New Jersey Gaming Regulator Fines Borgata Over Promotional Credits

The Borgata Casino in New Jersey has been fined by the state's Division of Gaming Enforcement (DGE) for inflating its promotional gaming credits by more than $4.5 million between October 2023 and May 2024. This overstatement led to a significant underpayment in gross revenue taxes, totaling $365,161 on the casino's June 2024 tax filing. The casino, which operates in partnership with BetMGM for both iGaming and sports betting, has agreed to pay a $75,000 fine as a result of the violation.

Details of the Violation
The DGE’s findings were communicated in a letter to Borgata's SVP and Legal Counsel, Patrick Madamba. According to the DGE’s interim director, Mary Jo Flaherty, the error was identified in the reports submitted by Borgata, which were linked to BetMGM's iGaming platform. Despite the seriousness of the issue, BetMGM has not provided any comment about it.

• The DGE found inflated promotional credits totaling $4.5 million.

• Borgata’s June 2024 tax filing showed an underpayment of $365,161.

• The casino accepted a $75,000 fine for the violation.

Repeat Violations Raise Regulatory Concerns
This incident marks the second time in less than 18 months that Borgata has been penalized for similar discrepancies. In March 2023, the casino overstated its iGaming promo credits by nearly $10 million, underpaying over $787,000 in taxes. Flaherty emphasized that repeated violations resulted in additional taxes, penalties, and interest of over $1.3 million.

• Borgata corrected the underpayments both times.

• DGE warned of further regulatory action due to repeat offenses.

• Inflating promotional credits breaches New Jersey gaming regulations.

Broader Enforcement Efforts in New Jersey
The Borgata's fine is part of a wider compliance push by the DGE, which has penalized other major operators. DraftKings was fined $100,000 for reporting errors in sports betting data, while bet365 was ordered to reimburse over half a million dollars to bettors for altering odds without regulator notification.

• DraftKings fined for incorrect tax filings from Dec 2023–Feb 2024.

• bet365 sanctioned for unreported odds changes.

• DGE continues to tighten enforcement on gaming compliance.

These incidents reflect the DGE's ongoing efforts to ensure transparency and accountability within New Jersey's gaming sector. The fines and corrective actions reinforce fairness and accuracy across the rapidly growing industry.