CG Technology in More Hot Water After Underpaying Bettors on Round Robins

Since changing their name to CG Technology from Cantor Gaming two years ago, the Las Vegas-based sportsbook operator had been on the up and up, staying out of trouble after being issued a record $5.5 million settlement in an 18-count illegal sports betting case from 2012.

But CG Technology is back in the news again for the wrong reasons following a six-count complaint issued by the Nevada Gaming Control Board regarding incorrect payments to customers made on winning round-robin parlay wagers. CG Technology currently runs Vegas sportsbooks at the Cosmopolitan, Venetian, Palazzo, Palms, Hard Rock Hotel & Casino, Tropicana, M Resort and Silverton.

The complaint documents approximately 20,000 wagers that were underpaid by more than $700,000, which could result in CG Technology losing its gaming license in the state of Nevada. The company also reportedly overpaid an estimated 11,000 wagers for a total of $100,000 due to known computer software issues that had been going on over the course of several years, according to the Las Vegas Review-Journal.

The 2012 case that was finally resolved in 2014 put CG Technology on warning status with the Gaming Commission after former executive Michael Colbert was one of eight Vegas residents originally charged with illegal bookmaking and money laundering in a New York police investigation. Colbert ended up pleading guilty to one felony charge of conspiracy in New York nearly one year following his initial arrest on October 24, 2012.

Colbert had risen to fame around town while serving as sportsbook director at the M Resort, Cantor’s first property in 2009, where he had offered the highest betting limits in Vegas along with an expanded wagering menu that few other books could compete with. The M was also the first to give bettors the opportunity to try in-running wagering, or live betting as it is known today. He made frequent media appearances to promote his book and later took on a larger role with the company.

But Colbert allowed a New York-based illegal sports gambling operation known as the “Jersey Boys” to place bets at Cantor properties through the use of runners, also known as messenger bettors. Three runners made nearly 7,000 bets for more than $34 million before getting busted. Paul Sexton was named as the biggest runner in the complaint with 4,464 bets for $22 million between 2011 and 2012, and he later pleaded guilty to fourth-degree money laundering while being forced to forfeit $600,000. Gadoon Kyrollos was also named as the high-volume bettor using runners to place wagers on his behalf.

Kyrollos was one of 25 individuals indicted by the FBI in a multi-million dollar illegal sports betting ring in New York in late October of 2012. The ring operated over five states – including California, Nevada, New York, New Jersey, and Pennsylvania – and made more than $50 million over an 18-month period by accepting wagers on different sporting events, ranging from horse racing to college and professional sports.

Kyrollos was charged with enterprise corruption, fourth-, third-, second- and first-degree money laundering, first-degree promoting gambling, and fourth- and fifth-degree conspiracy.