Bovada Says Sports Betting Business Closed in Colorado, Michigan

After being threatened with legal action for allegedly offering illegal online gambling, offshore sportsbook Bovada says it is no longer open for business in Colorado and Michigan.

“Bovada remains open to United States residents, except for those living in Nevada, New Jersey, New York, Maryland, Delaware, Michigan, and Colorad[o],” the FAQ section on the operator’s website stated as of Thursday evening. “Should you reside in a restricted state and still retain an account balance, please contact Customer Service for more information or to arrange a cryptocurrency withdrawal.”

Michigan and Colorado are new additions to that disclaimer by Bovada, which is run by Curaçao-based Harp Media B.V. The offshore sportsbook had already closed its digital doors to customers in Nevada, New Jersey, New York, Maryland, and Delaware. 

Knock it off… or else

Yet Bovada’s latest withdrawals come after the offshore gambling operator was warned to stop taking bets by regulators in Michigan and Colorado.

The Michigan Gaming Control Board (MGCB) announced on May 30 that it sent a cease-and-desist letter to the offshore sportsbook operator for allegedly offering unauthorized online gambling in the Wolverine State.

Without specifying what exactly it would do, the MGCB said Harp Media had 14 days from receipt of the letter to stop Michigan residents from gambling with Bovada or the regulator would take some sort of legal action. The MGCB later suggested it could pursue Bovada’s onshore suppliers if the operator didn’t knock it off.

A spokesperson for the MGCB said Thursday that the regulator “is encouraged to see” that Bovada has now listed Michigan as a restricted state on its website.

“While this is a good indication that they are taking our cease-and-desist letter seriously, we will continue to closely monitor the status of their offerings in Michigan and take appropriate action as deemed necessary,” MGCB Public Information Officer Lisa Keith said in an email.

Rocky Mountain bye

Michigan’s feelings toward Bovada were fairly public, but those of regulators in Colorado were less so. 

Nevertheless, a spokesperson for the Colorado Department of Revenue told Covers on Thursday that the state’s Division of Gaming sent a cease-and-desist letter to Bovada on June 7.

“The Division’s stance is that Bovada was offering gambling activity in Colorado that they are not licensed to offer,” Derek Kuhn said in an email.

Now, at least according to Bovada’s website, it no longer serves customers in both Colorado and Michigan.

Regulators in Connecticut and Massachusetts have also said they are sending or considering cease-and-desist letters of their own for Bovada. It’s possible even more states follow suit.

Connecticut’s Department of Consumer Protection sent its cease-and-desist letter to Bovada on June 14. In the letter, a copy of which was shared with Covers, the regulator said it “has become aware” that Bovada is “conducting unlicensed online gambling” in the New England state.

“The Department, therefore, orders Bovada to cease and desist advertising and offering its games and services to Connecticut customers,” the letter warns.

Onshore vs. offshore

The warnings by regulators highlight the ongoing interest in curbing the onshore activity of offshore sportsbook operators. 

At least some of the rationale for many states to legalize sports betting was to channel unregulated and illegal gambling into locally regulated outlets. The presence of Bovada and other offshore gambling sites could undermine that goal. 

“The proliferation of online gaming platforms has led to increased scrutiny from regulatory bodies worldwide, and this action serves as a stern warning to overseas companies that flouting local regulations will not be tolerated,” MGCB Executive Director Henry Williams said in a press release on May 30. “The MGCB remains steadfast in its commitment to upholding Michigan’s laws and regulations and will continue to actively monitor and enforce compliance within the state to ensure a fair and secure gaming environment for all.”

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