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Casino M8TRIX License in Jeopardy


Casino M8TRIX License in Jeopardy after profit Skimming Accusations!

A california cardroom may find itself out of business if the state attorney general's office can prove Casino M8trix attempted to hide millions of dollars in profits. The state's Bureau of Gambling Control filed paperwork on May 2 accusing the San Jose cardroom of diverting significant income from its 49 poker tables to limited liability corporations (LLC) controlled by M8trix owners Eric Swallow and husband and wife team Peter and Jeanine Lunardi.

The payments to the LLCs were listed as expenses rather thatn distributions to owners, which reduced the amount of income M8trix reported to effectively zero in three of the four years between 2009 and 2012. This is not only reduced M8trix's tax bill but also its contributions toward city-run gambling addiction programs. The San Jose Mercury News reported that Swallow had admitted there were no invoices detailing the nature of the expenses for which the LLC's received "millions of dollars annually" from M8trix.