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Sports book pays $16.5 million in penalties due to illegal gambling and money laundering schemes

Posted at 1:17 PM, Oct 03, 2016
and last updated 2016-10-03 16:19:18-04
CG Technology (formerly Cantor Gaming), one of the largest race and sports book operators in the United States, has agreed to pay $16.5 million in penalties and forfeiture to the federal government due to the company's involvement in illegal gambling and money laundering schemes.
Former senior executive officer at Cantor Gaming Michael Colbert previously pleaded guilty to conspiring to participate in an illegal gambling business. He faces up to five years in prison.
According to a press statement from the Department of Justice, Cantor Gaming offered preferential treatment to important bettors, including higher betting limits and direct access to Michael Colbert, whose job was to set the lines and odds for the betting contests.
To accommodate the important bettors, Colbert and his staff violated several state and federal laws by accepting and facilitating "messenger betting," accepting and facilitating out-of-state betting through wire communications, and processing large cash deposits knowing that the property involved represented the proceeds of some form of illegal activity.
As a result of the above violations, two important high-volume bettors ran illegal bookmaking operations and were able to launder their illegal proceeds through Cantor Gaming wagering accounts.
Cantor Gaming, an affiliate of Cantor Fitzgerald, operated race and sports books at The Venetian, The Palazzo, M Resort, Hard Rock, Tropicana, Cosmopolitan, Palms, and Silverton.
The Department of Justice says CG Technology is cooperating and has undertaken reforms to its business and compliance operations as a result of the resolution.