The recent phenomenon of an offshore sportsbook exiting onshore markets is not just a U.S. thing.
Online sports betting and casino gambling site Bodog is telling customers in the Canadian province of Nova Scotia that it no longer offers services in the jurisdiction and will close accounts permanently as of Oct. 3.
"Decisions like this are made on a province-by-province basis and are never easy, nor made lightly, particularly when it affects loyal players like you," a recent email to Nova Scotia users said.
Offshore sportsbook Bodog is telling customers that it is exiting the Canadian province of Nova Scotia in early October. Adds "we'll be monitoring your province for regulatory changes."
— Geoff Zochodne (@GeoffZochodne) September 24, 2024
The only operator that is regulated locally in NS is Atlantic Lottery Corp.'s PRO•LINE. pic.twitter.com/FE8fni0s53
The email also directed customers to options to withdraw their balance "at any time," but added that players can't deposit any longer. Any futures scheduled to result after Oct. 2 have been voided, the operator said, and the amounts refunded to customers. All other wagers are to be settled on Oct. 2 as well.
"As our time together draws to a close, we'd like to thank you for playing with Bodog, and to assure you that we'll be monitoring your province for regulatory changes," the message said.
Bodog's website now states that it is no longer accepting players from Nova Scotia and Quebec, which was already subject to restrictions.
"We would like to inform you that, in accordance with the recent restrictions and regulations, we will no longer be providing our services in province of Quebec and Nova Scotia," Bodog customer service told Covers in an email. "This decision was not made lightly, but we are committed to ensuring compliance with all local guidelines."
What changed?
What prompted the decision was not immediately clear.
However, Bodog’s exit from Nova Scotia follows recent departures by offshore sportsbook Bovada from several U.S. states following cease-and-desist letters from regulators. Bovada now restricts access from more than 12 U.S. states and the District of Columbia.
Whether or not Bodog has received the same sort of correspondence as Bovada remains to be seen. Nevertheless, while Bodog is regulated in Antigua and Barbuda and Bovada in Curaçao, they have history.
Canadian Calvin Ayre founded Bodog in 1994. Olympic gold medalist Alwyn Morris then says he acquired the business and "licensing rights to the Bodog Brand" in 2006 after establishing an entity known as the Morris Mohawk Gaming Group (MMGG). The group said it possessed a gaming license in Kahnawá:ke, which is near Montreal in Quebec.
Ayre and three other Canadians were indicted in the U.S. in 2012 for, among other things, running an illegal sports betting business. The Bodog website domain name was seized as well. However, in 2017, U.S. authorities dropped the felony charges against Ayre, who pleaded guilty to a misdemeanor.
Bo knows
Meanwhile, the "Bodog Brand" announced in 2011 that it would withdraw from the U.S. In December of that year, Bodog Brand said U.S. residents would be blocked from using Bodog and that MMGG would no longer use the brand.
"We understand MMGG will now operate under its new brand, Bovada, at the following website: http://www.bovada.lv, such domain being given to MMGG pursuant to its rights on expiry of the licensing agreement," a press release said.
The biography on Morris' website says he launched Bovada in 2011 before selling it in 2017. Bovada now says a company called Harp Media B.V. runs the site, and it was to Harp that the Michigan Gaming Control Board and other regulators have sent cease-and-desist letters.
But Bodog and Bovada have been accused of maintaining ties. Notably, a class action lawsuit filed in Kentucky last year alleged that Bodog listed Bovada as a site within the "Bodog Network" and that Bodog redirected users in the state toward Bovada. The suit's claims have not been proven in court.
Grey be gone
Canada, like the U.S., has long had a “grey” or “black” market for online gambling wherein entities that could be regulated offshore or abroad, but not by provincial authorities, take action from locals. And, like in the U.S., there is an effort afoot to crack down on unregulated attempts to offer sports betting in Canada.
Covers contacted representatives of the Atlantic Lottery Corporation (ALC) after business hours on Monday night, asking if the government-owned entity had sent any cease-and-desist letters to Bodog. No responses were received before this story was published Tuesday morning.
The ALC was established by four provincial governments, including Nova Scotia. The company also runs the only locally regulated sportsbook in Atlantic Canada under the PRO•LINE brand.
What’s more, the ALC and Loto-Québec are members of the Canadian Lottery Coalition, a group of government-owned entities that banded together in 2022 to push back against offshore and unregulated gaming sites doing business in Canada.
“They want to help find solutions for problems created by illegal online gambling in Canada that include recurring annual tax revenue losses, increased threats of player harm and potentially even financial crime,” said Will Hill, the coalition's executive director, during a Canadian Senate hearing in June.
ALC 'encouraged'
Atlantic Lottery weighed in Tuesday evening with a statement from Patrick Daigle, its president and CEO, who noted that his company "is the only legal and government-regulated provider of online gambling and sports-betting products in Atlantic Canada."
Daigle added that an estimated $200 million is flowing out of Canada's four Atlantic provinces annually via "illegal and unregulated gambling websites," money that could help local governments fund public services.
"That number is troubling and a growing concern for the people who live in our region," Daigle said. "These illegal operators are motivated by profit and do not place the same priority on responsible gambling as Atlantic Lottery, nor do they return profits or taxes to Atlantic Canadian provinces."
"Lack of public awareness of the legalities has lent an air of legitimacy to these operators and misleads the public, so we are encouraged to hear that Bodog will be ceasing illegal operations in Nova Scotia."
