Atlantic City’s top casino, Borgata Hotel Casino & Spa, has come under fire for allegedly underpaying its online gambling taxes by $1.1 million, according to regulators.
The New Jersey Division of Gaming Enforcement announced the findings after an investigation into the casino’s online gambling revenue reports. The agency claims that Borgata failed to accurately report its online gambling earnings from January 2017 to March 2020, leading to a significant underpayment of taxes owed to the state.
Regulators say that Borgata’s underpayment was due to an error in the way the casino calculated its online gambling revenue, which led to an inaccurate assessment of the taxes owed. The Division of Gaming Enforcement has since ordered Borgata to pay the $1.1 million in back taxes, as well as an additional penalty for the oversight.
The news has shocked many in the Atlantic City gambling industry, as Borgata is one of the city’s most prominent and successful casinos. The casino, which is owned by MGM Resorts International, has long been seen as a leader in the online gambling market in New Jersey.
In a statement, Borgata acknowledged the error and pledged to work closely with regulators to rectify the situation. The casino also expressed regret for the oversight and reassured customers that their online gambling experience would not be affected by the incident.
The Division of Gaming Enforcement’s findings have raised concerns about the accuracy of online gambling revenue reporting in New Jersey, which has become an increasingly important source of revenue for the state’s casinos. Regulators have vowed to increase oversight of online gambling operations to prevent similar incidents from occurring in the future.
As Borgata works to comply with the Division of Gaming Enforcement’s orders, the casino’s reputation may take a hit in the eyes of both regulators and customers. The news serves as a warning to other casinos in Atlantic City to be vigilant in their financial reporting practices to avoid facing similar consequences.
