The Borgata Casino in Atlantic City agreed to pay a civil penalty of $75,000 to the New Jersey Division of Gaming Enforcement for overstating its internet casino gaming promotional credits, leading to an underpayment of tax revenue to the state.
The payment, which was accepted by the NJDGE last week, addressed the underpayments of gross revenue tax made from last October through May. The state agency conducted an audit and determined the promotional gaming credits related to BetMGM's iGaming platform were overstated by nearly $4.6 million. That resulted in underpayments totaling $365,161, which the Borgata paid through its June 2024 filing. The Borgata also paid $33,272 in interest and tax penalties after receiving an audit letter last month.
"The Division views this matter as serious," said NJDGE interim director Mary Jo Flaherty, who added that this is the second time in less than 18 months the Borgata overstated deductions after doing so in March 2023. "The original violation was an understatement of gross revenue by almost $10 million. The 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 over $1.3 million."
Flaherty noted that the agency recognized the Borgata was quick to remedy the underpayment of taxes in both cases, and that the Borgata has made software fixes to correct the reporting errors.
Second Incorrect Filing in as Many Months
BetMGM is one of five internet casino platforms licensed to the Borgata Casino along with its own digital skin, Party Poker, Pala/Stardust and Wheel of Fortune. The Borgata reported an all-time monthly high of $47.1 million in internet casino revenue for July, with BetMGM accounting for more than half that amount at $25.3 million.
It was the second time in as many months the NJDGE had to address incorrect revenue filings by a licensee. In July, the agency fined DraftKings $100,000 for submitting incorrect sports betting revenue reports for a four-month span from December through March.
