On Monday, the Nevada Gaming Control Board filed a lawsuit against one of the state’s leading bookmakers, accusing the company of deliberate shortchanging its customers between 2011 and 2015. CG Technology Company was accused of underpaying roughly 700 thousand dollars while paying out over 20 thousand winning parlay bets during the period mentioned above. However, the lawsuit also contains information that the company overpaid approximately 100 thousand dollars for 11 thousand parlay bets.
In particular, it is stated in the lawsuit:
"Serious and significant failures have been found in the bookmaker of CG Technology. Actions of this company had a direct and negative impact on the Nevada's reputation, the reputation of the gambling industry, as well as the public opinion concerning the integrity of the operations in the gambling industry."
The regulator also states that CG Technology has started to do the required steps for identifying all wrongly paid bets only after the beginning of the investigation of the Nevada Gaming Control Board. The regulator became aware of this problem after receiving customers’ complaints.
Players who paid attention to the underpayment and complained of it fully received their payouts. However, they were angry by the fact that CG Technology "did not attempt" to pay those gamblers who did not notice that they were deceived.
Besides, the Nevada Gaming Control Board also noted that CG Technology knew how to solve the problem with payouts for parlays in 2012 but did nothing because of "financial considerations and business interests."
CG Technology provides sports betting activities at M Resort, Hard Rock, Tropicana, Cosmopolitan, Silverton, Venetian, and Palms. CG Technology controlled about 30% of the regulated betting market of Nevada in 2014.
The state claims for $100,000 penalties from the company for each of the six paragraphs of the lawsuit. As a result of the consideration of this lawsuit, CG Technology can lose its gambling license, taking into account the fact that in 2014 the company was warned about this. The company was forced to pay a $5,500,000 fine for one of its mangers who had contributed to the illegal sports betting activity. The company was warned that "any subsequent lawsuits may result in revocation of the license."
In the previous year, sports betting companies of Nevada accepted bets whose total amount reached $4.2 billion, which was the highest number for the whole history of the gambling industry in the Silver State. It was the first time when the total amount of bets exceeded $4 billion. Bookmakers of Nevada won 5.47% of these bets, and their revenues reached 231.8 million dollars. It was also the best result ever observed. Experts predict that the total amount of accepted bids will reach approximately five billion dollars this year.