Former Casino M8trix owner Eric Swallow says the state broke the law by forcing him to sell his stake in the card club to his business partner.

Casino M8trix owners are accused of operating a $119 million shell game to hide profits. While the key players have clammed up, there is an election at hand and political points to be won and lost.

The nearly two-year standoff between the city of San Jose and owners of Casino M8trix may finally be coming to an end. On Monday, owners of the Tetris-adorned tower and card club filed papers to pull their lawsuit over several disputes—mainly the city’s rejection of gaming on the top/eighth floor. Sean Kali-Rai, a lobbyist for the card club, said he met City Manager Ed Shikada last week for coffee and had his “first meaningful interaction” with a city official in six months.

San Jose’s top casino cop has had enough. In his first interview since Casino M8trix filed lawsuits in February against the city of San Jose, Richard Teng, the San Jose Police Department’s gaming administrator, called accusations against him “a political nightmare.” There is history in this dispute.

UPDATE: San Jose Police Chief Chris Moore conducted a public hearing Monday morning at CityHall, but no immediate approval was given to Casino M8trix’s permit request. The casino will be allowed to open once it meets the conditions set forth by administrator Richard Teng, of the SJPD Division of Gaming Control. Casino operators were given the opportunity to speak at the hearing but declined.

Richard Teng, the San Jose Police Department’s administrator for the Division of Gaming Control, gave a new glimpse into the fight between Casino M8trix and the police Friday, when he sent out a memo recommending that Casino M8trix be allowed to open its doors if eight recommendations are met. Police Chief Chris Moore will hold a permit hearing at 10am Monday at City Hall to consider Teng’s report and decide if Casino M8trix can open.

UPDATE: When will Casino M8trix open? Maybe as soon as July 20. City officials say they are cautiously optimistic Police Chief Chris Moore will grant the casino its necessary permits at a hearing July 19, because the card room owners have relented and agreed to open the first floor only while continuing negotiations on how top floor gaming will be managed. But casino owner Eric Swallow says the city never contacted him about such an arrangement.

Eric Swallow currently owns the city’s oldest card room, Garden City Casino, with partners Peter and Jeanine Lunardi, and they want nothing more than to shut down the aging facility and replace it with a 21st-century gambling establishment. Casino M8trix is a $50-million, 16-story highrise alongside Highway 101 near San Jose’s airport. The casino’s owners are in a standoff with San Jose Police Chief Chris Moore and some members of city staff.