Playgon Interactive has reacted to a cease and desist order from the Nevada Gaming Control Board demanding the supplier halts live casino production in the state.
The supplier responded to the order by confirming that it has complied and will suspend all activities at its Las Vegas studio, outlining plans to expand into new jurisdictions to resume operations “as soon as possible”.
Along with its affiliate Bitrate Productions, Playgon has been accused of producing live casino content with live dealers in Nevada without having the appropriate licensing to do so.
Signed by the regulator’s Chairman Kirk Hendrick, the order suggests that Bitrate’s live-streamed games, such as Baccarat and Roulette, which are broadcast to casinos globally require appropriate licensing from the Nevada Gaming Commission.
Bitrate has not secured the licensing deemed necessary by the NGCB, and Playgon actually outlined via legal counsel in 2016 that Bitrate’s services would not require a NGC licence due to being ‘for entertainment purposes only’.
The NGCB has determined that Bitrate’s live casino services have expanded beyond social gaming, explaining the need for the cease and desist order.
Darcy Krogh, CEO of Playgon Games, stated: “We are deeply disappointed by the NGCB’s sudden decision, particularly given our history of operation and compliance in Nevada. 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.”
The letter, dated July 18, demands that Playgon, Bitrate and all affiliated entities cease all unlicensed activity by 5pm on July 26. Failure to comply with the order may lead to criminal or civil action being taken by the regulator.
Responding to the regulatory action, Hendrick affirmed: “The NGCB will take all necessary actions to enforce Nevada’s gaming laws and regulations.”