It’s been a few years since the Department of Justice went after the big three poker sites for violating federal law and processing financial transactions through US banks. But today comes a new story about another casino violating the law in a major way. Only this time, it has nothing to do with the online world.
Casino M8trix in San Jose, California is facing serious legal issues after apparently hiding big profits from the state. The attorney general’s Bureau of Gambling Control has filed an accusation that the card room created a bunch of corporate entities to hide the income being reported.
They casino’s license might not necessarily need to be revoked. The license is due to expire on May 31st, so if the state chooses not to extend the license, the card room wouldn’t be able to operate.
We’re not sure if that will actually happen, though. The M8trix is one of two card rooms that pays the city, collectively, about $15 million per year. That’s the most of any business in the area, so we’re talking a hefty chunk of change, even with the card room allegedly hiding some of it profits.
However, the state takes the situation seriously, particularly because of the repercussions. The casino is supposed to help fund a gambling-addiction program, and the state is alleging that the under-reporting of income shortchanged that as well.
We’re surprised that a casino would operate this way, but we think that speaks to the small-scale nature of the casino. Big casinos like Wynn and Caesars, or any of the big Atlantic City properties, have a huge management team behind them that won’t mess around when it comes to financials. We’re not sure that’s the case here.
So what about the online world? Do licensed casinos have to pay tax? Absolutely. Not only do casinos like Silver Oak Casino pay taxes in the country in which they operate, but they also pay fees to be regulated by international gambling bodies. What’s more, by highlighting payout percentages, companies can get a clear picture of the type of revenue being generated at a typical online casino.
If you live in San Jose and are planning to play at M8trix, call ahead first to make sure they haven’t been shut down. If they have, you can always sign up for Silver Oak to provide you with your favorite casino entertainment.