Borgata Casino in Atlantic City underpaid online gambling taxes by $1.1M

New Jersey gambling regulators have identified significant tax underpayments by the Borgata Casino in Atlantic City, amounting to $1.1 million. The casino improperly claimed nearly $15 million in credits, leading to a substantial understatement of gross revenue. The Division of Gaming Enforcement highlighted that the casino's actions were serious, especially since they occurred less than 18 months after a prior warning regarding similar violations. In March 2023, the Borgata incorrectly included $9.8 million in bonuses from table games in deductions meant solely for slot games, resulting in a tax underpayment of $787,000. This error incurred additional interest and penalties, totaling nearly $128,000. A subsequent software upgrade in July 2024 further exacerbated the issue, as it led to the casino deducting more credits than the actual player bonuses awarded. This mistake added $4.5 million in excess credits, resulting in a $365,000 tax underpayment, along with further penalties and interest. The Borgata has since rectified the software issues and paid the full amount owed, including a civil penalty of $75,000. Despite these infractions, the casino remains a leading performer in the state, having won over $771 million from gamblers in the first seven months of the year, significantly outpacing its competitors.