Bovada Halts Operations in Ohio Following Cease-and-Desist Order

In a continued crackdown on offshore gambling operations, Bovada, one of the most well-known offshore betting platforms, has now ceased operations in Ohio. This move comes on the heels of a cease-and-desist letter issued by the Ohio Casino Control Commission (OCCC) earlier this month, signaling a growing trend of states taking action against illegal operators.

A Growing List of States Taking Action

Ohio’s addition to Bovada’s list of restricted states marks a significant development, as the total number of states where Bovada no longer accepts customers now nears a dozen. This action follows similar steps taken by other states, reflecting a broader effort to curb illegal offshore gambling.

The wave of cease-and-desist orders against Bovada began earlier this year, with Michigan and Colorado leading the charge. Both states issued cease-and-desist letters in May, prompting Bovada to block s from accessing its services within those states. This move was quickly followed by similar actions from Connecticut and Washington D.C. in July, as they too sought to clamp down on the unregulated offshore market.

The states where Bovada has ceased operations now include:

• Colorado
• Connecticut
• Delaware
• Maryland
• Michigan
• Nevada
• New Jersey
• New York
• Ohio
• Washington, D.C.
• West Virginia

With Ohio ing this list, three of the ten most populous states in the United States have effectively pushed Bovada out of their markets. This development raises questions about which states might be next to take similar action.

Massachusetts May Be Next to Target Offshore Operators

Massachusetts could soon be the next state to target offshore operators like Bovada. During the recent National Council of Legislators from Gaming States (NCLGS) summer meeting, the issue of offshore gambling was a prominent topic of discussion. Regulators and operators exchanged strategies for addressing the offshore market, and Massachusetts regulators indicated they might consider following the lead of other states in the near future.

The ongoing discussions at the NCLGS meeting highlight the growing concern among state regulators about the impact of offshore operators on the legal gambling market. As more states legalize and regulate sports betting, there is increasing pressure to protect the integrity of the market by cracking down on unlicensed operators.

While individual states have been taking the lead in addressing offshore gambling, there are growing calls for federal intervention. The American Gaming Association (AGA) has been vocal in its appeals to national lawmakers, urging them to address the issue on a broader scale.

Last year, Jonathan Nabavi, NFL Vice President of Public Policy and Government Affairs, echoed this sentiment in a letter to Representative Dina Titus. Nabavi stated, “Congress and the federal government have a unique role to play in bringing enforcement actions against illegal operators.” This statement underscores the need for a coordinated effort at the federal level to tackle the pervasive issue of illegal offshore gambling.

The AGA has been a strong advocate for stricter enforcement against offshore operators, arguing that they pose a significant threat to the regulated market. By operating outside the law, these operators can offer products without adhering to the stringent regulations that licensed operators must follow, giving them an unfair advantage.

The Impact on Bovada and the Offshore Market

The growing number of states taking action against Bovada could have a significant impact on the offshore gambling market. Bovada has long been one of the most prominent offshore operators in the United States, but as more states move to restrict its operations, its reach and influence could diminish.

For Bovada, the loss of access to states like Ohio, Michigan, and Colorado represents a major setback. These states are home to large populations of potential customers, and being shut out of these markets could significantly impact the company’s revenue.

Furthermore, the increasing pressure from state regulators could force Bovada to reconsider its business model or even exit the U.S. market altogether. While offshore operators have traditionally operated with relative impunity, the growing coordination among state regulators and the potential for federal involvement could change the landscape dramatically.

As the crackdown on offshore gambling continues, it remains to be seen how other states will respond. The trend suggests that more states could follow Ohio’s lead, further isolating Bovada and other similar operators. Additionally, the push for federal intervention could bring about more comprehensive enforcement actions, potentially leading to a significant reduction in the prevalence of offshore gambling in the United States.

For now, Bovada’s exit from Ohio is a clear indication that the tide is turning against offshore operators. As more states take action, the days of unchecked offshore gambling in the U.S. may be numbered.

Source:

”Ohio s growing list of states Bovada cutting ties with”, sbcamericas.com, August 21, 2024.