Nevada's gambling venue, Dotty's Slot Parlor, recouped close to $5 million due to an overpayment of gaming taxes.
Dotty's Slot Parlor Secures $4.85 Million Refund from Nevada Gaming Commission
Dotty's slot parlor, owned by Nevada Restaurant Services, has received a significant refund of nearly $5 million from the Nevada Gaming Commission, following an investigation into overpayment of gaming taxes.
The latest claim filed by Dotty's covers the period from September 2019 to August 2021. The refund includes a specific payout of $1.75 million, which is linked to $27.3 million in gaming revenue. This refund is a part of a larger ongoing resolution of the tax disputes between Dotty's and the Nevada Gaming Commission.
The overpayments were found to be linked to a Konami casino management system that failed to exclude cash promotions not considered gaming revenue from taxation. Dotty's agreed to forgo interest payments that would have exceeded $1 million in total, as per state law.
The initial $3.1 million refund was for overpayment of taxes on $46.9 million in gaming revenue. The Commission's staff spent 302 hours on the clarification and computation of the figures in question, for which Dotty's agreed to pay $60,400 to reimburse the Gaming Control Board.
Commission member Brian Krolicki stated, "At the end of the day we needed to do what was right. Companies shouldn't pay taxes that are too much, and they certainly shouldn't pay taxes that are too little. They need to be just right. This exercise is getting that." Commission member Rosa Solis-Rainey commended Dotty's for forgoing the interest payments once again.
It is important to note that Dotty's is unable to recover taxes paid on gaming revenue prior to September 2019 due to a five-year statute of limitation. The situation also highlights a provision in state law that allows Dotty's to seek interest payments in such cases.
The Commission's vote to give Dotty's an additional $1.75 million marks a step forward in resolving the ongoing tax disputes. The Commission is also expected to consider a third reimbursement for Dotty's, concerning bonus jackpot payouts, although the amount wasn't disclosed at the meeting.
[1] Nevada Gaming Commission approves $1.75 million refund for Dotty's slot parlor (2022) [2] Dotty's receives $3.1 million refund from Nevada Gaming Commission (2021)
- The ongoing resolution between Dotty's slot parlor and the Nevada Gaming Commission includes a recent $1.75 million refund, linked to $27.3 million in gaming revenue during the period from September 2019 to August 2021.
- The casino industry, in this case Dotty's slot parlor, has been impacted by a tax dispute with the Nevada Gaming Commission, with consequences reaching fintech systems such as the Konami casino management system, which failed to exclude cash promotions from gaming taxes.
- The casino-culture, represented by Dotty's casino personalities, has been noted for its compliance with state law, as Dotty’s agreed to forgo interest payments over a million dollars, a decision that was commended by Commission member Rosa Solis-Rainey.
