The Nevada Gaming Control Board (NGCB) has issued cease and desist orders to two live gaming content companies: Playgon Interactive, Inc. and its affiliate, Bitrate Productions.
The order forced the companies, as well as their employees and affiliates, to stop unlicensed activities by 5 p.m. local time on Friday, July 26. The NGCB threatened civil or criminal charges if the companies failed to meet the order.
“We are deeply disappointed by the NGCB’s sudden decision, particularly given our history of operation and compliance in Nevada," commented Playgon Interactive CEO Darcy Krogh in a release.
"The limited time frame provided by the NGCB has left us with no viable option to contest the order or seek a resolution without total disruption to our business for an extended period so we are forced to pursue other options for a studio location. Further, we are particularly distressed by the impact this decision will have on our 79 local employees and their families as a result of this order.”
NGCB: Bitrate Productions operated without proper licensing
The NGCB alleges that Bitrate Productions had been using dealers based in Las Vegas for its live dealer broadcasts, which it supplied to Playgon Interactive. Playgon Interactive then delivered these live dealer games to online casinos operating globally. The live dealer games featuring Las Vegas dealers included roulette and baccarat. However, the NGCB says Bitrate Productions is not licensed to provide this service.
The Board discussed live dealer games with Playgon and Bitrate in 2016, with the companies claiming that licensing from the Nevada Gaming Commission was unnecessary as its broadcasts were only for entertainment purposes, not gambling. The NGCB noted in its release that “at some point, however, Bitrate’s activities went beyond social gaming.”
Nevada continues to protect brick-and-mortar gambling
Despite being the first state many players think of when considering gambling, Nevada hasn't legalized certain types of gambling, like online casinos, to protect its land-based casino industry. Its tight regulations on broadcasting live dealer games are included in this policy.
Nevada's reluctance to legalize online casinos is mirrored in many other U.S. states. In May, Lauren Sieler, the founder of Global Gaming Advisors, commented on the slow progress of online casino legalization, arguing that this year's presidential election is partly to blame.
About Playgon Interactive and Bitrate Productions
Playgon Interactive is a software development company based in Vancouver that was established in 1985 and is traded on the Toronto Stock Exchange. The company specializes in providing live dealer content. The company also supplies eTable games, Daily Fantasy Sports (DFS) services, and more. All content is optimized for mobile use.
Bitrate Productions is based in Las Vegas, producing live dealer content for Playgon Games North America live dealer content. The company has 12,000 square feet of casino broadcasting space where it produces live content with professional dealers.
