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Richard Teng claims he hasn't worked for a casino since 1985
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Casino M8trix has filed a lawsuit against San Jose and others, claiming that it took too long to open the gambling center near the airport and that one key reason for the delay was because of an alleged conflict of interest.
The federal and state lawsuit were filed Friday naming San Jose, its Division of Gaming, and Richard Teng, administrator of the police department's division of gaming control as defendants.
The suit claims Teng 'used his position of power and authority to carry out a campaign of harassment' against them. Casino M8trix owners argue that Teng also has a substantial conflict of interest because he works as a consultant for other casinos and racetracks. In deposition, Teng said that his own CPA company also consults for casinos throughout the country. The plaintiffs in the lawsuit fear that Teng has the ability to share proprietary information among his wide spread of clients.
'I do some work for tribal casinos,' Teng admitted according to the court documents reviewed by NBC Bay Area.
'I do some work for tribal casinos,' Teng admitted according to the court documents reviewed by NBC Bay Area.
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But Teng fired back. He told NBC Bay Area on Tuesday that he hasn't consulted for a casino since 1985.
'There is absolutely no conflict,' he said. 'All my work as an independent contractor has been approved by my supervisor. I don't do any work that would conflict with San Jose cardrooms.'
This is the casino's third lawsuit against San Jose. Pathfinder vs blackjack.
The M8trix owners said they had initially been led to believe they could open April 3. The casino opened Aug. 8.
The federal lawsuit also claims the city has had a 'long history of unreasonable, harassing and malicious conduct' that delayed the card club's ability to do business in its new digs - a modern, lit-up, eight-story structure on Airport Parkway, renamed to Matrix Boulevard.
In January, Former Police Chief Chris Moore denied Casino M8trix's plans for gambling. His decision came after Teng outlined a series of the potential problems to effectively monitoring gambling, which also drew opposition from nearby one-story rival Bay 101 Casino.
The lawsuit claims Teng and police gave Bay 101 preferential treatment and that Bay 101 hired Dennis Faz, the former administrator, within months of his retirement in June 2011, 'thereby courting and carrying the good favor of the division by rewarding one of its departing employees with a secure and comfortable post-retirement position.'
The casino owners argue that San Jose police are targeting M8trix customers by responding to 80 calls for service for parking violations and expired registrations. During the same time period at Bay 101, police responded to two such calls, according to the lawsuit.
The federal lawsuit also claims the city has had a 'long history of unreasonable, harassing and malicious conduct' that delayed the card club's ability to do business in its new digs - a modern, lit-up, eight-story structure on Airport Parkway, renamed to Matrix Boulevard.
In January, Former Police Chief Chris Moore denied Casino M8trix's plans for gambling. His decision came after Teng outlined a series of the potential problems to effectively monitoring gambling, which also drew opposition from nearby one-story rival Bay 101 Casino.
The lawsuit claims Teng and police gave Bay 101 preferential treatment and that Bay 101 hired Dennis Faz, the former administrator, within months of his retirement in June 2011, 'thereby courting and carrying the good favor of the division by rewarding one of its departing employees with a secure and comfortable post-retirement position.'
The casino owners argue that San Jose police are targeting M8trix customers by responding to 80 calls for service for parking violations and expired registrations. During the same time period at Bay 101, police responded to two such calls, according to the lawsuit.
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'The unfortunate circumstance of the months of delay in opening the Casino M8trix, is that the victim has not just been the casino and its employees - some of whom had to find jobs elsewhere because of the delay, but also the city of San Jose and the taxpayers,' according to a statement put out by the casino. 'If the delay in opening was related to the conflict of interest then not only did the casino lose millions in revenue but the dity and the taxpayers lost hundreds of thousands of dollars that was rightfully their fair share of that revenue. All this at a time when that money is needed to put more police officers on the streets.'
By Wesley Severson - Published on November 02, 2020.
Voters in San Jose will decide on a plan in this election to raise taxes on two casinos operating in the city. Measure H, also known as the Cardroom Tax, would increase the gross revenue tax for Bay 101 Casino and Casino Matrix from 15% to 16.5% while expanding the number of gaming tables.
This would generate roughly $15 million dollars for the city of San Jose’s general fund which the city desperately needs. In April, as reported by the Mercury News, the city said it expected to be dealing with a $110 million dollar budget shortfall over the next two years because of the pandemic.
But there is a tradeoff inside Measure H that has many people, including San Jose Mayor Sam Liccardo, publicly coming out against the measure. The plan would allow 30 new card tables to open up in the city. That means Bay 101 Casino and Casino Matrix could each add 15 new tables to their gaming areas.
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San Jose Mayor Sam Liccardo has spoken out against expansions in the gambling sector for years. He told KPIX that he believes the potential social impacts of more gambling options will end up costing the city in the long run in the form of social services.
'The child neglect, the domestic violence that results. Social science has found direct links to gambler activity and gambling addiction,' said Mayor Liccardo. He told KPIX the city could have increased taxes on the casinos without expanding the number of tables.
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But some other city officials believe that Measure H is still worth the potential harms for the city — and gambling already exists there, so what's a few more tables? Casino Matrix and Bay 101 Casino are in the district of San Jose City Councilmember Raul Peralez who supports the measure.
He said to KPIX that the city needs the extra $15 million dollars to pay for obvious things like police and fire services and road maintenance.
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San Jose City Councilmember Johnny Khamis also supports the measure. He told the San Jose Spotlight that he believes gamblers will simply go somewhere else if San Jose casinos don’t expand.
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If Measure H passes it would mark the first expansion of card tables in San Jose in a decade. Adding more table games still requires voter approval, according to the city's gaming policy.
Measure H also creates a new tax that would generate revenue from 3rd party proposition players like banks and other financial services that help casinos run their day-to-day operations.