Playgon Interactive has shut down its live dealer operations from its Las Vegas studio after being hit with a cease-and-desist order by the Nevada Gaming Control Board (NGCB).
The NGCB ordered Playgon and its affiliate, Bitrate Productions, as its live dealer content production did not have the appropriate licensing. The order, signed by NGCB Chairman Kirk Hendrick, alleged that Bitrate has been using live dealers to offer games such as baccarat and roulette, which are broadcast to online casinos around the world.
The NGCB also noted that Playgon’s legal counsel had indicated in 2016 that Bitrate’s activities would be for entertainment purposes only and would not require NGC licensing, but have since extended beyond social gaming.
Playgon and Bitrate were ordered to cease all unlicensed activities by 5 p.m. on July 26.
In its own release published at 8 a.m. ET on July 26, Playgon confirmed that it had suspended all relevant activities effective immediately.
Playgon ‘deeply disappointed’ with decision
Playgon stressed that it has operated with “the highest standards” of legal and regulatory compliance and conducted a thorough legal review before launching.
“The comprehensive legal opinion assured us that our business model was in full compliance with Nevada state laws. It is important to emphasize that our business is exclusively outside the U.S. and does not target Nevada or any U.S. state operators or players. The expert legal counsel advised that we were operating in a manner that did not fall under the state’s gaming jurisdiction.”
“We are deeply disappointed by the NGCB’s sudden decision, particularly given our history of operation and compliance in Nevada,” said Playgon CEO Darcy Krogh. “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.”
Playgon added it is exploring all available options to minimize disruption, including accelerating plans to expand its studio operations to other jurisdictions.
Playgon suggested it may look to challenge the NGCB order as its legal advisors maintain that its operations were within the bounds of the law. However, it noted that an appeal would be complex and “unlikely to succeed in a timely manner.”
