Massachusetts Mulls Actions Against Bovada and Offshore Sportsbooks

With the North America Gaming Regulators Association (NAGRA) gathering in Charleston, South Carolina, news about Michigan’s recent cease and desist letter targeting offshore sportsbook operator Bovada is swiftly circulating.

Amidst speculation that Connecticut might soon follow Michigan’s lead, other regulatory bodies are beginning to explore whether they can implement similar measures to combat the black market in online sports betting.

During a Massachusetts Gaming Commission planning meeting on Wednesday, Commissioner Nakisha Skinner brought this issue to the forefront, suggesting that the five commissioners should consider it for an discussion.

“I wonder just with the discussion around the cease and desist letter that Michigan has spearheaded and Connecticut, I learned this morning, has signed on, I wonder if it is worthwhile to discuss with the commissioners as to whether there are any steps we might want to take as a commission along those lines,” Skinner stated.

Skinner emphasized that, as the regulatory authority, there are limitations to what the commissioners can achieve, noting that their “hands are somewhat tied.”

Discussion on Regulatory Actions

Michigan’s letter was issued by the Michigan Gaming Control Board (MGCB), which has been collaborating closely with state Attorney General Dana Nessel to address unregulated gaming activities. The anticipated Connecticut letter is expected to come from the Connecticut Department of Consumer Protection Gaming Division.

The MGCB’s action targeted Harp Media B.V., the company behind Bovada.com and Bovada.lv, based in Curaçao. Following a thorough investigation, the MGCB issued a cease-and-desist letter on May 29, highlighting violations of multiple Michigan gaming laws, including the Lawful Internet Gaming Act and the Michigan Gaming Control and Revenue Act. The letter mandates that Bovada must prevent Michigan residents from accessing its websites within 14 days or face legal action.

Skinner suggested that issuing a cease and desist letter is not the only method available for regulatory influence. She proposed that the state might consider following the example of other jurisdictions by holding vendors able and ensuring they do not collaborate with any offshore gaming operations.

Exploring Enforcement Options

Interim Chairman Jordan Maynard, who is also attending the NAGRA conference alongside Skinner, concurred that this issue warrants a thorough discussion. Consequently, it will likely appear on the agenda for a Massachusetts Gaming Commission meeting soon.

This move by Massachusetts regulators reflects a growing trend among state gaming commissions to take a stronger stance against offshore sportsbooks. Regulatory bodies’ collaborative efforts across different states aim to protect the legal gaming market and ensure fair play.

The crackdown on illegal operators has been a significant focus for regulated gaming bodies and industry stakeholders. Michigan’s recent actions against Bovada and other unlicensed operators highlight a broader effort to maintain a fair and secure gaming environment. The American Gaming Association and major sports leagues, including the NFL, have called for stringent actions against black market operators.

As the landscape of online sports betting continues to evolve, regulators are increasingly recognizing the importance of a united front in tackling unlicensed and offshore operators. The steps taken by Michigan and Connecticut could serve as a model for other states looking to strengthen their regulatory frameworks.

Curaçao, home to Bovada’s operations, is also undergoing a regulatory overhaul with the introduction of the National Ordinance for Games of Chance (LOK). This new legislation aims to replace the outdated National Ordinance on Offshore Games of Hazard (NOOGH) and strengthen anti-money laundering (AML) rules. Curaçao’s finance minister, Javier Silvania, has emphasized that the LOK will act as a “safety net” against grey-listing by the Financial Action Task Force (FATF), highlighting global efforts to tighten gaming regulations.

The Massachusetts Gaming Commission’s forthcoming discussions will be closely watched by industry stakeholders and other regulatory agencies. The potential actions discussed could shape future enforcement strategies against offshore sportsbooks and further solidify the regulatory environment for legal sports betting in the United States.

Source:

“Massachusetts Regulators Discuss Steps Against Offshore Sportsbooks”, SBC Americas, June 12, 2024.