The Borgata Hotel Casino & Spa in Atlantic City has been fined $75,000 by the New Jersey Division of Gaming Enforcement (DGE). The casino overstated its iGaming promotional credits (PGCs) by more than $4.5 million, which led to the penalty.
During the period of October 2023 to May 2024, the DGE audit found anomalies in Borgata’s BetMGM iGaming platform. According to the audit, the casino inflated PGCs, which resulted in a gross revenue tax underpayment of more than $360,000. This is not the first time Borgata has had this kind of problem. The DGE discovered a comparable infraction in March 2023. In the previous instance, Borgata inflated PGC deductions by $9.8 million, which led to a tax underpayment of more than $787,000.
Interim Director of the DGE, Mary Jo Flaherty, expressed growing concern over the recurring nature of these violations. “The Division views this matter as serious,” Flaherty stated. She emphasized that the recent infraction occurred less than 18 months after the DGE warned the casino that any further violations could lead to civil penalties.
Quick Corrections and Penalty Agreement
Notwithstanding the gravity of the circumstances, Borgata acted promptly to make up for the underpayment of taxes in both instances. Additionally, the casino updated its software to stop PGC-related reporting problems in the future. Borgata offered to resolve the matter with a $75,000 civil fine, and the DGE accepted.
Even though the financial disparities have been reconciled, the persistent violations underscore the necessity for enhanced adherence. The DGE’s vigilant oversight demonstrates its dedication to maintaining fair play in the gaming sector in New Jersey.
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