The Nevada Gaming Commission (NGC) has unanimously agreed to refund $3.12 million in overpaid taxes to Nevada Restaurant Services Inc., the operator behind the popular Dotty’s gaming taverns. This decision is part of a larger settlement, where Nevada Restaurant Services also consented to forfeit $222,744 in accrued interest, which had been accumulating at a rate of $446 per day. Some NGC members were hesitant about refunding the interest since the gaming operator was late in filing the claim.
The substantial refund is due to Nevada Restaurant Services realizing it could deduct certain promotional expenses from its gross taxable revenue, a provision within Nevada’s gaming tax code it had initially not utilized. Besides Dotty’s, the company also operates other gaming taverns under various brands, including Bourbon Street, La Villita, Points! Casino, and Red Dragon.
In addition to the $3.12 million, Nevada Restaurant Services is poised to receive another $1.8 million refund for two years’ worth of overpayments. The overpayments occurred because the company failed to properly deduct cashable electronic promotion amounts from its $46.9 million gross revenue. Although the operator will accept this refund, it will forgo the corresponding interest payments.
Nevada Restaurant Services manages 120 Dotty’s locations across the state, with 80 of these being restricted gaming sites, each housing 15 gaming machines. Twenty-seven of the Dotty’s taverns feature up to 40 gaming devices, although none of their properties include table games.
The Nevada gaming tax structure allows operators to deduct certain promotional expenditures, but it requires meticulous documentation and regular system testing to ensure accuracy. According to the Nevada Gaming Control Board (NGCB), operators must conduct annual reviews of all computerized player tracking and promotional systems. These reviews must be carried out by personnel independent of those who set up or modify system parameters, ensuring no unauthorized changes have been made and the configurations remain accurate.
