Cantor Gaming agrees to pay $5.5 million fine, marking Nevada’s largest settlement.
CG Technology, formerly called Cantor Gaming, has agreed to pay a $5.5 million fine to the Nevada Gaming Control Board, after the gambling authority discovered a former company director was involved in illegal sports betting.
Nevada was the first American state to legalize online sportsbooks in the US. Apparently, Cantor’s former director was part of a nationwide illegal gambling ring and took advantage of his position at the company to encourage unlawful sports betting.
Ex vice-president of race and sports risk management, Michael Colbert was accused of breaking American gambling laws by participating in a sports betting conspiracy. He pleaded guilty and was arrested in 2012, along with two dozen other people.
Record-keeping violations revealed
Nevada officials claim Cantor CEO Lee Amaitis “either knew or should have known that Colbert was conducting the illegal activities described in the indictment.”
The official complaint was 35 pages long and also included details about record-keeping violations. According the state’s gambling authority, Cantor failed to list all the names on a key employee report and to provide the hard copies of certain betting applications.
Following the scandal, the company changed its internal practices, as well as its name. This is the largest settlement in state history and the Nevada Gaming Commission is expected to approve it later this month.