Michigan has run out of patience with Bovada.
The Michigan Gaming Control Board (MGCB) announced on Thursday that it sent a cease-and-desist letter the day before to Curaçao-based Harp Media B.V., a company that operates Bovada, an online sports betting and casino gambling brand.
Bovada is accessible in Michigan, the MGCB said, but the offshore operator lacks the permits needed in the state to offer online gambling.
The regulator alleges Harp Media is violating the state’s gaming laws, including the Lawful Internet Gaming Act and Michigan Gaming Control and Revenue Act, which require companies to be licensed to offer iGaming.
Harp Media has 14 days from receipt of the cease-and-desist letter “to take steps to prevent Michigan residents from gambling on their websites,” the MGCB said. A failure to do so, it added, will prompt the regulator to take legal action.
“The proliferation of online gaming platforms has led to increased scrutiny from regulatory bodies worldwide, and this action serves as a stern warning to overseas companies that flouting local regulations will not be tolerated,” MGCB executive director Henry Williams said in a press release. “The MGCB remains steadfast in its commitment to upholding Michigan’s laws and regulations and will continue to actively monitor and enforce compliance within the state to ensure a fair and secure gaming environment for all.”
! The Michigan Gaming Control Board just announced it has issued a cease-and-desist letter to Bovada, which it accuses of "operating illegal online gaming sites" available to residents in the state. pic.twitter.com/u0UG6A5dv0
— Geoff Zochodne (@GeoffZochodne) May 30, 2024
The move by the regulator of Michigan sports betting and iGaming is in keeping with its more vocal approach to offshore and illegal gambling operations.
Brandt Iden, a former Michigan politician and the current vice president of government affairs for Fanatics Betting and Gaming, posted on X that Michigan is "a leader in the online gaming industry and today showcases that leadership."
It’s indeed not the first cease-and-desist letter the MGCB has sent.
In January, the regulator sent cease-and-desists to three other online gambling companies, including one tied to Stake, for violations such as offering iGaming in the state without a license. The MGCB said all three companies had taken steps to stop Michigan residents from gambling on their sites.
@migovernment is a leader in the online gaming industry & today showcases that leadership. TY @MichiganGCB & Director Williams for working to protect consumers from unregulated operators who prey on the state’s citizens! Keep up the excellent work!! @AmericanGaming #sportsbetting
— Brandt Iden (@BrandtIden) May 30, 2024
Moreover, in announcing Williams' third anniversary as executive director earlier this week, the MGCB said it is “working to address the increase in offshore sportsbooks and online casinos that illegally operate stateside — and that continue to pose a threat to citizens and the legal, regulated U.S. gaming market.”
Thursday’s news looks to be part of that work, with Bovada the target.
The offshore bookmaker has long been a rival to U.S.-regulated operators, and the legal gambling industry has long had Bovada in its crosshairs.
In April 2022, the American Gaming Association (AGA) called for a crackdown on illegal online sportsbooks and casinos in a letter to U.S. Attorney General Merrick Garland. The letter named Bovada, as well as MyBookie and BetOnline, as being part of a “vast illegal sports betting market” that exists via offshore websites.
“Nationwide internet searches for offshore sportsbook brands increased 38% last year, faster than the search growth for legal U.S. operators, and searches for offshore brands represented a majority of all sportsbook searches,” AGA President Bill Miller wrote. “Bovada alone accounts for 50% of all searches.”
Bovada has shown it is willing to back away from certain states with strong gaming regulators. While it is widely accessible in the U.S., it is not open for business in Nevada, New Jersey, New York, Maryland, and Delaware.
