For now at least, there will be one fewer independent betting line available in Nevada. UK based sports betting monolith William Hill has agreed to purchase the sportsbook assets of Las Vegas based CG Technology. CG Technology was formerly known as Cantor Gaming and for a time was considered among the most influential and innovative sportsbook operators in the Silver State. William Hill had already poached the sportsbook management at the M Resort in Las Vegas–the M Resort was at one point the center of Cantor Gaming’s operations. The sportsbooks involved in the deal are Cosmopolitan of Las Vegas, The Venetian, Palazzo, Palms, Tropicana and Silverton in the Las Vegas area along with betting platform and risk management consulting to the Atlantis on Paradise Island in the Bahama.
William Hill is the largest sportsbook operator in Nevada with 113 locations in the state. Definitely a good move from their perspective as it gives them a bigger presence on the Las Vegas Strip. The six former CG Technology books would make it 119 locations though I can’t imagine that the Palms will stay in the fold for long now that they’re under the ownership of Stations Casinos. The Cosmo, Venetian/Palazzo and Tropicana is a nice trifecta in itself and the highly underrated Silverton on the South end of town is just gravy.
Joe Asher, CEO of William Hill US, had this to say in the press release announcing the deal:
“We are pleased to have reached this agreement. This will allow us to expand our Las Vegas footprint to several marquee resorts. We look forward to working with our new casino partners and transitioning CG Technology’s retail and mobile customers to our award-winning offering.”
Parikshat Khanna, CEO of CG Technology, had this terse statement:
“We are happy to reach an agreement for the sale of the race and sports book assets of CG Technology to William Hill and look forward to a seamless transition for our loyal casino partners and customers.”
Terms of the deal were not announced. The deal is subject to regulatory approval in Nevada and the Bahamas. At least as far as Nevada is concerned I wouldn’t anticipate any problems given William Hill’s huge influence.
The big question that remains unanswered is what this means for the future viability of CG Technology as a company. It definitely doesn’t bode well for them to be unloading their Nevada sportsbook contracts. A Las Vegas Review Journal article about the deal had input from a gaming industry investment analyst who suggested that the deal could have been motivated by Cantor Gaming’s regulatory issues:
Brendan Bussmann, a partner at Global Market Advisors, said the arrangement gives insight into William Hill’s expansion strategy in the Nevada and Las Vegas market .
As for CG Technologies, Bussmann said the deal could have stemmed from the company’s regulatory issues. The Nevada Gaming Commission fined the company $8.8 million between 2014 and 2018 for three regulatory violations, including the second-highest fine ever assessed, $5.5 million in 2014., when the company was known as Cantor G&W
Those issues “continued to be out there as a potential liability,” Bussmann said. “People sometimes don’t forget things…even if you’re under new management.”
In theory, CG Technology could pivot into a technology provider for the burgeoning US sports betting industry. The problem is that they’re no longer pushing the ‘cutting edge’. At one point, they were massively innovative but they’ve been standing still while the worldwide gaming industry has surpassed them in terms of sports betting technology. The company’s regulatory issues in Nevada definitely wouldn’t help in their efforts to get licensed in other jurisdictions.
Look for further updates on this breaking news story at CASINO INSIDER. It’s behind a paywall, but I was interviewed by Bloomberg re: Cantor Gaming’s run in Nevada a while back: