State Gaming Regulators Taking “Wait-and-See” Approach to Bovada

Jan 7, 2024; Detroit, Michigan, USA; Detroit Lions wide receiver Kalif Raymond (11) runs up the sidelines after catching a pass against the Minnesota Vikings quarterback in the first quarter at Ford Field. Mandatory Credit: Lon Horwedel-USA TODAY Sports

• Sports betting regulators from several states are keeping a close eye on Michigan’s attempt to ban Bovada
• West Virginia regulators are investigating several companies, but did not reveal specifics
• The Michigan Gaming Control Board recently sent a cease-and-desist letter to the offshore sportsbook/online casino

Several states are keeping a careful eye on the Michigan Gaming Control Board’s attempts to ban Bovada before taking action on the offshore casino and sportsbook.

The Michigan Gaming Control Board (MGCB) announced on May 30 it issued a cease-and-desist letter to Harp Media B.V., which operates the the offshore and unlicensed online sportsbook Bovada.

Bovada previously left Nevada, Delaware, Maryland, New Jersey, and New York , but has yet to make a determination on Michigan.

What Will Happen in Michigan?

Michigan’s cease-and-desist letter to Bovada is unexplored territory, as any potential enforcement is bogged down by the fact that Harp Media B.V. is located in Curaçao. Bovada operates as an unlicensed and illegal sportsbook and casino in the majority of states throughout the country.

The gaming control board has given Harp Media B.V. 14-days from the receipt of the letter to prevent Michigan residents from gambling on their websites. However, it’s unknown if Bovada will adhere to the order and leave the state.

The gaming control board claims Harp Media B.V. is in violation of several Michigan gaming laws:

• Lawful Internet Gaming Act: States internet gaming may only be offered by a licensed internet gaming operator
• Michigan Gaming Control and Revenue Act: Prohibits a party from conducting a gambling operations without a licensed issued by the MGCB. Parties operating unlicensed gambling operations in the state may face imprisonment for up to 10 years or a fine up to $100,000 or both
• Michigan Penal Code: Broadly prohibits any form of gambling, which generally involves the elements of consideration, prize, and chance. Such as, accepting money, or anything of value, with the understanding that money, or anything of value, will be paid to any person based on the outcome of an uncertain event is prohibited

Bovada has yet to respond to the cease-and-desist letter.

West Virginia Lottery Investigating Several Companies

While several state regulators are evaluating the outcome in Michigan before deciding on any potential action themselves, West Virginia Lottery Commission regulators told Sports Betting Dime the body is currently investigating a number of gaming companies that may be operating illegally in the state.

John A. Myers, director of the West Virginia Lottery, explained that he could not give specific details as to which companies the commission is currently investigating, but will take action if these operators are found to be in violation of state law.

“Due to the nature of the investigations, I am not at liberty to say which companies we are actively investigating, but I will assure you that there are a number of them under review. Should an investigation find that any company is in violation of West Virginia law, we will certainly proceed with sending the cease-and-desist letter,” he said.

Bovada is currently accessible in West Virginia.

Gaming, Sports Betting Regulators Watching Michigan

But what exactly can the Michigan Gaming Control Board do to an offshore company? James Bain, an enforcement attorney for the Kansas Racing and Gaming Commission, explained that the Michigan board  may not be able to easily enforce its cease-and-desist, but Kansas regulators will be closely evaluating the outcome.

“Right now we are taking a wait and see approach. As you can imagine gaining jurisdiction over a foreign entity and putting teeth into any cease-and-desist letter faces several hurdles. Of course, Bovada is not the only foreign online casino operating illegally in the U.S. We will definitely be watching to see if any novel legal theories arise from Michigan,” he said.

Doug Harbach, communications director for the Pennsylvania Gaming Control Board, said the state gaming board is aware of Michigan’s actions. However, he noted the Pennsylvania Gaming Control Board only has regulatory authority over entities who are legally licensed in the state and does not have law enforcement power.

Harbach urged Pennsylvania gamers to visit organizations such as BettorSafe to determine which gaming operators in the state are safe and regulated.

“With that in mind, we are monitoring the situation and will take all appropriate action within our authority to combat illegal gambling,” he said.

Both North Carolina and Maine regulators are also keeping an eye on the proceedings. Milton Champion, executive director of the Department of Public Safety Gambling Control Unit, said the state is “looking into the matter as a result of Michigan’s position.”

North Carolina Lottery Communications Director Van Denton explained state regulators are focusing their energies on post-launch functions. The state launched sports betting in March.

“The commission is aware of the action taken by the Michigan Gaming Control Board last week and is monitoring this developing situation along with the situation in other states with legalized sports betting markets. The commission is currently focusing its energy on post-launch functions and will continue to monitor enforcement actions and determine the appropriate enforcement actions to take with our partner agencies as our sports betting market matures,” he said.

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