Nevada sports betting operator CG Technology (CGT) has reached a $16.5m settlement with federal agencies over its connections to illegal gambling and money laundering operations.

On Monday, the US Attorneys for the Eastern District of New York and the District of Nevada, along with the New York Police Department, the United States Postal Inspection Service (USPIS) and the Internal Revenue Service’s criminal division, announced a joint non-prosecution agreement with CGT over its involvement with an illegal messenger betting service.

The illegality stretches back several years, back when CGT was still known as Cantor Gaming, a sports betting offshoot of Wall Street financial services firm Cantor Fitzgerald. Cantor made a splashy arrival in Nevada’s sportsbook market but Robert Capers, US Attorney for the Eastern District, said “this growth came at the expense of compliance with the law.”

Daniel Bogden, the US Attorney for Nevada, added that Cantor had admitted violating federal laws by “accepting messenger betting, out-of-state betting and processing large amounts of monies which were the proceeds of illegal activities.” Capers said Cantor “became a place where at least two large-scale illegal bookmakers could launder their ill-gotten proceeds.”