The Borgata Hotel Casino & Spa, one of the largest casinos in Atlantic City, has been found to have underpaid its taxes. New Jersey regulators revealed that the casino owed $1 million more than what it had paid. As a result, the regulators have mandated that Borgata pay this outstanding amount, along with a $75,000 fine and interest, totaling $1.3 million.
The casino's initial tax violation stemmed from a significant miscalculation, with gross revenue underreported by nearly $10 million, contributing to an additional underreporting of over $4.5 million. The first discrepancy occurred in March 2023 when bonuses were incorrectly claimed as deductions, resulting in $787,000 in unpaid taxes. This mistake led to an accumulation of $88,000 in interest and $40,000 in penalties.
The second instance of underreporting was identified in July 2024, attributed to a software update that caused a $365,000 tax shortfall, subsequently incurring $15,000 in interest and $18,000 in fines. According to authorities, all owed funds have already been remitted to the state. While Borgata and its parent company, MGM Resorts, have not publicly addressed the situation, regulators have confirmed that MGM Resorts has taken the necessary steps to rectify these issues.
