Published on: November 4, 2024, 08:37h.
Last updated on: November 4, 2024, 08:37h.
The Nevada Gaming Commission (NGC) has unanimously approved a refund of $3.12 million in overpaid taxes to Nevada Restaurant Services Inc., the operator of Dotty’s gaming taverns.
In a settlement, Nevada Restaurant Services agreed to waive $222,744 in interest, which was accruing at $446 per day. Some NGC members were hesitant to refund this amount due to a late claim filing.
The parent company of Dotty’s is eligible for a refund because it did not utilize a Nevada gaming tax provision allowing operators to deduct specific promotional expenses from taxable revenue. Nevada Restaurant Services later discovered this deduction opportunity.
Aside from Dotty’s, Nevada Restaurant Services operates gaming taverns in Nevada under various brands such as Bourbon Street, La Villita, Points! Casino, and Red Dragon.
Nevada Owes Dotty’s Parent More Money
In addition to the $3.12 million refund, Nevada Restaurant Services is also owed $1.8 million for two years of overpayments, for which it will forego interest payments.
The overpayments resulted from NRSI failing to deduct certain promotional expenses from its gross revenue, according to The Las Vegas Review Journal.
Nevada has 120 Dotty’s locations, with 80 being restricted gaming venues with 15 gaming machines each. Twenty-seven Dotty’s taverns have up to 40 gaming devices, and none of the properties offer table games.
How Nevada Gaming Promotion Deduction Works
Nevada’s guidelines for deducting promotional costs require operators to maintain accurate documentation and regularly test systems for deduction claims.
According to the Nevada Gaming Control Board (NGCB), systems related to player tracking, promotional accounts, and external bonusing slots must be reviewed annually to ensure accuracy and prevent unauthorized changes.