Nevada authorities return $3.1 million to Dotty's due to excess tax payment
Nevada Gaming Commission Agrees to Refund $3.1 Million to Dotty's Slot Parlor
The Nevada Gaming Commission has approved a refund of $3.1 million to Dotty's Slot Parlor, a commercial casino in Las Vegas, due to an error in the calculation of gaming taxes. The overpayment stems from a Konami casino-management system that failed to account for cash promotions not classified as gaming revenue.
Dotty's, owned by Nevada Restaurant Services, had been operating under various names before being acquired by northern Nevada gaming operator David Tate for non-gaming purposes. The gaming revenue in question, amounting to $46.9 million, is approximately 6.75% of the total amount.
Commission member Brian Krolicki raised concerns that paying interest could be unfair to taxpayers, but Dotty's had the right to seek interest payments under state law. The interest payment, which had been accumulating daily at $446 and was calculated at 41⁄4%, will now be returned to Dotty's.
In a move to mitigate the refund, Dotty's offered to forgo nearly a quarter-million-dollars in interest. The Commission accepted this offer, reducing the total refund to $3.1 million.
This decision comes after a series of regulatory challenges faced by Dotty's in Nevada. In 2011, the Nevada Gaming Commission amended regulations to require taverns with gaming, including Dotty's, to have a nine-seat bar, 2,000 square feet of public space, and a kitchen operating at least half the time the business was open. Clark County also adjusted its tavern laws to ensure gaming was incidental rather than the main revenue source. Dotty's unsuccessfully contested these changes in federal court in 2012.
Despite these challenges, Dotty's continues to operate legally within Nevada, expanding its operations post-regulatory amendments. Gerard Crosby, officer, director, and general manager of Konami, recently received a license from the Nevada Gaming Commission.
Crosby, appearing via Zoom from Sydney, Australia, expressed optimism about Konami's performance and the overall industry growth in the U.S., Australia, and elsewhere. The Nevada Gaming Commission also approved a race and sports book license for William Hill to operate at the Tahoe Nugget in Stateline, Nevada. The sportsbook at the Tahoe Nugget consists of a William Hill kiosk placed at the property.
The Commission's decision on the refund to Dotty's marks a significant development in the casino's history. However, it does not affect the five-year statute of limitations, preventing Dotty's from recovering additional millions of dollars prior to 2019. The casino is also preparing a second claim for refund, covering gaming revenue from 2019, for which the amount is yet to be calculated. Dotty's is seeking to be reimbursed an additional $1.8 million by the gaming regulators.
The Nevada Gaming Commission's decision to refund $3.1 million to Dotty's Slot Parlor, a casino in Las Vegas, highlights the financial aspect of the industry, considering the overpayment was due to a casino-management system error related to cash promotions. In the future, Dotty's aims to recover more funds, potentially filing a second claim for a refund covering gaming revenue from 2019, thus indicating the ongoing relationship between the casino and the finance industry.
