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Home » Bovada Exits Michigan and Colorado After Regulatory Warnings
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Bovada Exits Michigan and Colorado After Regulatory Warnings

June 24, 2024No Comments3 Mins Read
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bovada_now_restricted_in_michigan_and_colorado_after_cease_and_desistsBovada, an offshore and unregulated sportsbook and casino operator, has ceased operations in Michigan and Colorado. This decision comes after the respective gaming regulators in both states issued legal notices to the parent company, Harp Media B.V., demanding the cessation of its activities.

Regulatory Actions in Michigan and Colorado

The Michigan Gaming Control Board (MGCB) sent a cease-and-desist letter to Bovada on May 29. The board gave Harp Media B.V., based in Willemstad, Curaçao, 14 days to stop Michigan residents from accessing their gambling services or face legal repercussions. 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. The board warned that operating unlicensed gambling services in the state could result in imprisonment of up to 10 years or a fine of up to $100,000, or both.

Colorado followed suit shortly after Michigan. Although the exact date of Colorado’s notice is not specified, 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. Bovada has complied with direct orders from state regulators to cease operations in these states, but it remains illegal across the entire United States under the 2006 Unlawful Internet Gaming Enforcement Act. The offshore operator only exits state markets when explicitly instructed by regulatory authorities.

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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 to see Bovada’s 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. The commission is aware of the enforcement actions taken by Michigan and Colorado, and Commissioner Nakisha Skinner proposed a formal assessment to determine the necessary steps. MGC Chair Jordan Maynard agreed, indicating that the matter could soon be on the agenda for a public meeting.

Chris Cylke, Senior Vice President of Government Relations for the American Gaming Association, stated: “Successful enforcement actions against Bovada by Michigan and Colorado are proof that states have tools to fight back against offshore operators and should serve as blueprints for other states to follow. But states should not have to take on this battle alone – the DOJ [Department of Justice]

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must also use its powers to aid the fight against illegal gambling, which Congress has clearly identified as a department priority.”

Source:

Bovada now restricted in Michigan and Colorado after cease-and-desists, sbcamericas.com June 21, 2024.

Bovada Colorado Exits Michigan Regulatory Warnings
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