The Borgata Casino is currently facing scrutiny from the Division of Gaming Enforcement due to $4.5 million of promotional credits that were not properly reported. The regulator discovered that the casino had understated its taxable revenue, leading to a discrepancy in the tax filing.

Between October 2023 and May 2024, the Division of Gaming Enforcement found that the Borgata had earmarked $4.5 million in promotional credits, but failed to categorize the funds correctly. This issue has sparked conversations about the need for changes in reporting practices within the market.

Since promotional credits are deducted from revenues, the Borgata ended up paying less in taxes, resulting in an estimated $365,161 shortfall in their June 2024 tax filing. The casino has accepted the regulator’s ruling and has agreed to pay a fine of $75,000 as a penalty.

The breach in reporting concerns the BetMGM iGaming operations at the Borgata, according to a statement from Borgata SVP and legal counsel, Patrick Madamba. This is not the first time the company has been reprimanded for misreporting promotional credits, as a similar incident occurred in March 2023 when they underpaid $787,000.

Mary Jo Flaherty, the Interim Director of the New Jersey Division of Gaming Enforcement, expressed concerns about the casino’s tracking of revenue. She emphasized the seriousness of the understatement and noted that this was the second violation by the company.

Overall, the Borgata Casino’s handling of promotional credits has come under fire, and it remains to be seen if further regulatory action will be taken to address these issues. It is clear that accurate reporting of revenue is crucial in maintaining transparency and compliance within the gambling industry.