Software glitch costs CG Technology its CEO and $1.5m

Software glitch costs CG Technology its CEO and $1.5m

Friday, July 22, 2016 Posted by Andy McCarron
President and CEO Lee Amaitis is resigning from CG Technology

The controversy over Las Vegas sports betting customers being undercut in their winnings payments looks set to cost CG Technology president and CEO Lee Amaitis his job.

The Nevada Gaming Control Board has also told CG that it needs to pay a fine of US$1.5m to the charges of underpaying and overpaying certain bettors on the sportsbook, as well as adding a stipulation for setting up an escrow account to pay those out of pocket.

The agreement, which needs to be formerly accepted next week by the Nevada Gaming Commission, makes clear that Amaitis, the president and CEO of the company, has resigned and that his interim replacement needs to file a licence application within a month.

CG Technology, formerly Cantor Sports Book, was accused by the Nevada Gaming Control Board last May of underpaying bettors by more than $700,000 on an estimated 20,000 wagers. The company has admitted that its software miscalculated payouts, and that it failed to notify patrons and the regulator of the miscalculations in a timely manner. CG supplied sports betting technology to seven Las Vegas casinos  the Hard Rock Hotel, Tropicana, The Venetian, the Palms, M Resort, the Silverton and the Cosmopolitan of Las Vegas. 

Control Board Chairman A.G. Burnett said: “Public confidence and trust can only be maintained by strict gaming regulation. The board will not tolerate improper or incorrect payments to patrons by gaming licensees, and therefore takes this matter extremely seriously. This settlement contains several harsh punishments and requirements for remediation that reflect those concerns.”

The stipulation also orders that CG hires an independent third party to evaluate the company’s wagering software for a year.

The company’s software regularly miscalculated winnings for single and round robin bets, although not for any material gain for the company as it also overpaid about 11,000 bets to a total of $100,000.

Totally Gaming Says: Lee Amaitis has been recognised as doing a sterling job building up parent company Cantor Fitzgerald after its workforce was decimated in the 9/11 attacks on the World Trade Centre, but the group’s sportsbook software has forced his retirement from the firm. Two years ago the Cantor Sports Book computerised bookmaking system was deemed faulty by the Nevada regulators, which warned that the company could lose its licence for further breaches. Instead it has lost its CEO.

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