The 2,767-room Borgata Hotel Casino & Spa has been hit with a bill of $75,000 after being found guilty of overstating the amount of promotional online gaming credits it dished out to punters during the eight months through to the end of May.
Operated by MGM Resorts International, the New Jersey property features 17 restaurants, seven bars, a 54,000 sq ft spa and a 2,400-seat theatre, as well as a 161,000 sq ft casino hosting approximately 4,000 slots and 180 gaming tables.
The 21-year-old facility also launched its real-money casino, Borgata Online Casino, in 2013 so as to offer iGaming aficionados a large selection of live-dealer, sports wagering, arcade, and slots entertainment.
Injurious Inflation
The New Jersey Division of Gaming Enforcement revealed the demand was issued after an official investigation determined Borgata Hotel Casino & Spa had exaggerated the amount of promotional online gaming credits it issued to punters between October of 2023 and May of 2024 by $4,564,515. The regulator disclosed this resulted in the venue’s most recent gross revenue tax bill coming up light to the tune of some $365,161.
The Interim Director for the New Jersey Division of Gaming Enforcement, Mary Jo Flaherty, used an official letter to explain Borgata Hotel Casino & Spa quickly corrected its mistake and moreover paid associated interest and tax penalties of $15,014 and $18,258 respectively.
Earlier Error
However, Flaherty stated this represented the second time in less than 18 months Borgata Hotel Casino & Spa had been found culpable of overstating the amount of promotional online gaming credits given to Borgata Online Casino players. She clarified the Atlantic City enterprise was warned in March of last year after an analogous mistake of $9,844,208 resulted in a gross revenue tax bill underpayment of over $787,000 and subsequent combined interest and penalty charges of $127,345.
Flaherty went on to assert the New Jersey Division of Gaming Enforcement treats such discrepancies seriously due to the fact Borgata Hotel Casino & Spa’s two mistakes could well have led to more than $1.1 million in lost tax revenues.
“These overstatements 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 New Jersey Division of Gaming Enforcement warned an additional violation of this type could result in a civil penalty is also to be considered.”
Stern Scolding
Flaherty finished by warning Borgata Hotel Casino & Spa as well as the firm directly responsible for the day-to-day running of Borgata Online Casino, the BetMGM partnership of MGM Resorts International and Entain, that any further comparable breaches could well result in ‘additional action, including monetary penalties’.
“This letter is also intended to serve as a reminder to Borgata and BetMGM of the requirements related to internet gaming promotional gaming credits and the need for the New Jersey Division of Gaming Enforcement approval before any deductions are taken,” Flaherty said.
“In this instance, the New Jersey Division of Gaming Enforcement has decided not to impose any financial penalty for this regulatory violation, and thus, only the gross revenue tax, penalty, and interest are due and payable in accordance with the above.”
Meet The Author
Alan Campbell has been reporting on the global gambling industry ever since graduating from university in the late-1990s with degrees in journalism, English and history. Now headquartered in the northern English city of Sheffield, he has written on a plethora of topics, companies, regulatory developments and technological innovations for a large number of traditional and digital publications from around the planet.
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