Borgata Fined $75k by NJDGE for Overstating Promo Codes

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Last Updated: 
Sep 2^nd, 2024

The New Jersey Division of Gaming Enforcement has fined Borgata Atlantic City $75,000 for overstating the promotional credits. 

Borgata Atlantic City operates numerous online casinos in the state. This time, it overstated its promotional credits by $4.6 million, resulting in $365,161 in underpaid taxes. 

During this process, the New Jersey Division of Gaming Enforcement found that a software upgrade to BetMGM NJ online casino caused the system to report more credits than was awarded. 

Still, the NJDGE had a firm response to Borgata following this, 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,” the letter started. 

“The fact that this conduct was repeated less than 18 months after the Division warned an additional violation of this type could result in a civil penalty is also to be considered. The Division notes that the underpayment of taxes was remedied quickly in each case, and software fixes were deployed to correct the reporting errors regarding PGCs,” the letter continued. 

Second Time in 18 Months

This is the second time in 18 months this has happened. The first time was back in March 2023. Then, it was a much larger amount of $9.9 million in overstated promotional credits. The underpaid taxes were more than double this second time around at $787,000. 

At that time, the NJDGE gave Borgata a warning, saying: 

“This letter is also intended to serve as a reminder to Borgata and BetMGM of the requirements related to Internet gaming PGCs and the need for Division approval before any deductions are taken. In this instance, the Division has decided not to impose any financial penalty for this regulatory violation, and thus, only the gross revenue tax, penalty and interest are due and payable in accordance with the above.”

The NJDGE didn’t fine Borgata that first time, but it did make it clear to them that if a second offense occurred, there would be fines, and we’re seeing that now as they must pay $75,000. 

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Last Updated: 
Sep 2^nd, 2024