Bovada, 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.

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]

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.

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Kentucky has ignited a legal battle against Bovada’s gambling operations, alleging significant violations of state law. Plaintiff Billi Jo Woods spearheads the class action lawsuit, asserting that Bovada ran an illicit gambling service within the state, causing substantial financial losses for users.

The lawsuit casts a wide net, targeting not only Bovada but also Morris Mohawk Gaming Group, Alywin Morris, Calvin Ayre, and Harp Media BV. Renowned for its offshore sports betting and live online casino offerings, Bovada faces allegations of breaching federal law by conducting gambling services within the US.

Filed in the Eastern District of Kentucky, the lawsuit seeks class certification and aims to recoup damages exceeding $5 million. Central to the plaintiff’s case is a Kentucky gambling loss recovery statute from the 1800s, which enables individuals who suffered gambling losses to pursue compensation. In certain circumstances, Kentucky law permits the trebling of damages.

The complaint hinges on the assertion that Bovada transgressed Kentucky law and exploited thousands of bettors. The plaintiffs are not only seeking reimbursement for individual losses but also for the legal expenses incurred during the case. Leveraging federal diversity jurisdiction, the lawsuit can be resolved within federal courts despite its foundation in state law.

Kentucky resident Billi Jo Woods claims to have lost substantial sums gambling on Bovada’s platforms. Additionally, Morris Mohawk Gaming Group, based in Quebec’s Kahnawake Mohawk Territory, is accused of reaping significant profits from various internet domains linked to Bovada.

Bovada, a subsidiary of Bodog, a prominent offshore gambling entity, comes under scrutiny in this lawsuit. Calvin Ayre, a defendant in the case, founded the company, although he purportedly left the gambling sphere in 2009.

This lawsuit mirrors the prior settlement between Kentucky and PokerStars, which also invoked a loss recovery statute. The outcome of this case could reverberate across the accountability and legality landscape of offshore gambling operators, garnering substantial attention.

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