Despite having already been slapped with bans in five US states (Delaware, New Jersey, New York, Maryland, and Nevada), Bovada, one of the most prominent black-market sports betting operators in the US, continues to be a big player in the illegal sports betting market.
The platform is currently under fire from Michigan and Connecticut regulators who are striving to clamp down on the offshore operator’s activities from their markets and end its tenure in the two states.
MGCB Sent a Cease-and-Desist Letter to Bovada
On May 29, the Michigan Gaming Control Board (MGCB) initiated a name-and-shame campaign when they sent a cease-and-desist letter to the Curacao-based operator.
In the letter, the MGCB argued that Bovada violated the Lawful Internet Gaming Act, as well as the Michigan Gaming Control and Revenue Act and several parts of the state’s Michigan penal code.
Provided the operator fails to comply with the regulator’s request to stop operations, they will be taken to court.
Fanatics Sportsbook’s head of government affairs, Brandt Iden, explained Bovada was sent the clear message to exit the state because they’re “ruining it for regulated customers”, showing the state’s determination to “do something about it”.
Bovada was given 14 days from the date of the receipt of the letter to stop accepting wagers from people based in Michigan.
It remains unknown when Bovada received the letter, which means it is unclear whether the two-week term has expired or not. Nonetheless, it seems that the two parties might be getting ready for a showdown.
As of June 17, the operator was still accessible in The Great Lakes State, 19 days after the cease-and-desist letter was issued to them.
The CDCP Could Follow Suit
Two weeks after state regulators in Michigan sent the letter, the Gaming Division of the Connecticut Department of Consumer Protection (CDCP) announced their similar plans to send the same letter within a few days.
According to the Department of Consumer Protection’s sports betting division, they can send such letters anytime they “receive a consumer complaint or become aware of an illegal gaming operator”.
B Global‘s Brendan Bussmann explained the cease-and-desist letter was only the first step of the process, “and then how far can you prosecute along the way to protect against illegal operators is next”.
Bussmann added that “the feds” would also need to “come into play” as the operation should be a “coordinated effort.”
Legal Solutions at Hand
According to global gambling law expert Michael Lipton, the MGCB has several legal options to use against the offshore company based on an island in the Caribbean.
One of them would be to “run the full gamut of sealed indictments”. Another option would be to seize the operator’s websites and funds, if available in the jurisdiction, and even “go after third-party facilitators”.
The law expert added that while governments can use several tools, “they may be hesitant, in many cases, to pursue every one of them unless they’re certain that they’re going to result in something of a positive nature.”
According to MGCB’s public information officer, Lisa Keith, in case Bovada keeps providing illegal gambling to the people of Michigan, the agency is “prepared to take further legal action, the details of which we have no comment on at this time.”
The MGCB is also using several measures to make sure licensed vendors and suppliers are not collaborating with illegal operators or working on illegal markets. Earlier this month, the agency sent a letter to online game content providers, asking them to fill out an Illegal Gaming Attestation form.
According to Bussmann, the form would prove regulators’ “level of seriousness” to guarantee “everyone who is operating in this market, not just operators but suppliers of content, is not working in illegal markets or with illegal operators”.
The Federal Crackdown Solution
While all 50 US states are allowed to attempt to remove illegal operators from their borders, this translates to 50 different state regulators looking to take legal action against hundreds of companies offering illegal wagering.
The cost of this type of redundant action would be huge, which is where the logic of relying on the federal government which has more resources than just one US state comes into the picture.
A federal crackdown would lead to the simultaneous removal of illegal operators from all US jurisdictions.
Plus, black market operators are not solely limited to online wagering platforms, as there are plenty of vendors, suppliers, and affiliates skirting the law.
As Bussmann further explained, “It’s the whole ecosystem across the board”, which means even affiliates and mainstream media promoting presidential odds are advertising the black market.
