Atlantic City’s top casino, Borgata Hotel Casino & Spa, is under fire for allegedly underpaying its online gambling taxes by a whopping $1.1 million, according to regulators.
The New Jersey Division of Gaming Enforcement announced on Wednesday that it had discovered discrepancies in the taxes paid by Borgata for its online gambling operations. The casino, which is owned by MGM Resorts International, has faced criticism in the past for its tax practices, but this latest revelation has sparked outrage among regulators and lawmakers.
According to the Division of Gaming Enforcement, Borgata failed to accurately report its online gambling revenue and underpaid its taxes by over $1 million between 2014 and 2016. The watchdog agency has been investigating the matter for several months, and its findings have raised concerns about the casino’s compliance with state regulations.
MGM Resorts International, the parent company of Borgata, has denied any wrongdoing and insists that it has complied with all tax laws and regulations. In a statement, the company said, “We take our obligations to comply with state gaming laws and regulations very seriously and we believe that we have done so in this instance.”
However, regulators are not convinced and have vowed to hold Borgata accountable for its actions. David Rebuck, director of the Division of Gaming Enforcement, said in a statement, “We will not tolerate any company, including a casino, that fails to comply with the law and pay its fair share of taxes.”
The $1.1 million in underpaid taxes is a significant sum for Borgata, which is one of the largest and most profitable casinos in Atlantic City. The casino has been a major player in the online gambling market in New Jersey since it was legalized in 2013, and its failure to properly report its revenue has raised questions about the integrity of the industry as a whole.
Lawmakers in New Jersey have called for a full investigation into Borgata’s tax practices and have called on the Division of Gaming Enforcement to take swift action to ensure that the casino pays its fair share. State Senator Steve Sweeney, who has been a vocal critic of the casino industry in the past, said in a statement, “This latest revelation is deeply concerning and shows that we need stronger oversight of the gambling industry in New Jersey.”
Borgata’s underpayment of taxes is just the latest scandal to hit the casino industry in Atlantic City, which has struggled in recent years due to increased competition from casinos in neighboring states and the rise of online gambling. The city, once known as the gambling capital of the East Coast, has seen several casinos close their doors in recent years, leading to widespread job losses and economic hardship for residents.
As regulators continue to investigate Borgata’s tax practices, the casino’s future in Atlantic City remains uncertain. Lawmakers and residents are watching closely to see how the situation unfolds and whether the casino will be held accountable for its alleged misconduct.
