Borgata Casino has received a fine from the New Jersey Division of Gaming Enforcement for overstating its online casino promotional credits by over $4.5m.
The DGE explained that incorrect reporting between October 2023 and May 2024 overstated the operator’s igaming promo credits by $4,564,515, resulting in an underpayment of gross revenue taxes.
According to the Garden State regulator, Borgata underpaid its gross revenue taxes by $365,161 on its June 2024 tax filing. The BetMGM partner has agreed to pay a $75,000 fine.
Interim Director at the DGE, Mary Jo Flaherty, issued a letter to Borgata SVP and Legal Counsel Patrick Madamba, writing that the regulator had identified an error on the BetMGM igaming platform reports, which was submitted by Borgata between October 2023 and May 2024.
This is the second New Jersey tax underpayment from Bogata in 18 months, Flaherty pointed out. The casino operator was found in March 2023 to have overstated its igaming promo credits by nearly $10m, resulting in an underpayment of over $787,000.
“The Division views this matter as serious,” said Flaherty. “The original violation was an understatement of gross revenue by almost $10m. This second understatement of gross revenue was in an amount of over $4.5m. These understatements resulted in the assessment of additional taxes, tax penalties and interest of over $1.3m.
“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.”
However, Flaherty did note that underpayment issues were resolved quickly in both cases, but did stress that claiming promotional gaming credits in excess of the amount of the bonus issued is “a clear violation” of legislation.
