A Denver man has been found guilty of running an illegal gambling operation that stretched across multiple Colorado cities.
Jonathan Arvay, 38, was convicted by a federal jury of conspiracy and operating an illegal gambling business, the U.S. Attorney’s Office for the District of Colorado announced on Tuesday.
Arvay was the operator of Player One Arcade, a gambling parlor in Denver that was part of a larger network of illegal operations that extended from Greeley to Pueblo.
These gambling parlors featured electronic games disguised as arcade-style games, as well as virtual slot machines, offering patrons an illegal avenue to place bets.
How the Scheme Worked?
Customers at these parlors would play arcade-like games or virtual slot machines, earning credits as they played. These credits could then be exchanged for Obsidian Digital Asset Coin, a cryptocurrency used exclusively within the parlors.
Players would exchange this digital currency for cash at ATM-like machines located inside the gambling establishments, or in nearby facilities.
However, these exchanges came with transaction fees, adding to the illegal profits generated by the operation.
According to the FBI’s Denver Special Agent in Charge Mark Michalek, Arvay and his associates ran a sophisticated gambling scheme that operated both online and in physical locations in cities such as Pueblo, Colorado Springs, Lakewood, Aurora, and Greeley.
“These defendants created a large, complex illegal gambling operation that thrived across several Colorado communities,” Michalek said.
Details Remain Limited
The U.S. Attorney’s Office release did not provide information on how long Arvay’s gambling business had been in operation, or when he was initially arrested or charged.
Additionally, the identities of other individuals involved in the illegal network were not revealed. It is unclear whether more arrests or convictions are expected in connection with this case.
Arvay’s sentencing is scheduled for December 12th, where he faces significant prison time for his role in the illegal operation.
The exact penalties he may face will be determined by the court based on the severity of his actions and his involvement in the broader gambling network.
Illegal Gambling’s Impact on Communities
Illegal gambling operations like the one run by Arvay can have far-reaching consequences. They often prey on vulnerable individuals, leading to addiction, financial loss, and strained family relationships.
Moreover, these unregulated businesses evade taxation and deprive local governments of revenue that could otherwise be used for public services and community development.
Law enforcement agencies continue to crack down on illegal gambling operations in an effort to protect the public and preserve the integrity of legal gambling venues.
This case serves as a reminder of the complexities and dangers associated with illegal gambling rings and the importance of maintaining law and order within the industry.
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Looking Forward
As the investigation continues, authorities are focused on identifying additional individuals involved in this large-scale illegal gambling operation.
The U.S. Attorney’s Office and the FBI are committed to dismantling these illicit networks and ensuring that those responsible are held accountable.
The outcome of Arvay’s sentencing in December will set a precedent for future cases involving illegal gambling in Colorado and beyond.