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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Gambling Lounge May Lose Liquor License Mars Hotel Allegedly Served Alcohol To Drunken Gamblers, Owes Back Taxes

The Ugly Rumors Lounge is facing some hard facts.

The popular gambling lounge in the Mars Hotel and Casino could lose its liquor license for reportedly serving drinks to drunken gamblers and failing to pay $90,000 in taxes.

A hearing is scheduled later this month before a state judge.

“The recommendation is cancellation of the liquor license,” said Robert Stamper, agent in charge of the Liquor Control Board’s Spokane office.

The casino at Sprague and Bernard owes the city of Spokane more than $80,000 in unpaid gambling taxes, interest and fines.

It also owes the state an estimated $10,000 in unpaid unemployment taxes.

The city has one court judgment against the Mars for delinquent gambling taxes, and a second suit is pending in Spokane County Superior Court.

Owner Robert Saucier said he hopes to resolve the alleged liquor violations by negotiating a settlement with the Liquor Control Board.

“The agents locally are a little overzealous,” Saucier said.

He said he has met and discussed the pending violations with Liquor Board Chairman Nate Ford.

Saucier is being represented by attorneys Frank Miller of Tacoma and Bob Tull of Bellingham. Miller once served as a director of the Gambling Commission and Tull is a former chairman.

Legislation passed in Olympia last year allowed the Mars to expand its blackjack and other casino-style games.

Even if he settles the alleged liquor violations, Saucier still faces the city’s attempt to veto his liquor license for not paying gambling taxes.

On Monday night, Saucier asked the City Council to reduce the gambling tax from 20 percent to 5 percent. Mayor Jack Geraghty ordered a staff report on how the reduction would affect the budget.

The city got a $26,055 default judgment against the Mars for not paying its second-quarter gambling taxes. The city now has a $54,000 suit pending to collect third-quarter taxes.

“That’s still an issue,” Saucier said. “We do have a plan. Obviously, this is something that has to be resolved.”

The state Employment Security Department also is trying to block renewal of the Mars liquor license, records show.

The gambling and unemployment taxes are delinquent for the second and third quarters of this year - from April 1 through Sept. 30.

The current quarter taxes are due Dec. 31.

The hotel also hasn’t fully paid its $2,444 annual rent for use of a city sidewalk converted to restaurant space, city auditor Paul Tanners said Monday.

There are four liquor law violations pending against the business.

The four citations were written in the last 15 months, and three of them involve allowing an intoxicated person to consume liquor.

“Two of the people being overserved were gambling,” Stamper said.

A fourth citation alleges the bar allowed someone under 21 into the lounge where liquor is served.

“We feel there’s been a problem with over-service (of liquor) there for a long time,” Stamper said.

The license, which costs $2,000, expires Nov. 30.

If the delinquent taxes are paid by then, the state could issue temporary 30-day liquor licenses if the judge needs time to consider the permanent revocation.

, DataTimes MEMO: This sidebar appeared with the story: If you go A hearing on the Mars Hotel and Casino liquor license revocation is scheduled for Nov. 26 in Spokane before a state administrative law judge from Olympia. It is set for 9 a.m. at the state Liquor Control Board office, 1303 W. Broadway, and is open to the public.

This sidebar appeared with the story: If you go A hearing on the Mars Hotel and Casino liquor license revocation is scheduled for Nov. 26 in Spokane before a state administrative law judge from Olympia. It is set for 9 a.m. at the state Liquor Control Board office, 1303 W. Broadway, and is open to the public.