Little New on CG Technology Auction

It’s been nearly two weeks since news broke that CG Technology would be auctioned off to the highest bidder. The auction is scheduled to take place April 15. Whether the auction is actually going to take place is still a bit sketchy. It was first reported on Twitter on March 14. On March 15 Bloomberg ran an article stating the company could very well be solid.

If the auction reports are correct, the minimum asking price is $15 million. That’s a far cry from what Howard Lutnick paid for the company. A Bloomberg Markets Magazine article in 2012 said he put at least $150 million into the business. He also bought Las Vegas Sports Consultants, at the time, the premier oddsmakers in the industry. The first sportsbook CG Technology, which was previously called Cantor Gaming, opened was in 2009. Plans to take the company public have long disappeared and it appears that Lutnick is ready to sever ties.

CG Technology was the Las Vegas leader in live betting and accepted the largest wagers in town. That’s what eventually led to its downfall. According to the Justice Department, they took millions in illegal bets from a betting outfit known as the “Jersey Boys.”

They were fined $5.5 million by the Nevada Gaming Control Board and later settled with the federal government to the tune of $22.5 million. They were accused of underpaying winning tickets and settled that one as well for a $1.5 million fine. Former CEO Lee Amaitis was forced to resign as part of the agreement.

CG Technology runs sportsbooks in the Cosmopolitan,  Hard Rock, the Venetian and the Palazzo, among others.

Those expected to be interested in purchasing the company are Betfair, who also has had some legal troubles in the past. Another option could be William Hill, which is already well-established in the state with more than 100 sportsbooks.