The Nevada Gaming Commission (NGC) recently made a unanimous decision to refund $3.12 million in overpaid taxes to Nevada Restaurant Services Inc., the company behind Dotty’s gaming taverns. This decision also included forgoing claims to $222,744 in interest that had been accumulating at a rate of $446 per day. Some members of the NGC had concerns about refunding this interest due to the late filing of the claim by the gaming operator.
The refund was granted to Nevada Restaurant Services because they did not initially take advantage of a Nevada gaming tax provision that allows operators to deduct certain promotional expenses from their gross taxable revenue. After realizing their eligibility for this deduction, the company filed for a refund.
In addition to Dotty’s, Nevada Restaurant Services operates gaming taverns under other brands such as Bourbon Street, La Villita, Points! Casino, and Red Dragon in Nevada. The company is entitled to another refund of $1.8 million for overpayments made over two years, which resulted from not properly deducting certain promotional expenses from their gross revenue.
The Nevada Gaming Control Board (NGCB) outlines guidelines for operators to follow when claiming deductions for promotional expenses. Operators are responsible for maintaining accurate documentation and conducting regular system checks to ensure compliance with deduction claiming processes.
Nevada Restaurant Services owns a total of 120 Dotty’s locations in Nevada, with 80 of them being restricted gaming locations and 27 with up to 40 gaming devices each. Despite the large number of gaming machines, none of the properties offer table games to patrons.
Overall, the decisions made by the NGC regarding tax refunds highlight the importance of thorough record-keeping and adherence to state regulations for gaming operators in Nevada. By following guidelines set by the NGCB and being diligent in claiming deductions, operators can avoid overpayments and ensure compliance with tax provisions.
