps for the successful acquisition of the Albanian National Lottery.

2016 Massachusetts Gaming Commission Report - Industry journalist Steve Ruddock picked up on some interesting statistics from the latest annual report of the Massachusetts Gaming Commission released this week, flagging the current results from its on-going monitoring research of the state gambling market.

Jack Lam denies bribe allegations - Allegations by Philippines Justice Secretary Vitaliano Aguirre that casino tycoon Jack Lam used 'facilitator' Wally Sombero in an attempt to bribe him into protecting Lam interests have been hotly denied by Lam.

Fonbet Gets Russian Betting License - #Fonbet Russian-licensed operators are required to use officially sanctioned payment hubs called TSUPIS to facilitate government oversight, and this may be a concern for Fonbet at present.

New Attempts to Restore the Wire act - In the first of these initiatives, which Online Poker Report notes is supported by only eight state AGs (half those who signed a similar letter last year), the signatories seek support for RAWA at a Congressional hearing scheduled for December 9.

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