United States District Judge Gordon P. Gallagher has sentenced Jonathan Arvay, 38, of Denver, to one year and one day in prison for conducting and conspiring to conduct an illegal gambling business, the U.S. Attorney’s Office for the District of Colorado announced today.
According to trial evidence, Arvay operated Player One Arcade in Denver, part of a gambling parlor network stretching from Greeley to Pueblo, the department said.
According to the U.S. attorney’s office, the parlors offered electronic gambling games designed to resemble arcade games and virtual slot machines where customers earned credits.
“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 U.S. attorney’s office explained that customers could exchange credits for a purported cryptocurrency, Obsidian Digital Asset Coin (ODAC).
However, ODAC’s only function was to be converted into cash using an ATM-like “cryptocurrency teller machine” located next to or inside the gambling parlors, the department stated.