The cheater needs to be removed for everyone's benefit.
I agree. However, the full context of each case might be important, as with poster above who told the interesting story about “Cowboy” above.
As I read it, the poster had the dilemma that (a) surprisingly, the cheater played worse when cheating, and (b) in a very low-stakes game and the cheater would buy pizza for everyone to deflect from his cheating, the cost of which eclipsed the stakes of the game by a gigantic factor.
And (c) the poster had busted other players for cheating then gotten a lot of grief for it, so he felt pressure not to do it again. So I understand his rationale in that unique case.
FWIW, I had a situation come up at a casino some months ago which presented a kind of analogous dilemma.
A guy came into the room and was seated at a nearby table. I recognized him from some social hall games in the area: a very bad LAG, aggressive at all the wrong times... Also a loud and annoying talker. I also know (because he announced it in one of those games) that he went to jail for several major DUI violations. A crime I have no sympathy for, as it puts innocent lives in danger. In short—not a guy I’m starting out as wanting to do any favors.
From the nearby table, BadLAG kept yelling to the floor that he wanted a change to our table. He had a buddy there he really wanted to razz. He also kept yelling that ours was “the weakest table” in the room, so he really wanted a table change. It took a long time for him to get his table change, and he kept loudly complaining about it, so we got to hear this repeatedly over the course of an hour or so.
Anyway, BadLAG finally gets his table change—right next to me. He’s a huge, obese guy (also the type who wears sunglasses on his forehead which he theatrically lowers if he’s in a “big” hand). He starts manspreading like crazy, trying to take some of my space, but I shut that down with a hard arm on the rail. (He’s in Seat 2, I’m at Seat 3, nine-handed.) Still we’re pretty crammed in.
BadLAG keeps up his non-stop bombastic chatter, mainly directed at his buddy across the table, but also targeting others at the table. Commenting on the action, but also politics, people’s looks, his personal life, anything to be the focus of attention.
Almost immediately I notice BadLAG maintains almost no card security. He holds his cards far from the rail, peeling them almost all the way back, and often also lifting them up quite a bit.
Three times I mention this to him (“Careful, I can see your cards.”) In those cases. I was either out of the hand, or intending to fold anyway, so I didn’t announce what I saw—and no one asked.
BadLAG just kept exposing his cards anyway.
Between his generally obnoxious behavior, and the fact that I’d already warned him repeatedly, I shrugged and said to myself, “Fine, I guess he doesn’t mind me seeing his cards. I’ll use that info.”
However: If I got in a multiway hand with him and other players, and he had exposed his cards to me, I thought it wouldn’t be right not to say I’d been flashed a peek, and say what I saw if asked to.
The situation thankfully never come up. BadLAG blew through three short buy-ins in about 60 minutes, then left in a huff, bemoaning his “luck.”