One of the most important race and sports book operators within the U.s. has agreed to pay an eight-figure fine to the government over illegal gambling and money laundering.

The Department of Justice said Monday that CG Technology, formerly referred to as Cantor Gaming, has entered right into a non-prosecution agreement and agreed to pay $16.5 million in penalties and forfeitures.

As a part of the agreement, CG Technology will “provide continuing cooperation and has undertaken far-reaching reforms to its business and compliance operations,” the federal government said.

Michael Colbert, a former senior executive officer on the company, pleaded guilty in federal court to conspiring to take part in an illegal gambling business from 2009 to 2013.

He is facing as much as five years in prison.

“Cantor Gaming quickly grew into probably the most largest race and sports book operators within the United States," US prosecutor Robert Capers said. “Unacceptably, this growth came on the expense of compliance with the law, and because of this Cantor Gaming became a spot where a minimum of two large-scale illegal bookmakers could launder their ill-gotten proceeds.”

“The non-prosecution agreement recognizes Cantor Gaming’s decision to just accept full responsibility, provide complete cooperation, and take remedial measures to enforce best industry practices going forward,” he added.

The need for federal sports betting reform was referenced in a press release by NYPD Commissioner James O’Neill, who said: “Illegal sports betting is a multi-million-dollar business often involving other illicit activity. There may be good the reason is, this activity must be regulated and operated in step with the law and industry standards. The ‎illegal conduct forming the foundation for this investigation was clearly motivated by greed and deliberate disregard for the foundations of the gaming industry."

CG Technology does business in Las Vegas on the Venetian, the Palazzo, the M Resort Spa Casino, the Hard Rock Hotel and Casino, the Tropicana, the Cosmopolitan, the Palms Casino Resort, and the Silverton Casino Hotel.

Read More... [Source: CardPlayer Poker News]