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.