73°F
weather icon Clear

CG Technology executive wins recommendation for gaming license

Updated October 9, 2019 - 5:39 pm

The state Gaming Control Board on Wednesday unanimously recommended licensing an executive for a company that has been fined millions of dollars for violating Nevada gaming regulations over the past five years.

Board members encouraged Tullio Marchionne, chief compliance officer and deputy general counsel for Las Vegas-based CG Technology LLC, in his efforts to “rebrand” the company’s corporate compliance.

CGT, the operator of seven Southern Nevada sportsbooks, has paid three of the top 10 fine amounts assessed by the Nevada Gaming Commission, the most recent occurring in November.

Eleven months ago, commissioners fined CGT $2 million in a settlement after Control Board investigators determined that the company was taking wagers from outside the state, taking bets after events had concluded, made incorrect payouts to 1,483 bettors and misconfigured a satellite sports book betting station for the 2018 Super Bowl. The company admitted to all of the accusations and waived its right to a public hearing on the settlement.

Previously, CGT paid a fine of $5.5 million in 2014 when the company was known as Cantor G&W Holdings, and $1.5 million in 2016.

The company also was fined $12 million in 2016 for violations of anti-money laundering provisions of the Bank Secrecy Act by the U.S. Treasury’s Financial Crimes Enforcement Network.

The company was audited by FINCen and the Internal Revenue Service in the wake of the regulatory issues.

Final approval of licensing for Marchionne as a key executive and as an officer will be considered by the commission Oct. 24.

CGT, the first company to introduce a mobile gaming app in Nevada and one of the leaders in in-running wagering, currently operates the sportsbooks at The Venetian, Palazzo,The Cosmopolitan of Las Vegas, Hard Rock Hotel, Palms, Tropicana and Silverton.

It was the former operator at M Resort and in February, the company announced it was pursuing licensing for mobile gaming at the Meadowlands Racetrack.

Marchionne, a former executive vice president and general counsel for the Riviera, acknowledged that most of his compliance staff is new to CGT with the senior member of his five-member team coming aboard in May. He said some recent turnover within the company was attributed more to other opportunities coming along and not the abandonment of the company by employees as a result of its past.

“(For) the team that we brought on board right now in the compliance department, we are projecting a very positive image of compliance in general,” Marchionne told the board in a hearing in Carson City. “The people who are employed at CG Technology are certainly well aware of our past.”

Board members concurred that hiring new compliance officers could be the best thing for CGT.

“I do think sometimes that having a clean slate and being able to pick and develop your own team helps,” Chairwoman Sandra Morgan said prior to the vote. “I’m hopeful not only for you but for Nevada that you’re successful in your efforts to rebrand the cultural compliance of CGT.”

