Borgata fined $75k by New Jersey DGE for overstating promotional credits
This marks the second time the property has been fined for the infraction in less than 18 months.
The New Jersey Division of Gaming Enforcement (DGE) has fined the Borgata Hotel Casino & Spa in Atlantic City $75,000 for overstating its iGaming promotional credits (PGCs) by more than $4.5m.
The DGE released a letter to the property including the finding of reports from October 2023 through May 2024 that show “improper Internet Gaming PGC deductions that did not comply with the Division’s PGC guidance.”
On July 10, the DGE issued an audit and assessment finding that PGCs from Borgata’s BetMGM iGaming platform were overstated by over $4.5m, resulting in an underpayment of gross revenue tax of over $365,000.
“This overstatement of PGCs and subsequent underpayment of gross revenue tax was the second such finding against Borgata in less than 18 months,” DGE Interim Director Mary Jo Flaherty said in the letter.
“On March 27, 2023, the Division had issued an earlier audit finding that Borgata had overstated PGC deductions by $9.8m, resulting in a gross revenue tax underpayment of over $787,000.”
Flaherty also went on to state the growing concern the DGE has been feeling now that this is the second infraction committed by Borgata in less than two years, having written, “the Division views this matter as serious. 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.”
The DGE accepted Borgata’s offer to pay the civil penalty of $75,000, and acknowledged that the underpayment of taxes in both cases were corrected quickly and software fixes have been installed to correct the property’s reporting errors in regard to PGCs.
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