Bovada, a prominent offshore and unregulated sportsbook and casino operator, has recently halted its operations in both Michigan and Colorado. This decision follows legal notices issued by the respective gaming regulators in these states, demanding that Bovada cease its activities. Let’s delve into the details.
Regulatory Actions in Michigan and Colorado
The Michigan Gaming Control Board (MGCB) took swift action by sending a cease-and-desist letter to Bovada on May 29. Harp Media B.V., the parent company based in Willemstad, Curaçao, had 14 days to prevent Michigan residents from accessing their gambling services. The MGCB cited violations of several Michigan gaming laws, including the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code. Operating unlicensed gambling services in the state could result in imprisonment or hefty fines.
Colorado followed suit shortly after Michigan. Although the exact date of Colorado’s notice is unspecified, the state also issued a cease-and-desist letter to Bovada, prompting the operator to add Colorado to its list of restricted states.
Expanding List of Restricted States
As of June 20, Bovada updated its Terms & Conditions to exclude residents of Nevada, New Jersey, New York, Maryland, Delaware, Michigan, and Colorado. While Bovada complies with direct orders from state regulators, it remains illegal across the entire United States under the 2006 Unlawful Internet Gaming Enforcement Act. The offshore operator exits state markets only when explicitly instructed by regulatory authorities.
Lisa Keith, the public information officer for the MGCB, emphasized the board’s vigilance: “The Michigan Gaming Control Board is encouraged to see that Bovada has now identified Michigan as a restricted state on their website. While this is a good indication that they are taking our cease-and-desist letter seriously, we will continue to closely monitor the status of their offerings in Michigan and take appropriate action as deemed necessary.”
Potential Connecticut Exit
Connecticut could be the next state where Bovada faces an exit. The state’s Department of Consumer Protection (DCP) issued a cease-and-desist letter to Harp Media B.V. on June 14, threatening criminal and civil penalties if the operator does not halt its illegal online gambling services. The DCP’s letter highlighted the violations of state law and required Bovada to allow Connecticut residents to withdraw their funds.
Kaitlyn Krasselt, DCP Communications Director, confirmed the issuance of the cease-and-desist letter: “There are only three companies licensed to operate in Connecticut: DraftKings, Fanatics, and FanDuel, including Mohegan Sun Casino powered by FanDuel Group.”
Massachusetts Considering Action
Massachusetts is also contemplating measures against Bovada. During a June 12 meeting, the Massachusetts Gaming Commission (MGC) discussed potential actions but did not reach a decision.
