Cantor to pay $5.5M fine for illegal betting

LAS VEGAS (AP) - CG Technology, formerly Cantor Gaming, has agreed to pay Nevada gambling regulators $5.5 million to settle a complaint regarding illegal sports betting.

The settlement announced Monday will be the largest in state history.

Earlier this month, the Nevada Gaming Control Board filed an 18-count complaint against the company. Regulators said Cantor failed to adequately supervise its former sports book director, who was involved in a nationwide illegal sports betting ring.

Michael Colbert, formerly vice president of race and sports risk management, was arrested in 2012 and pleaded guilty to participating in a sports betting conspiracy. Two dozen other people in Las Vegas and New York were also charged in the ring.

Regulators said the company’s lack of supervision over Colbert, considered one of sports betting’s most respected fixtures before his arrest, violated state gambling rules.

The complaint alleges that CEO Lee Amaitis “either knew or should have known that Colbert was conducting the illegal activities described in the indictment.”

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.

CG Technology announced Jan. 6, hours before the complaint was made public, that it was changing its name from Cantor Gaming. Spokeswoman Hannah Sloane said the company was pleased to have put the episode behind it.

The 35-page complaint also detailed several record-keeping violations, including failing to list everyone required on a key employee report, and failing to provide the hard copies of some wagering applications.

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. The company provides gambling technology to Celebrity Cruises and also has interested in China and the Bahamas.

The settlement is expected to be approved later this month at a meeting of the Nevada Gaming Commission.

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.

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Hannah Dreier can be reached at http://twitter.com/hannahdreier .

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