Bovada Faces Expanded Restrictions in Connecticut and Washington D.C.

In recent months, Bovada, a prominent offshore gaming operator, has faced mounting regulatory pressure across the United States. As of July 29, 2024, the list of states restricting access to Bovada has grown to include Connecticut and Washington D.C., adding to a growing roster of jurisdictions where the operator is now prohibited.

Connecticut Takes Action

Connecticut’s recent move against Bovada was significant. The state issued a cease-and-desist order to Harp Media B.V., Bovada’s parent company based in Curaçao, several weeks prior. The order came after state authorities determined that Bovada was operating in violation of Connecticut General Statutes and the Connecticut Unfair Trade Practices Act (CUTPA). This action reflects Connecticut’s devotion to enforcing local gambling laws and ensuring that all operators adhere to state regulations.

Adding to the list of restricted areas, Washington D.C. has now ed the ranks of jurisdictions where Bovada is no longer welcome. Although there was no prior report of a formal shutdown order from the district, the recent changes in D.C.’s commercial gaming market have played a role. With the arrival of major players like BetMGM, Caesars, and DraftKings into D.C.’s online sports betting landscape, the district’s regulatory environment has become more competitive and regulated. This shift has led to Bovada’s inclusion in the restricted states list.

The situation with Bovada is not isolated. Over the past year, several states have taken action against the operator. Michigan was the first to initiate a regulatory crackdown, issuing a cease-and-desist letter in May 2024. Colorado followed suit in June with a similar directive. These states have since observed Bovada’s withdrawal from their markets.

West Virginia ed the list of restricted states shortly thereafter. On June 26, 2024, the West Virginia Lottery sent a notice to Harp Media, highlighting Bovada’s non-compliance with state laws. Despite being given a 14-day window to rectify the situation, Bovada missed the deadline, leading to its addition to West Virginia’s restricted list as of July 16, 2024.

Potential for Further Restrictions

The list of states curbing Bovada’s operations may not be final. The Massachusetts Gaming Commission has publicly considered taking action against Bovada, indicating that a cease-and-desist letter might be on the horizon. The commission is also contemplating a formal review to assess whether additional regulatory steps are necessary.

The growing number of restrictions on Bovada highlights a broader trend in the U.S. gambling industry. As states increasingly enforce regulations on online gambling, operators like Bovada face significant hurdles. The aim of these regulations is to ensure that online gaming activities are conducted fairly and legally, protecting consumers and ensuring that local laws are upheld.

For Bovada, these restrictions represent a substantial challenge. The operator, known for its offshore presence, must navigate a complex web of state regulations as it seeks to maintain its foothold in the U.S. market. The regulatory actions underscore the importance of compliance for international gaming operators and the need to adapt to the evolving legal landscape in the U.S.

As the regulatory environment continues to evolve, Bovada and other offshore operators will need to stay attuned to changes in state laws and regulations. The expanding list of restricted states indicates a growing scrutiny on offshore gaming activities and a heightened focus on ensuring that operators meet local legal requirements.

Source:

”Bovada no-go list grows as s in Connecticut, DC restricted”, sbcamericas.com, July 29, 2024.