Atlantic City’s Borgata underpaid its online gambling taxes by $1.1 million by claiming nearly $15 million more in credits than it was entitled to, New Jersey regulators said.
The state’s Division of Gaming Enforcement ordered the casino to pay the full amount due, along with penalties and interest totaling $1.3 million. This amount includes a $75,000 civil penalty, the regulator said on Thursday.
“The Division views this matter as serious,” acting director Mary Jo Flaherty wrote in an August 15 letter to Borgata. “The original violation was an understatement of gross revenue by almost $10 million. This second understatement of gross revenue was in an amount of over $4.5 million.”
The casino had previously violated the same regulations in March 2023, when it mistakenly included $9.8 million in table game bonuses in deductions that are supposed to apply only to slot games. This resulted in a $787,000 underpayment of taxes. Borgata was assessed nearly $128,000 in interest and penalties.
In July 2024, a software upgrade by Borgata’s parent company, MGM Resorts International, resulted in deducting more credits than the player bonuses that were actually awarded. This added $4.5 million in credits beyond what the casino was entitled to and a $365,000 underpayment in taxes. MGM was hit with more than $33,000 in interest and penalties for the violation.
“The fact that this conduct was repeated less than 18 months after the Division warned an additional violation of this type could result in a civil penalty is also to be considered,” Flaherty added.
The casino has since implemented software fixes to prevent future issues, according to regulators. Borgata continues to lead the Atlantic City market, earning over $771 million in the first seven months of this year, more than $300 million ahead of its closest competitor.
Original article: https://www.yogonet.com/international/noticias/2024/09/06/77830-atlantic-city-borgata-underpays-11m-in-online-gambling-taxes-claims-additional-15m-in-credits
