Sportsbook provider CG Technology (CGT) is staying in business after all.
The Nevada Gaming Commission (NGC) announced on Thursday that it has already approved a $1.5 million settlement with the troubled sportsbook company that was caught ignoring software glitches that underpaid bettors around $700,000.
If you recall, the Nevada Gaming Control Board (NGCB) filed a formal complaint against CGT in May, in which it accused the company of failing to fix a glitch in its Cantor Sports Book software that both underpaid and overpaid parlay bettors, and attempting to interfere with the board’s investigation.
Opting to settle, CGT agreed to pay a fine of $1.5 million and also oust CEO Lee Amaitis effective Aug. 31, 2016. And this, according to the commission, made all the difference.
Gaming commissioners said they were all ready to revoke the company’s gambling license, but Amaitis’s impending removal “made the settlement easier to accept,” Associated Press reported.
NGC Chairman Tony Alamo called the settlement a “reboot” that would pave the way for a corporate change.
“This company needs a culture change, there is no doubt about it,” Alamo said.
As part of the settlement, CGT will place $25,000 into escrow to pay claims of bettors who can prove they were underpaid by CGT between August 2011 and August 2015. NGCB claimed the sportsbook provider miscalculated around 200,000 wagers over that period, underpaying a total of $700,000 while overpaying around $100,000.
CGT lawyer Mark Clayton was quoted by the Las Vegas Review Journal saying that “nearly all underpaid bettors have been made whole, with about $599,000 in restitution.”
This isn’t the first time that CGT, formerly known as Cantor Sports Book, had to settle with state regulators to remain in business.
In 2014, the sportsbook manager agreed to pay $5.5 million over allegations that it failed to track the illegal wheelings and dealings of an ex-sportsbook executive. Michael Colbert, former vice president of race and sports risk management, was arrested in 2012 and later pleaded guilty to accepting thousands of dollars in illegal messenger bets.