Borgata in the Crosshairs: New Jersey Accuses Casino of Underreporting Revenue

The New Jersey Department of Gaming Enforcement said the Borgata Casino misreported promotional credits on its October 2023 through May 2024 reports. The $4.5 million was improperly reported, causing significant regulatory scrutiny. As a result, the underreporting of revenue resulted in a tax underpayment of $365,161, which was revealed in the June 2024 tax filing.

Borgata agreed to the regulator's decision and agreed to pay the $75,000 fine imposed by the authorities. The violation concerns BetMGM's online gambling operations, as noted by the regulator in an official notice addressed to Borgata's senior vice president and legal counsel Patrick Madamba. This is not the first time that the company has faced claims due to improper reporting of promotional credits.

Borgata already faced a similar situation in March 2023, when the company was accused of underpaying taxes in the amount of $787,000. This may have happened due to difficulties in accounting for a large volume of promotional credits.

Acting DEA Director Mary Jo Flaherty expressed concern about how these revenues are being recorded, saying that the violation is serious and repeated, which calls for special attention to the company’s operations.

Flaherty also noted that Borgata faces $1.3 million in back taxes and fines related to the violation. She noted that the repeat violation occurred less than 18 months after the first warning of potential serious consequences for similar actions.

While the fines for Borgata are within the range typically imposed for similar violations, the case highlights a larger issue. DraftKings, for example, was recently fined $100,000 for inaccurate sports betting data.

Mary Jo Flaherty has also publicly condemned DraftKings’ actions, saying that such behavior is unacceptable in the state of New Jersey.