Las Vegas Sun

March 28, 2024

Cantor says it’s reached settlement with Gaming Control Board on 18-count complaint

cantor ceo

Lee Amaitis, CEO of Cantor Gaming, is shown in the remodeled race and sports book in the Venetian on Nov. 1, 2011.

CG Technology says it has reached a tentative settlement with the Nevada Gaming Control Board over allegations the company, formerly known as Cantor Gaming, was lax in its oversight of employees and kept inadequate records.

News of the tentative settlement for an undisclosed amount was announced late this afternoon, after an 18-count regulatory complaint was filed by the board. The complaint landed just hours after Cantor officially announced its new name.

The board’s investigation began after the October 2012 indictment of a company executive accused of operating an illegal sports gambling enterprise.

Michael Colbert, former director of risk management and vice president of then-Cantor Gaming in Las Vegas, pleaded guilty in a New York federal court last year to one felony charge of conspiracy for his role in the nationwide illegal sports betting ring. His sentence is pending.

“The company conducted its own extensive internal analysis of Mr. Colbert’s actions and of the company’s systems, operations, and procedures, and has implemented additional industry-leading compliance processes,” CG Technology spokeswoman Hannah Sloane said in a statement.

In regard to the Colbert matter, the board determined that CG Technology officials should have known about the key employee’s illegal activities and taken steps to prevent them from happening.

Given Colbert’s position of authority, his arrest “directly impacts the state’s reputation in ensuring gaming is conducted honestly, competitively and free of criminal and corruptive elements,” the complaint states.

Three other alleged violations stemming from the illegal betting ring relate to CG Technology accepting wagers from “messenger bettors.”

Three men — Paul Sexton, Robert Drexler and Thomas Ludford — served as messenger bettors for high-volume wagerer Gadoon Kyrollos, who employed them to place bets for him with CG Technology, the complaint states.

The trio placed thousands of wagers for a combined total of more than $34 million. Sexton has since pleaded guilty to fourth-degree money laundering and has forfeited $600,000, according to the complaint.

The board contends CG Technology “may have known or reasonably should have known” about messenger bettors wagering on behalf of Kyrollos.

The other alleged violations in the 35-page complaint revolve around spotty record-keeping. The board found:

• CG Technology was not retaining recordings of in-running wagering events for the required five years.

• The company was not keeping appropriate records for wagering applications. When the board requested wagering applications for the top 100 accounts from CG Technology, the company could only produce those for 94 account holders. Those submitted also contained numerous problems, such as no Social Security numbers, telephone numbers or date of birth listed.

• CG Technology continued to employee a race and sports writer despite a six-month lapse in her gaming employee registration because it was not renewed on time.

• CG Technology did not submit on time hire reports from September 2012 through January 2013 to the board. The gaming company also did not list two sports book supervisors on its Key Employees Report submitted in July 2009 and July 2010.

• CG Technology failed to prevent employees from placing wagers at the M Resort’s race and sports book.

Board chairman A.G. Burnett signed the complaint for disciplinary action against CG Technology.

CG Technology officials said they expected to finalize the monetary settlement with the board soon, but an exact date was not given.

The gaming company has operated race and sports books at multiple Las Vegas casinos, such as the Hard Rock, Cosmopolitan, Tropicana, Venetian and Palms.

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