Current:Home > ScamsAtlantic City’s top casino underpaid its online gambling taxes by $1.1M, regulators say -WealthX
Atlantic City’s top casino underpaid its online gambling taxes by $1.1M, regulators say
View
Date:2025-04-14 07:09:00
ATLANTIC CITY, N.J. (AP) — New Jersey gambling regulators say Atlantic City’s top-performing casino, the Borgata, underpaid some of its internet gambling taxes twice by taking almost $15 million more in credits than it was entitled to.
That led the casino to pay $1.1 million less in taxes than it should have.
The state Division of Gaming Enforcement said the casino was ordered to pay the full amount of taxes due, with penalties and interest totaling $1.3 million.
The Borgata also will pay $75,000 as a civil penalty, the state said.
State officials could not immediately say Thursday whether the money has yet been paid, although a document posted on the division’s web site noted that the underpayment of taxes “was remedied quickly in each case.”
“The Division views this matter as serious,” its acting director, Mary Jo Flaherty, wrote in an Aug. 15 letter to the 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 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,” she wrote.
The Borgata declined to comment Thursday; its parent company, MGM Resorts International, did not respond to requests for comment.
In March 2023, the Borgata wrongly included $9.8 million in bonuses including table games in deductions that are supposed to be only for slot games, resulting in a tax underpayment of $787,000. It was assessed nearly $88,000 in interest and nearly $40,000 in penalties.
In July 2024, a software upgrade by MGM resulted in deducting more credits than the amount of player bonuses that were actually awarded. That added $4.5 million in credits beyond what the casino was entitled to, and a $365,000 underpayment of taxes. It was assessed more than $15,000 in interest and over $18,000 in penalties for this violation.
The credits are designed to relieve the casinos from paying taxes on some free play given to customers once the bonuses reach a certain level. In New Jersey, the first $90 million in promotional credit is taxed as part of gross revenue, but once that threshold is passed, anything above it is not taxed.
Regulators said the company made software fixes to correct the problem.
For the first seven months of this year, the Borgata has won more than $771 million from gamblers, more than $300 million ahead of its closest competitor.
___
Follow Wayne Parry on X at www.twitter.com/WayneParryAC
veryGood! (3)
Related
- Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
- Two families sue Florida for being kicked off Medicaid in 'unwinding' process
- Windows are shattered in a Moscow suburb as Russia says it thwarts latest Ukraine drone attack
- North Korea’s Kim lambasts premier over flooding, in a possible bid to shift blame for economic woes
- Former Danish minister for Greenland discusses Trump's push to acquire island
- 'Hell on wheels' teen gets prison in 100 mph intentional crash that killed boyfriend, friend
- Conference realignment will leave Pac-12 in pieces. See the decades of shifting alliances
- Bachelorette's Charity Lawson Joining Dancing With the Stars Season 32
- Cincinnati Bengals quarterback Joe Burrow owns a $3 million Batmobile Tumbler
- Untangling Ariana Grande and Scooter Braun's Status Amid Demi Lovato's Management Exit
Ranking
- 2 killed, 3 injured in shooting at makeshift club in Houston
- Tropical Storm Harold forms in Gulf, immediately heads for Texas
- Woman admits bribing state employee to issue driver’s licenses without a road test
- Selena Gomez Reacts to AI Version of Herself Singing Ex The Weeknd’s Song “Starboy”
- NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
- ‘Get out of my house!’ Video shows 98-year-old mother of Kansas newspaper publisher upset amid raid
- MLK’s dream for America is one of the stars of the 60th anniversary of the 1963 March on Washington
- Drones downed in Moscow and surrounding region with no casualties, Russian officials say
Recommendation
Meet first time Grammy nominee Charley Crockett
Can South Carolina’s Haley and Scott woo the GOP’s white evangelical base away from Trump?
'Inhumane': Louisiana man killed woman, drove with her body for 30 days, police say
Feeling dizzy? It could be dehydration. Here's what to know.
Questlove charts 50 years of SNL musical hits (and misses)
Scary landing as jet’s wheel collapses on touchdown in California during Tropical Storm Hilary
Tropical Storm Harold forms in Gulf, immediately heads for Texas
'A miracle:' Virginia man meets Chilean family 42 years after he was stolen as newborn