Playgon Discontinues Las Vegas Operations, Complies with NGCB Order

The SaaS technology company delivering mobile live dealer technology to online gaming operators globally, Playgon Games, recently received a cease-and-desist order from the gambling regulator in Nevada, the Nevada Gaming Control Board (NGCB). The letter, sent by the Board earlier this month, encouraged Playgon, as well as its affiliate, Bitrate Productions, to discontinue any unlicensed activities by 5 PM on July 26.

On Friday, Playgon released a statement, acknowledging it has received the cease-and-desist order from the NGCB. Per the order, the company was asked to halt the operations of its Las Vegas studio. In response to the Board’s request, Playgon confirmed it has “complied with the order” and effectively suspended all activities from its studio in Sin City.

“We are deeply disappointed by the NGCB’s sudden decision, particularly given our history of operation and compliance in Nevada.“

Darcy Krogh, CEO at Playgon Games

Darcy Krogh, Playgon Games’ CEO, revealed that the company is unhappy with the unexpected decision of the NGCB. He explained: “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.”

The Company Will Explore Options to Mitigate the Impact of the Recent Order

Playgon said that is currently analyzing different options to prevent any disruptions to its services. “This includes accelerating our plans to expand our studio operations to other jurisdictions where we can maintain our quality of service and compliance standards,” wrote the company.

Krogh warned that the cease-and-desist order impacts Playgon’s nearly 80 workers in Las Vegas. In his own words: “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.”

According to the company, the order of the NGCB is likely to have “material adverse effects,” particularly on its revenues. Still, Playgon confirmed it will continue exploring options to cushion the impact and vowed to disclose further updates when available.

Playgon Doesn’t Target Any Players in the US or Nevada

The NGCB’s decision was sudden and unexpected, especially considering that the company operated for years without any issues. In fact, Playgon said that prior to commencing operations in Las Vegas it sought legal advice and was notified that it complies with Nevada’s gambling regulations.

The company wrote: “The comprehensive legal opinion assured us that our business model was in full compliance with Nevada State Laws.” Additionally, Playgon highlighted that its business efforts focus exclusively outside of the United States and do not target any US or Nevada players or gambling service providers.

In light of the cease-and-desist order, Playgon confirmed it will seek further legal advice and determine the best course of action.