New Jersey’s Division of Gaming Enforcement has accused the Borgata Hotel Casino & Spa in Atlantic City of underpaying its taxes on online gambling revenue by a staggering $1.1 million. The revelation came as a shock to many in the gambling industry, as the Borgata has long been hailed as one of the premier casinos in the state.
According to a report by MSN, the Division of Gaming Enforcement alleges that the Borgata failed to properly calculate and report its online gambling revenue for two years, from 2017 to 2019. The discrepancy was discovered during a routine audit of the casino’s financial records.
The Borgata, which is owned by MGM Resorts International, has denied any wrongdoing and has vowed to appeal the Division of Gaming Enforcement’s findings. In a statement released to the press, the casino stated, “We take our obligations under New Jersey law very seriously and believe that we have always been in full compliance with all regulatory requirements.”
Despite the Borgata’s protestations of innocence, state officials are taking the matter very seriously. The Division of Gaming Enforcement has already filed a complaint seeking the $1.1 million in alleged underpaid taxes, as well as additional penalties and interest.
This is not the first time that the Borgata has found itself in hot water with New Jersey regulators. In 2014, the casino was fined $43,000 for allowing underage patrons to gamble on its premises. The Borgata has also faced accusations of money laundering and other illegal activities in the past.
The Borgata’s troubles come at a difficult time for the Atlantic City gambling industry, which has been struggling in recent years. The seaside resort town has faced increased competition from neighboring states, as well as the rise of online gambling, which has siphoned off revenue from traditional brick-and-mortar casinos.
At the same time, the Borgata’s troubles could have wider implications for the gambling industry as a whole. With online gambling becoming an increasingly important revenue stream for many casinos, regulators will be closely watching to ensure that all operators are adhering to the strict tax laws in place.
As the Borgata gears up for a legal battle with the Division of Gaming Enforcement, the outcome of this case could have far-reaching consequences for the future of online gambling in New Jersey and beyond. Only time will tell how this story unfolds, but one thing is certain – the stakes are high for the Borgata and the entire gambling industry.
