San Jose Megacasino Owners Sue City

Casino owners call (the courts) on city's delays.

By Chris Roberts
|  Thursday, Mar 29, 2012  |  Updated 9:38 PM PDT
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San Jose Casino Delays Opening

The grand opening for this mega-casino near the airport has been delayed.

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San Jose Casino Delays Opening

Casino M8trix, a giant $50 million card room, is awaiting licensing from the San Jose police department so it may open April 3. But the cops haven't come calling, which led the casino to ask a judge to get involved.
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If San Jose police are bluffing, the owners of a mega-casino near the airport have called. With a lawsuit.

Casino M8trix, a giant $50 million card room, is awaiting licensing from the San Jose police department so it may open April 3. But the cops haven't come calling, which led the casino to ask a judge to get involved.

The police have "cleverly stalled" in making a decision on whether the casino can open, owner Eric Swallow said in court last week, according to the San Jose Mercury News.

The city countered, calling the casino's deadline "arbitrary" and "false."

The owners applied for a required card room permit amendment and landowner's license last March, and  submitted requested financial documents the following month, according to the newspaper. They argue that the city was required to make a decision with six months.

Police have "abused their discretion" over the card room's license and delaying the scheduled opening will affect 720 employees -- including 300 new hires -- costing the casino and the city, which taxes its operation at 15 percent, millions of dollars, the newspaper reported.

The city countered that the casino was informed in November that the permitting wouldn't be done until April 30, the newspaper reported.

Part of the delay stems from the card room's desire to have gambling on multiple floors, which presents a security concern, according to police.

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