Arizona Issues Cease-and-Desist Order to Bovada Over Illegal Gambling Operations

The Arizona Department of Gaming (ADG) has intensified its efforts to combat illegal gambling by issuing a cease-and-desist letter to Bovada, a prominent offshore sports betting operator. The letter, sent on November 8 and announced on Tuesday, accuses Bovada of violating multiple Arizona laws, including felony charges for promoting gambling, unlawful enterprise control, and money laundering.

ADG Director Jackie Johnson emphasized the state’s dedication to enforcing gaming laws and safeguarding its citizens. She stated, “Arizona will not be a safe haven for unlicensed or unlawful gaming, nor will we allow unlawful entities to compromise the integrity of gaming within our state.”

The ADG’s action underscores its commitment to protecting Arizona’s regulated gambling environment from illegal operators that undermine the industry’s integrity and consumer protections.

Bovada Expands Restricted List

Following the receipt of Arizona’s cease-and-desist letter, Bovada added the state to its growing list of restricted jurisdictions. The operator now prohibits access to its platform in 16 U.S. states and the District of Columbia.

Many of these restrictions were implemented after similar enforcement actions in states such as Michigan, Massachusetts.

Michigan initiated this trend earlier in the year, prompting a domino effect of regulatory actions across other states. Bovada has generally complied by restricting access in states that have issued legal orders, although some jurisdictions, like Tennessee, have gone further by imposing fines for noncompliance. Tennessee recently fined Bovada $50,000 after the operator failed to respond to multiple cease-and-desist directives.

In the absence of comprehensive federal regulations on online gambling, states are left to navigate enforcement independently, often with limited resources. Offshore operators like Bovada exploit these limitations, continuing operations until specific legal actions are taken.

Recognizing the broader challenges posed by illegal gambling, several states have called on the U.S. Department of Justice (DOJ) to address the issue on a national scale. In 2022, American Gaming Association CEO Bill Miller urged the DOJ to crack down on unregulated offshore gambling sites. The DOJ has acknowledged its ongoing efforts, citing investigations conducted by the Federal Bureau of Investigation. However, the lack of uniform federal gaming laws complicates enforcement, leaving states to address these issues piecemeal.

Arizona’s Proactive Approach

Arizona’s decision to act against Bovada reflects its proactive stance in managing the rapidly evolving online gaming landscape. Since legalizing sports betting in September 2021, the state has focused on building a regulated gambling market that prioritizes consumer safety and fair play.

The ADG has also warned residents to gamble only on authorized platforms, which provide safeguards against fraud and ensure compliance with state laws. Additionally, the department cautioned against scams involving individuals falsely claiming to represent legitimate gaming organizations.

Arizona’s enforcement action against Bovada demonstrates the state’s commitment to maintaining a lawful and regulated gaming environment. By taking decisive steps to address illegal operators, Arizona aims to protect its residents and uphold the integrity of its gambling industry.

Source:

”Arizona latest state to tell Bovada to get out of Dodge”, sbcamericas.com, December 04, 2024.