A $250,000 Fine Awarded
The Board has ordered a $250,000 fine on the operator. The firm has also been ordered to cease using its own equipment and technology. It will be allowed to stay in business so long as it uses third-party equipment and tech to facilitate gambling in its casinos. In addition to this, CG Technology will also discontinue the use of its sports pool wagering system and all of its components. The ban will be permanent in nature and should be carried out within six months.
The company first allowed a Maryland gambler to use its mobile wagering system to place a bet. It later claimed to make adequate changes to its software as well as Geo-location functionality. However, in April 2017, it allowed more such bets from California, Arizona, and Texas. The complaint to the Board stated, “CGT’s conduct […] constitutes a failure to comply with or make provision for compliance with all federal, state and local laws and regulations.”
In May this year, the Supreme Court of the US allowed all states to legalize and regulate sports betting in their respective jurisdictions. Before the ruling came to force, single-game sports gambling was legal only in Nevada. This made some players place bets on the Nevada sports book operators.
The complaint further stated that CGT engaged in a definitive pattern of allowing sports bets on events that had already been concluded. According to the complaint, the operator accepted sports bets during and after the matches were finished back in 2016. It included bets in boxing as well as MMA matches. Later in the year, the operator accepted over three dozen bets during college football games of October even after the games were finished.
CGT has previously had some run-ins with the Board. The firm was previously accused of shortchanging some gamblers between 2011 and 2015 which led to $70,000 in underpayments.