I would probably just pay the $500 rather than go through all that trouble going to trial and paying $50K. that is just me because I do not care what other thinks as long as I know that I did not cheat. I do not need to prove myself to anyone.
But I guess it is different for Stu since he has a reputation to uphold, and it seems to me that gambling is his source of income. If he gets banned because he is accused of cheating, it will have a large effect on his life. And I think he has the money to pay for the trial and everything.
You got a point, but the thing other casino will hear this news that he will gonna pay 500$ because he admits that he cheated then other casino won't ban him, because if they knew the knowledge he has in gambling that he can predict cards till the 3rd round casinos won't tolerate that and he might get kick in casinos because of that, if he really want to play more and be accepted in other casinos, just pay 500$ . He doesn't need to prove anything to other people.
That will affect your reputation as a gambler and casinos might easily acuse you as a cheater because of that bad record but if you will just quit playing for a while, you won't feel bothered and might live in peace.
I don't think spending $50,000 just to prove your innocence will still be worth it. They accused you already so there's no sense defending your side. It will cost you a lot of trouble and money. You don't have to protect your pride and ego that much if you know that you didn't violate anything not unless if you're a well-known person that has a reputation to protect.