MOSES LAKE — The gambling license of a restaurant and casino that owes about $100,000 in municipal taxes and filed for bankruptcy reorganization has been suspended.
The Washington State Gambling Commission voted recently to lift the license of Cardroom Inc., doing business as the Porterhouse Restaurant, for 15 days after hearing that the business failed to pay local gambling taxes, disclose a lawsuit and report financial contributions by an owner, spokeswoman Susan I. Arland said.
Ten days are for the three charges and five are for violating an earlier settlement.
License holders are required to report criminal, administrative and civil proceedings, including bankruptcies and divorces, Arland said. Failure to disclose contributions is fairly common, but “having charges issued against you for failure to pay gambling taxes (is) very unusual,” she said.
“Usually people keep current on their taxes,” City Manager Joseph K. Gavinski said. “This was really unusual.”
Owners said the problem was a matter of paperwork, their own inexperience and overreaction by the commission.
“It was all administrative that there were some errors,” said owner Brian Rosborough, a partner with Steven Crothers. “It wasn’t criminal charges, it was just because I was late reporting some things. They’re having issues. That’s how regulatory they are.”
The Chapter 11 bankruptcy filing was “for a short-term deal to get things under control,” he said. “We have now hired an agency that will negotiate with the tax agencies and, quite frankly, we’ll just be set up on a payment plan.”
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