Facing an 18-count complaint of failing to adhere to Nevada gaming regulations, CG Technology, formerly known as Cantor Gaming, the gaming affiliate of Wall Street powerhouse Cantor Fitzgerald, reportedly has agreed to pay something in excess of $2 million to settle the charges.
The fact that a tentative agreement had been reached was made known by officials of the Nevada Gaming Control Board.
The amount of the proposed fine, which officials emphasized was only tentative, was reported by the Wall Street Journal. The newspaper cited “people familiar with the matter” as the source of the financial agreement.
Still to be heard from is the Nevada Gaming Commission, which must approve any settlement before it can be implemented.
The 18-count complaint became public in a detailed report identifying 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.
In the report, the gaming regulators noted the arrest in 2012 and subsequent guilty plea to a felony charge made by Michael Colbert, who was Cantor’s vice president of race and sports risk management. The Board said the company or CEO Lee Amaitis, either knew or should have known of Colbert’s activities.
However, there were no allegations made against Amaitis relative to being involved in illegal actions. Later, Amaitis, through a spokesman, denied doing anything illegal.
Gaming Board investigators wrote in the report that the Cantor scandal, “directly impacts the state’s reputation in ensuring gaming is conducted honestly, competitively and free of criminal and corruptive elements.”
Following the announcement of a tentative settlement, CG Technology spokesperson Hannah Sloane issued a statement indicating the company had improved its internal checks and balances in the wake of Colbert’s departure.
In addition to Colbert’s felony pleas, the report identified a number of individuals who allegedly acted as “runners” in placing bets for others and also of several instances when employees were writing or cashing tickets for themselves.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at [email protected].