That's just Voorhees realizing too late that Internet gambling is illegal in the USA and that by telling US customers to go away the business will not be as profitable as it once was. It's a double edged sword and he was holding the handle. If you hope US customers don't stop gambling at your site then you're a criminal. If you really block them then you're no longer as profitable because all the really diseased gamblers were from the US. I said in a post long ago that no matter what happens with Bitcoin, succeed or fail, Voorhees will be rich. Time to retire off shore with all your wealth Erik. At least until the statute of limitations runs out. lol

http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1181&context=dltr

http://www.adlawbyrequest.com/uploads/file/2009_07_17%20U_S_%20Federal%20&%20State%20Online%20Gaming%20Law%20Survey.pdf

http://cyber.law.harvard.edu/fallsem98/final_papers/Glassberg.html

I hope he's paying taxes as a US citizen on that windfall. Even if you renounce your citizenship and live abroad your taxes are still due. lol
http://www.nolo.com/legal-encyclopedia/bitcoins-tax-liability.html
http://www.irs.gov/Individuals/International-Taxpayers

Assuming he didn't sell it to himself.

It would be a smart move to sell such business to own anonymous identity in order to waive any legal or moral obligations in the future.

Many Las Vegas casinos are run by publicly traded companies nowadays good luck trying to pull a fast one with their assets no slack there(=

He wouldn't owe any taxes if he never converts it to fiat or spends it on anything of substantial value. But if its a capital gain and is used like someone would usually use $11mil and he doesn't pay nearly half of it in taxes he can be put in prison. Read through the sources I posted above and you can get a pretty clear picture of what to report.