Mercury News: Casino M8trix charged with hiding profits, could lose license
By: Mark Gomez
SAN JOSE — Casino M8trix is facing an accusation by the state Attorney General of hiding millions of dollars in profits to avoid making required payments to a non-profit organization, a claim that may threaten to close the doors of the gambling establishment, according to a city official.
The state Attorney General’s Office filed a report on May 2 that accuses the casino of “engaging in a shell game with tens of millions of dollars to avoid making legal required payments under a settlement agreement with city and likely to avoid federal and state tax allegations,” said city councilman Sam Liccardo.
The accusation will be heard by the California Gambling Control Commission, Liccardo said.
Sean Kali-rai, a spokesman for casino, declined to discuss specifics of the accusation, but said “Casino M8trix believes that the charges are unfounded and that the legal process will show that to be the case.”
Liccardo has read the Attorney General’s allegation and said the casino has been accused of “hiding well in excess of $60 million in profits.”
If the state gaming commissions finds the accusation to be true, Liccardo wants the city “to revoke the permit permanently and shut their doors.”
According to an agreement reached in 2009 with the city, Casino M8trix must pay $125,000 or 5.15 percent of its profits to Asian Americans for Community Involvement to fund a gambling addiction program.
The casino has made the minimum payment of $125,000 in three of four years, claiming it’s not making any profits, Liccardo said.
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