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

Don't miss the big stories. Like us on Facebook.
Business Videos
Binion's debuts a spinning bar overlooking Fremont Street Experience
Binion's debuted its spinning bar inside the Whiskey Licker Up Saloon. The Rotating bar only goes at one full rotation per 15 minutes overlooking the Fremont Street Experience. (James Schaeffer/Las Vegas Review-Journal)
Southern Nevada could set a new resale-price record in coming months.
The median sales price of previously owned single-family homes – the bulk of the market – was $310,000 in September. Before the economy crashed last decade, prices peaked in June 2006 at $315,000, according to the Greater Las Vegas Association of Realtors.(Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Walmart container park in Henderson - VIDEO
Henderson could be home to a container park associated with a Walmart Inc. initiative. (Las Vegas Review-Journal)
Recession lessons could help Las Vegas face next slump - VIDEO
While the last economic downturn had a dramatic impact on local casinos, most experts expect the industry will be better able to weather the storm during the next recession. (Mat Luschek / Las Vegas Review-Journal)
MGM and victims of Oct. 1 reach settlement agreement - VIDEO
MGM Resorts International and lawyers representing potentially thousands of victims of the Oct. 1, 2017, mass shooting on the Las Vegas Strip have reached a tentative settlement of between $735 million and $800 million. (Mat Luschek /Las Vegas Review-Journal)
Live music and EDM dominate the night on day 2 of A’Le’Innstock
After sunset bands rocked the crowds at A’Le’Innstock in Rachel, Nevada on the second night of the event.
iPhone 11 Release
Local Las Vegas long time Apple product consumer shares her excitement for the new iPhone 11 release Downtown Summerlin. (Elizabeth Page Brumley/Las Vegas Review-Journal)
Lihi Levin talks about a mobil app Dropit - VIDEO
Lihi Levin, regional manager at Dropit Shopping, talks about a mobil app Dropit. The app lets customers leave their shopping bags at a store then have them delivered the same day to their home or hotel so they can shop without carrying multiple bags all day. (Bizuayehu Tesfaye Las Vegas Review-Journal) @bizutesfaye
North Las Vegas company prepares for Mars - VIDEO
Robert Bigelow and his Bigelow Aerospace manufacturing facility played host to eight NASA astronauts and 60 engineers this week getting to know the company’s B330 autonomous, expandable space station. (Elizabeth Brumley/Las Vegas Review-Journal)
Las Vegas developer talks about a new apartment complex called “the yoU”
Frank Marretti lll, founder of G2 Capital Development, talks about his new apartment complex called “the yoU” near UNLV. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Steel cables will hoist roof at Allegiant Stadium - VIDEO
Stainless steel cables are being put into place at Allegiant Stadium to begin the process of putting the roof on the 65,000-seat stadium in Las Vegas. Stadium Chief Operating Officer Don Webb explains how the cables will be used to get the roof put on the future home of the Raiders and UNLV football. (Heidi Fang/Las Vegas Review-Journal)
The last remaining Sigma Derby game in Las Vegas
Derek Stevens, owner of the D Las Vegas, talks about the last remaining Sigma Derby horse racing game in Las Vegas inside his casino floor. (Erik Verduzco/Las Vegas Review-Journal)
Popeyes Spicy Chicken Sandwich Review
Janine Blake of Las Vegas gives her review of the new Popeyes Spicy Chicken Sandwich at the restaurant’s location on west Bonanza Road on Thursday, Aug. 22, 2019,
SuperZoo 2019 takes over Mandalay Bay in Las Vegas
SuperZoo 2019 show for pet retailers brought pet products of all description to the Mandalay Bay Convention Center in Las Vegas. (Heidi Knapp Rinella/Las Vegas Review-Journal)
MSG Sphere at The Venetian to cost $1.2B plus
Scheduled to open in 2021, it is expected to be busier than Madison Square Garden in New York. (Michael Quine/Las Vegas Review-Journal)
Favorite products from SuperZoo 2019
Some of the fun and interesting pet products on display at the SuperZoo in Las Vegas at the Mandalay Bay Convention Center. (L.E. Baskow/Las Vegas Review-Journal)
MAGIC Convention Day 3
The fashion trade show MAGIC, held Monday through Wednesday at the Las Vegas Convention Center. (Elizabeth Brumley/Las Vegas Review-Journal)
MAGIC Las Vegas - Day One
The biannual MAGIC convention show opened Monday at the Las Vegas Convention Center. (Elizabeth Brumley/Las Vegas Review-Journal)
Allegiant celebrates naming deal with tailgate party
Allegiant Air employees celebrate with a tailgate party after the company’s naming deal with the Raiders for the new Las Vegas stadium.
Nevada's sportsbook operators welcome competition
Sportsbook operators from near and far are looking to get into in the established Nevada market, experts say. (Las Vegas Review-Journal)
Get a first look of MSG Sphere construction in Las Vegas
Representatives of The Madison Square Garden Company give the first glimpse of progress Tuesday of the under-construction MSG Sphere — a first-of-its-kind performance venue with high-tech audio and visual capabilities.
THE LATEST