Just a few months ago, Bryan Micon, operator of the former Bitcoin poker site SealsWithClubs.eu (SWC), was hiding out in Antigua and mounting a legal defense against Nevada gaming regulators. And he returned to Las Vegas to settle his case, recently pleading guilty to one felony count of operating an unlicensed interactive gaming system in exchange for avoiding jail time. That said, let’s look at what punishments Micon will face, how this case began, and if the end result was fair.
Micon to pay Fine, give up Computers and Bitcoins
While Micon pleaded guilty to a felony, he can get the charge reduced to a gross misdemeanor by completing probation (TBA) and paying a $25,000 fine. Additionally, he’s agreed to forfeit $900 in cash, computers and 3.01 Bitcoins that were seized by Nevada gaming authorities during a February raid of his Vegas home. According to the Las Vegas Review-Journal, Micon’s attorney, Richard Schonfeld, called the agreement “an appropriate resolution.”
When did Nevada start watching SealsWithClubs?
The Nevada Gaming Control Board first became aware of SWC in August 2013, when a Belgian player complained about the site. Following a later investigation, gaming regulators discovered that Micon, a Vegas resident, ran SWC from March 2014 to February 2015 “without first procuring and thereafter maintaining in effect the required licenses.” In Skype chat logs obtained by gaming agents, Micon said that SWC was earning between $10,000 and $12,000 in profits every month.
Did Micon get a Fair Deal in the Bitcoin Case?
This was truly an interesting case because the relationship between Bitcoin and online poker sites is murky. Many argue that since Bitcoin is not regulated by a central government or bank, the U.S. government has no right to take any legal action against these sites. Well that may or may not still be the case, but Micon’s situation was more unique because he’s a U.S. resident living in a state that regulates online poker. Considering this, the Nevada Gaming Control Board went after him on grounds that he was operating an unlicensed iGaming site.
The maximum penalty for a felony interactive gaming charge is 10 years in prison and a $50,000 fine. Taking into account that this is an unprecedented case, it seems right to let Micon off with only fines and jail time. Even still, a $25k fine and thousands of dollars in seized assets is no slap on the wrist. So anybody who continues operating Bitcoin sites, like Micon’s foreign partners at SwCPoker.eu, will definitely not be living in the U.S. when running such a site.