The Nevada gambling Commission (NGC) decided overwhelmingly to return $3.12 million in overdue taxes to Nevada Restaurant Services Inc., the operator of the popular Dotty’s gambling taverns.
As part of the settlement, privately held Nevada Restaurant Services agreed to waive claims for $222,744 in interest. That had been adding up to $446 every day, but some NGC members were hesitant to pay that money to the gambling operator since the claim was filed late.
Dotty’s parent is entitled to a refund since it did not take advantage of a Nevada casino tax provision that permits operators to deduct some promotional costs from gross taxable income. Nevada Restaurant Services later discovered that it was qualified to deduct.
In addition to Dotty’s, Nevada Restaurant Services operates gambling taverns in Nevada under the Bourbon Street, La Villita, Points! Casino, and Red Dragon brand names.
Nevada owes Dotty’s parents more money.
The $3.12 million refund is not the only one coming to Nevada Restaurant Services from the NGC.
It was also determined that the gaming bar operator is due $1.8 million for overpayments made over the course of two years. The Dotty’s owner will take that sum but waives the right to interest payments.
The overpayments occurred when NRSI failed to properly remove wagered cashable electronic promotion sums from its $46.9 million gross revenue. According to The Las Vegas Review Journal, state statutes allow corporations to deduct particular promotional expenditures from taxable income, which NRSI disregarded.
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There are 120 Dotty’s locations in Nevada, 80 of which are limited gaming sites, with 15 gaming machines per venue. Dotty’s pubs feature up to forty gaming gadgets. Table games are not available at any of the properties or other facilities owned by the corporation.
How Does Nevada Gaming Promotion Deduction Work?
Nevada’s requirements for deducting some promotional costs are rather straightforward, but operators must be vigilant on this front. This involves keeping thorough documentation and regularly testing systems that may be used in the deduction claiming process.
“All computerized player monitoring, promotional accounts, promotion, and external bonusing slot systems (in-house and vendor systems) are evaluated at least once a year by staff who are not associated with the persons who set up or update the system settings. According to the Nevada Gaming Control Board (NGCB), the review is conducted to ensure that the configuration parameters are correct and have not been changed without appropriate management authorization (e.g., player tracking system – verify the accuracy of point awarding based on dollar amount wagered).
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