FinCEN fines California card room; Casino M8trix owner to fight license suspension

An owner of popular San Jose card room Casino M8trix appears set to lose his state gaming license following an administrative court ruling.

Last week, Judge Mary-Margaret Anderson recommended that state gaming officials strip Eric Swallow of his license and slap him with a $430k fine to resolve a variety of allegations, including providing false information to regulators.

The state Gambling Control Commission won’t make a decision on the recommendation until February but Swallow told the San Jose Mercury News that he intends to appeal the ruling. Swallow noted that regulators, who had been seeking restitution of up to $18.8m, had failed to prove its more serious allegations.

In May 2014, the California Bureau of Gambling Control (BGC) launched proceedings against Casino M8trix owners Swallow and the husband and wife team of Peter and Jeanine Lunardi. The three stood accused of failing to report millions of dollars in profits, thereby reducing the venue’s tax bill as well as its contributions to local responsible gambling programs.