Nev. Commission eyes $5.5M fine for CG Technology

Jan 20, 2014 6:10 PM

The question facing the five members of the Nevada Gaming Commission is whether a $5.5 million fine, proposed by the Gaming Control Board and accepted by CG Technology, to settle an 18-count complaint, is sufficient punishment.

The tentative fine was announced last week following intensive negotiations over charges the company failed to properly supervise its sports betting operation that allowed the head of its risk management team to conduct illegal activities in conjunction with a New York sports betting ring.

Michael Colbert, the sports betting supervisor for what was then known as Cantor Gaming, has pleaded guilty to a felony charge of conspiracy and is awaiting sentencing. Gaming regulators say the company, and its CEO, Lee Amaitis, knew or should have known Colbert was involved in these illegal activities.

Prior to the settlement agreement, news reports indicated a fine of $2 million was anticipated. That was far smaller than the $5.5 million agreed to by the parties involved.

The previous record of a fine paid for by a Nevada gaming licensee took place in 2003 when the then MGM Mirage was fined $5 million when charged with failing to file some 15,000 reports of currency transactions.

Lax supervision was blamed just as lax supervision is being alleged regarding the illegal betting ring that has produced some 20 indictments in New York State.

Although CG Technology has agreed to the proposed settlement, the company was not charged with and has made no admission of any wrongdoing. Neither were any charges brought against Amaitis by the Control Board.

In a statement issued following the proposed settlement announcement the company said it was “glad we have reached a resolution and are pleased to put it behind us.”

The matter now goes before the Nevada Gaming Commission on Thursday, Jan. 23.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at [email protected].

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