The California Attorney General’s office recently filed papers that accused the M8trix of hiding millions of dollars in profits from tax authorities and a nonprofit group. The California Gambling Control Commission has decided to postpone a decision on renewing the M8trix’s license until the allegations have been investigated. They will schedule a hearing to collect additional evidence before making a decision on the license.

The allegations arose from an agreement the M8trix struck with the Asian Americans for Community Involvement. The agreement states that the M8trix must pay either $125,000 or 5.15% of its profits to the nonprofit to help fund initiatives to fight gambling addictions. The casino head of the Asian Americans for Community Involvement claims that the casino underreported its profits to avoid paying the fees that it owed under the contract.

Sean Kali-rai, a spokesman for the M8trix, has repeatedly stated that the accusations are unfounded. The state’s four gambling control commissioners are trying to keep an open mind, but stated that they are very serious. Richard Lopes, the Chairman of the California Gambling Control Commission, said that the group will need to wait and see what the evidence shows by rendering a decision on renewing the license.

The attorney general has scheduled a hearing with an administrative judge to discuss the issue. The two hearings will be consolidated to determine whether the accusations are true.

Even if the Commission decides the allegations are true, the M8trix may still be allowed to keep its license. Richard Schuetz was the only one of the four commissioners that voted against postponing the decisions. Schuetz favored imposing new requirements on the casino before renewing its license. His colleagues may concur with that decision if they find the M8trix deliberately withheld profits. Commissioner Tiffany Conklin said they shouldn’t rush to make a decision that could have serious long-term consequences for both the casino and the community.

Staff - Various members of the staff at contributed to this report.