The Borgata and its parent company, MGM Resorts, did not respond to journalists’ requests for comment
New Jersey’s gambling regulators understood that the Borgata Hotel Casino & Spa, one of the biggest casinos in Atlantic City, has underpaid its iGaming taxes twice. The property, according to reports, did so by taking approximately $15 million more in credits than it was entitled to.
The NJ Division of Gaming Enforcement learned that the casino thus paid $1.1 million in taxes less than it should have. The regulator ordered the Borgata to pay the taxes it owes, including a $75,000 civil penalty and interest. As a result, the property had to pay $1.3 million instead.
In a letter by the DGE’s acting director, Mary Jo Flaherty, to the Borgata, the regulator emphasized the seriousness of the matter. Flaherty explained that the original violation was an “understatement of gross revenue by almost $10 million.” The second understatement was in the amount of more than $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. Mary Jo Flaherty, director, DGE
The first understatement stems by the wrong inclusion of millions in bonuses in deductions in March 2023. While the deductions should have only applied to slots, the Borgata also deducted almost $10 million in table games bonuses. This resulted in a tax underpayment of $787,000, which, in turn, resulted in $88,000 in interest and $40,000 in penalties.
The second understatement came in July 2024 and was caused by a software update, which deducted more credits than the awarded amount. This resulted in a $365,000 underpayment of taxes, incurring $15,000 in interest and $18,000 in penalties.
The money, according to the authority, has already been paid to the state. The Borgata and its parent company, MGM Resorts, did not respond to journalists’ requests for comment. However, regulators confirmed that MGM Resorts has introduced the necessary fixes to address the software problem.
Speaking of the Borgata, in July, an anonymous male, who claimed to be a guest at the luxury hotel and casino, said he was in possession of explosives and guns. This prompted an increased police presence at the venue and a visit from the AC Bomb Squad, although no explosives and guns were ever identified.
MGM Resorts, meanwhile, just decided to increase its debt sale from $675 million to $850 million. The extra proceeds from the initiative would be used for corporate purposes and to repay outstanding debts.
