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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Norway’s Gambling Authority founded in 2001 to supervise the administration and oversight of gaming controlled by the state and private, Lottstift, has stated that it will take a zero-tolerance approach to social media platforms promoting live streams and content revolving around online gambling.

The country has imposed a total blackout on gambling advertising. According to the Broadcasting Act, operators are not allowed to use any gambling advertising to promote their services. 

The action is exclusively reserved for Norway’s state-owned monopolies Rikstoto, with a focus on racing and Norsk Tipping, which offers betting and lottery options.

Schell.com, the popular platform that generates entertaining content via daily live streams, vlogs, and competitions, has recently broadcast a number of Norwegian influencers advertising online casino games, thus disregarding the current legislation. 

The streams that were deemed illegal were promoted on the schell.com portal and recorded on a series of live-streaming platforms like YouTube, Twitch, and Kick.

The respective broadcasting platforms were sent reminders regarding the country’s Broadcasting Act which does not allow gambling promotion unless it involves one of the two available monopolies. 

In accordance with its freshly granted powers by the revised Money Gambling Act, Lottstift has asked Tiergarten Marketing Ltd, Schpell.com’s operator, to cease all of its marketing activities in the country.

Two Cease-and-Desist Warnings Issued by Lottstift

The regulatory body also sent two separate cease-and-desist written notices to Baris Entertainment AS and Viken Underholdning AS for having alleged relationships with social media influencers advertising illegal gambling offers.

The infringing businesses were given until February 20 to fully comply with the issued order to stop promoting unlicensed gambling activities. 

In case they fail to comply, the companies will face possible compulsory fines and non-compliance violation fees.

More Inspections to Follow

Lottstift has also ordered social media platforms to be more careful with their Norwegian influencer content to make sure they follow the country’s current advertising regulations.

The body’s director, Monica Alisøy Kjelsnes, stated that it was obvious that the respective live streams hosting influencers were targeting a young audience while marketing the offerings of unlicensed casinos.

Kjelsnes added that Schpell employs Norwegian influencers and that “much of their marketing takes place in Norway and is aimed at Norwegian consumers.”

The director also explained that while the biggest influencers stopped promoting gambling outside the law there are still some “who are teetering on the edge of breaking the law.”

In this regard, the authority plans on further monitoring and evaluating more inspections in the future. 
Last December, Brazil advanced a similar measure against social media influencers advertising unregulated forms of gambling.

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JenningsBet, an independent British betting operator, has weighed on the statutory levy discussions, saying that the measure would have adverse effects. According to the company, a mandatory levy would result in closed shops and mass layoffs.

For reference, the statutory levy is a much-discussed measure outlined in the United Kingdom’s Gambling Act white paper. The levy would replace the current voluntary system whereby gambling operators across the country make voluntary donations for gambling research, education and treatment.

Under the mandatory levy, all online operators will have to provide 1% of their annual revenue for such initiatives, while land-based companies will pay only 0.4% because of the higher costs associated with retail operations. This move, according to its proponents, will provide treatment organizations with the funding they need to improve their services and efficiency.

However, opponents of the measure say that it may cause more harm than good. JenningsBet, for one, is not happy with the changes.

JenningsBet Warns of Shop Closures

Vicky Knight, JenningsBet’s head of safer gambling, addressed the matter in a Betting and Gaming Council blog post, saying that the new moves might actually hinder the industry’s ability to help those in need.

According to Knight, JenningsBet has dutifully paid the voluntary levy for two decades and is proud to have supported many excellent charities. However, she argues that the 0.4% levy on retail operators is disproportional and would lead to layoffs and closed shops.

That would be devastating for operators like us, which are the beating heart of many hard-pressed high streets, offering community to customers, and bringing in much-needed investment both locally and nationally.

Vicky Knight, head of safer gambling, JenningsBet

Knight pointed out that the retail sector has already been negatively affected by the COVID pandemic and the recent economic hurdles, causing the closure of dozens of shops and businesses. In just five years, 43% of the small betting businesses have died out, she pointed out.

She added that Family Entertainment Centers in the UK are exempt from the new rules and will only have to pay 0.1% despite having similar operating costs. Knight also mentioned the National Lottery, which has only contributed 0.01% of its gross gaming yield toward the levy over the past three years.

If all independent bookies are unfairly targeted with a higher levy than our peers, it will inevitably push some shops into unprofitability. That will mean further closures and job losses.

Vicky Knight, head of safer gambling, JenningsBet

Knight concluded that her team wants to pay its fair share, as it has done for two decades now. However, she hopes that the government will keep the independent bookmakers in mind when implementing the reforms.

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The Dutch gaming regulator, Kansspelautoriteit (KSA), has issued stern warnings to several gambling operators for flouting the country’s recent restrictions on untargeted gambling advertisements in August. 

KSA Issues Warnings Instead of Fines for Gambling Ad Violations

The crackdown came in response to multiple reports received by the KSA, revealing that various online gambling providers were still displaying advertisements on public billboards and bus shelters in violation of the new regulations.

Rather than immediately imposing fines, the KSA had initially informed these operators about the updated advertising guidelines, urging them not to push the boundaries of the law. It was made clear that any blatant infringements would result in enforcement actions. Once alerted to the violations, the KSA promptly contacted the concerned gambling providers. Following their prompt and cooperative responses, the regulator decided to issue warnings instead of pursuing penalties.

The affected advertisements ceased to appear following the KSA’s interventions, thus resolving the issue without the need for fines.

As the Dutch authorities continue to enforce these advertising restrictions, the KSA remains vigilant, aiming to create a gambling environment that safeguards vulnerable individuals and upholds the new rules governing untargeted gambling advertisements in the Netherlands.

KSA Introduced Rigorous Rules for Dutch Gambling Ads

The Dutch ban on untargeted gambling advertisements stipulates that such promotions are not permitted in public spaces or areas accessible to the public. This restriction extends to billboards, bus shelters, cinemas, arcades, and casinos. Furthermore, advertising on television and radio is strictly prohibited under the new regulations.

Nevertheless, the rules do allow gambling operators to advertise under rigorous conditions via various platforms, including the Internet, direct mail, and social media. However, these advertisements must adhere to strict age-related targeting requirements, with the goal of reaching an audience where at least 95% of viewers are over the age of 24. Sponsorships are also affected, with transitional periods for existing contracts.

Prior to the ban’s implementation, the KSA had adopted a somewhat hands-off approach, preferring to provide limited guidance and encouraging operators to take the lead in complying with the new rules. In anticipation of the ban, the Dutch gambling industry had also created a new set of self-regulation guidelines, known as the advertising code for online games of chance, to align their practices with the impending regulations.

Rene Jansen, Chairman of the Netherlands Gambling Authority (KSA), discussed upcoming changes in gambling regulation at a gaming conference in June. He emphasized the importance of data vault systems (CDBs) for Anti-Money Laundering compliance and highlighted that the new advertising regulations allow land-based operators to continue advertising their land-based offerings but, if they are also operational online, their ads must be notably different from online ads.

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