Circa Hospitality Group, a gaming operator, reportedly failed to disclose tax collections required to be levied on rewards within their loyalty program over several years.
According to a Las Vegas Review-Journal report, deceived clients filed a class-action lawsuit against the company for concealing this information. Both the parent company and its subsidiaries are involved in the case. The plaintiffs demanded an end to the alleged “fraudulent trade” and tax law violations. Customers noticed that additional taxes were charged after purchases at Circa establishments, which later turned out to be unreported in the company’s accounting.
The lawsuit specifies that Circa Hospitality is obliged to compensate approximately $3.75 million in damages over the last four years, the duration of the loyalty program. The court date is yet to be scheduled, but the case suggests that more than 10,000 individuals enrolled in the bonus programs could be involved in the investigation and trial.
Circa Hospitality specializes in turnkey events in South Africa and organizes various entertainments, including gambling activities.
