Tuesday, May 17, 2016 | 1:07 p.m.
CARSON CITY — The Nevada Gaming Control Board has filed a complaint against CG Technology, which runs seven Las Vegas-area sports books, for underpaying about $700,000 on more than 20,000 winning bets.
The complaint, filed Monday, also says about $100,000 was overpaid on more than 11,000 parlay wagers over a period of more than three years.
The complaint alleges CG Technology initially tried to block the state’s investigation into the incorrect payments.
The company conducts sports and horse racing betting at the M Resort, Hard Rock, Tropicana, Cosmopolitan, Silverton, Venetian and Palms.
Winners who complained they were underpaid were given their full payment. But the complaint says the books never tried to make good on the underpayments to thousands of bettors who did not complain.
The complaint seeks a $100,000 penalty for each of six counts in the complaint and disciplinary action against the company’s license. CG Technology has 30 days to answer the complaint.
The incorrect payments allegedly started in August 2011 and continued until March 2015, according to the complaint. The board said it was led to believe in May 2014 that the problem had been fixed.
But a bettor notified state regulators in March 2015 that he was underpaid on a winning round robin parlay bet at the Silverton, according to the complaint. He also said he was underpaid and then reimbursed on four previous bets, the complaint says.
A board investigation “revealed that incorrect payments on various winning parlay wagers had been a recurring and company-wide error for several years due to a software issue or software issues known to CGT,” the complaints says.
Only after the board began its investigation did the company take steps to identify all parlay wagers and patrons affected by the software issue, the complaint says.
On or about March 9, 2015, the company took steps to correct the problem.