A Nevada sportsbook has been inaccurately paying patrons for five years, according to a complaint filed by Gaming Control on Monday.
The complaint alleges that sportsbook operator CG Technology failed to fix "systemic problems" with the company's computerized bookmaking system, which resulted in "thousands of CGT patrons being incorrectly paid on winning wagers" since 2011.
The inaccurate payments stemmed from a form of parlay wagers know as round robins. Customers were being both overpaid and underpaid. From August 2011 to March 9, 2015, winning parlays were underpaid on more than 20,000 separate occasions for a total of approximately $700,000 in underpayments, according to the compaint. Winning parlays were underpaid on more than 11,000 separate occasions for a total of approximately $100,000 in overpayments.
Penalties for the alleged violations range from a fine to the potential loss of CG Technology's gaming license. CG Technology, formerly Cantor Gaming, operates the sportsbooks at the M Resort, Venetian, Cosmopolitan and several other casinos in Las Vegas.
The complaint was submitted by Nevada Attorney General Adam Laxalt. CG Technology did not immediately respond to request for comment. The Nevada Attorney General's office referred a comment request to Gaming Control. Gaming Control did not immediately respond.
In 2014, CG Technology agreed to pay a record five of $5.5 million, after a vice president of risk, who oversaw the sportsbook, was indicted and charged for his role in an illegal betting ring. When the settlement was reached, CG Technology was cautioned that any future complaint could result in license revocation, according to the complaint. CG Technology began operating in Nevada in 2011.
In March 2015, Gaming Control responded to a complaint from a patron of the Silverton Casino Lodge who claimed to have been underpaid on a winning round-robin parlay. Gaming Control investigated and found incorrect payments on various winning parlay wagers had been a "recurring and company-wide error for several years, due to software issue or software issues known to CGT," according to the complaint.
The complaint claims that various CG Technology employees, including management, were aware or became aware that the computer bookmaking system was miscalculating winning parlays in 2011.
Some bettors who were shortchanged have received reimbursement checks.