Borgata Casino fined by NJ regulator

Borgata Casino in Atlantic City has reached a $75,000 settlement with the New Jersey Division of Gaming Enforcement for a second revenue overstatement in the past 18 months.

Enforcement said that Borgata staff overreported $4.5 million in promotional BetMGM iGaming credits earlier this year, which resulted in a $365,161 underpayment in taxes to the state.

A previous audit by enforcement in March, 2023 found that Borgata staff had overreported similar iGaming credits by $9.8 million. This overreporting resulted in a $787,000 tax shortfall. The violation in 2023 resulted in a warning from enforcement to the Borgata which noted that future infractions could lead to monetary fines.

New Jersey Division of Gaming Enforcement Interim Director Mary Jo Flaherty responded to the Borgata’s errors by stating, “The Division views this matter as serious. The original violation was an understatement of gross revenue by almost $10 million. This second understatement of gross revenue was in an amount of over $4.5 million. These understatements resulted in the assessment of additional taxes, tax penalties and interest of over $1.3 million.”

In 2023 the enforcement audit revealed that the Borgata had erroneously included table game bonuses in their calculation of iGaming promo credits. This error was attributed to a software upgrade which inadvertently caused the system to deduct more credits. In 2024 the Borgata said it happened again due to a similar software problem.

New Jersey Division of Gaming Enforcement accepted Borgata’s settlement offer to pay a $75,000 penalty, covering interest and tax penalties from the reporting error. According to enforcement the Borgata has since implemented software fixes to ensure reporting errors do not continue.