Denver Man Found Guilty of Operating Illegal Gambling

The US Attorney’s Office for the District of Colorado announced that a man from Denver has been found guilty of operating illegal gambling. The 38-year-old individual’s sentencing has been scheduled for December.

The Man Operated a Gambling Parlor

According to the attorney’s office, Jonathan Arvay was found guilty of running an electronic arcade called Player One Arcade. Based in Denver, the business was part of a larger network of gambling parlors across the state.

Arvay was found guilty of a single count of conducting an illegal gambling business and a single count of conspiracy to conduct an illegal gambling business.

The court described Player One Arcade as a facility that offered titles made to resemble arcade games, as well as virtual slot machines, which players could engage with to earn credits. Customers could basically play the games of their choice and exchange any credits they won for a purported cryptocurrency from Obsidian Digital Asset Coin.

The crypto tokens could then be exchanged for cash at a machine resembling an ATM that was located next door to the gambling hall. The attorney’s office noted that customers were required to pay a transaction fee to exchange crypto for US dollars.

Arvay is set to be sentenced on December 12.

Fraudsters Find New Ways to Defraud the Government

According to attorney Matt Kirsch, such gambling dens disguise themselves as “arcades with a veneer of legitimacy.” Kirsch slammed these businesses for causing harm to the community and praised the police for having identified and cracked down on the illegal establishment.

FBI Denver special agent in charge Mark Michalek noted that Player One Arcade was part of a complex illegal gambling operation with hubs in Pueblo, Colorado Springs, Lakewood, Denver, Aurora and Greeley. The group also had an online presence, he added.

The FBI noted that the gambling parlors and their “illicit proceeds led to crimes involving money laundering and fraud against the US government.”

The IRS Criminal Investigation Denver Field Office was concerned about the operation as it highlighted fraudsters’ intense efforts to devise new ways to evade their tax liability and defraud the government. The IRS added that the authorities will remain vigilant and develop new investigative methods to track the illicit funds.