A Federal District judge sentenced 38-year-old Jonathan Arvay of Denver to one year and one day for operating an illegal gambling business in Colorado.
A federal jury found Arvay guilty of one count of conducting an illegal gambling business and one count of conspiracy to conduct an illegal gambling business. During the trial, prosecutors said Arvay operated Player One Arcade in Denver, part of a network of gambling parlors extending from Greeley to Pueblo. They showed how the gambling games resembled arcade games and virtual slot machines in which customers attempted to earn credits.
According to investigators, those credits customers won would be turned into purported cryptocurrency, which were exchanged for cash at a nearby ATM.
“This was a modern version of old-fashioned illegal gambling,” said Acting United States Attorney Matt Kirsch. “I am grateful for our local and federal partners who helped put this criminal in prison.”
The FBI Denver, IRS, and the Pueblo Police Department investigated.
“This sentence reflects an appropriate resolution to a complicated case: When you launder money and commit fraud against the government, the FBI and our partners will track you down across jurisdictions,” said FBI Denver Special Agent in Charge Mark Michalek in a statement.
