Nevada gaming taxes of Dotty's slot parlor were excessively paid, resulting in a reimbursement of approximately $5M.
In a recent meeting, the Nevada Gaming Commission voted to grant Dotty's slot parlor chain an additional $1.75 million in refund for overpaid gaming taxes. This latest payout, based on $27.3 million in gaming revenue, follows an initial refund of $3.1 million in August 2021.
The original refund was for gaming taxes on a total of $46.9 million in gaming revenue. As per state law, Dotty's, owned by Nevada Restaurant Services, had the right to seek interest payments, but the chain agreed to forgo interest payments that would have exceeded $1 million in total.
The latest claim filed by Dotty's covers the period from September 2019 to August 2021. Commission member Brian Krolicki noted the extensive staff time (302 hours) spent on the clarification and computation of the figures. As a result, Dotty's also agreed to pay $60,400 to reimburse the Gaming Control Board for 302 hours of investigative work.
Commission member Rosa Solis-Rainey praised Dotty's for forgoing interest payments again. The overpayments were due to a Konami casino management system that failed to note the exclusion of cash promotions from taxation. Commission member Brian Krolicki stated, "At the end of the day we needed to do what was right."
The dispute is not the first for Dotty's regarding gaming taxes and regulatory compliance. However, detailed public records or reporting specifically about systematic tax overpayments and reimbursements to the Nevada Gaming Commission are not widely documented in public domain sources.
A third claim is pending regarding bonus jackpot payouts, with the amount undisclosed. A third reimbursement is forthcoming for Dotty's, but millions of dollars from before the five-year statute of limitation (September 2019) cannot be recovered.
This news comes as the gaming industry continues to recover from the challenges posed by the COVID-19 pandemic. The Nevada Gaming Commission's decision to approve the additional refund underscores its commitment to ensuring fairness and accuracy in gaming operations within the state.
The casino-culture within Nevada, as represented by Dotty's slot parlor chain, continues to engage with the Nevada Gaming Commission over gaming tax discrepancies, such as the casino-games revenue from cash promotions that were miss-taxed. This ongoing discussion, including a pending claim for bonus jackpot payouts, highlights the commission's focus on ensuring fairness and accuracy, reflecting the casino-and-gambling environment in the state.
