Borgata Casino has officially reached a $75,000 settlement with the New Jersey Division of Gaming Enforcement due to it’s second revenue overstatement within the last 18 months which resulted in more than $1 million in unpaid taxes.
A letter issued to the legal team of Borgata back on August 15th said that the company overreported $4.5 million in promotional BetMGM iGaming credits which resulted in a $365,161 underpayment in the state of New Jersey taxes earlier this year, which, under state lay, operators can deduct these credits and other free play from their taxable revenue.
The first incident was back in March of 2023 when Borgata overstated similar credits by around $9.8 million which led to a short of $787,000 and resulted in a warning that any future infractions could result in monetary penalties.
“The Division views this matter as serious” NJDGE Interim Director Mary Jo Flaherty wrote in the letter (h/t Legal Sports Report). “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. These understatements resulted in the assessment of additional taxes, tax penalties and interest of over $1.3 million,” Flaherty said.
“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.”
The NJDGE accepted Borgata’s offer to pay a $75,000 civil penalty, covering interest and tax penalties.
