Red Rock App ‘Stadium Live’ in License Revocation Threat Over Improper Sports Bets

Posted on: September 23, 2021, 03:57h. 

Last updated on: September 24, 2021, 09:59h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.

Red Rock Resorts is in hot water with Nevada regulators for accepting hundreds of sports bets after the events had finished.

red rock
Red Rock Resorts’ Red Rock Casino in Las Vegas. The company is facing disciplinary action for transgressions linked to its Nevada mobile sports betting app. (Image: Financial Times)

In a complaint filed last week, the Nevada Gaming Control Board said a glitch in the company’s Stadium Live mobile betting program caused it to accept 348 improper wagers. It accuses Station Casinos and parent Red Rock of having a “redundant monitoring process” in place.

According to the regulator, the transgressions were related to insufficient server memory on the Stadium Live platform.

The bad bets occurred over a period of three years, from June 2018 onward, and continued after the board served the company with a regulation violation letter in March 2019.

Compliance Malfunction

In March of this year, Red Rock reported another malfunction to the board that resulted in 167 improper bets.

The company took action to void the bets and return the stakes to customers. Nevertheless, its conduct has “reflect[ed] poorly on the reputation of gaming in Nevada,” the regulator wrote.

“Respondents have had multiple opportunities to ensure their mobile sports wagering application operates in compliance with the Gaming Control Act. However, respondents have failed to do so,” wrote the board.

“This failure has repeatedly caused respondents to accept ostensible wagers from patrons on events whose outcomes had already been determined,” the regulator added.

“Respondents are responsible for any violation related to the Stadium Live program. Toleration of such repeated violations constitutes grounds for license revocation or other disciplinary action.”

The Nevada Gaming Commission will decide the nature of that disciplinary action at a future hearing.

CG’s Downfall

The regulator has come down hard on errant sports books in the past. CG Technology, formerly Cantor Gaming, used to be a visible sports betting brand at several major casinos on the Las Vegas Strip. These included the Venetian, the Palms, the Hard Rock Hotel, and the Tropicana.

But in November 2018, after issuing persistent fines and threatening license revocation for a litany of transgressions, the regulator told CG to scrap “every component” of its wagering technology and partner with a third-party provider within six months.

Over the years, CG had been hauled in front of the board on numerous occasions. Violations included facilitating illegal gambling and money laundering, accepting bets from outside the state on its Nevada-only mobile sports betting app, taking wagers after events had finished, and making incorrect payouts to 1,483 customers.

For this, CG paid three of the top ten fines ever issued to gaming companies by Nevada regulators.

It allowed itself to be acquired by William Hill in August 2020.