Massachusetts Orders Bovada to Cease and Desist
Online gambling operator Bovada has been slammed with a cease-and-desist letter, this time in Massachusetts. This development confirmed earlier rumors that claimed the Bay State would be the next to take action against the offshore operator.
Bovada Restricted in Yet Another State
Bovada, for context, is one of the biggest offshore operators in the US. The companyâs popularity, however, has sparked regulatory concerns and irked state regulators for some time, especially considering the fact that it presents itself as âAmericaâs Number 1 Destinationâ for online betting and gaming.
Assistant attorney general Louisa Gibbs criticized Bovadaâs aggressive targeting of US customers through partnerships with major league teams, which further incentivizes Americans to play with the offshore operator.
The inducement of consumers to participate in illegal and unregulated forms of gambling by posing as a legitimate business is a violation of state consumer protection law.
Assistant attorney general Louisa Gibbs
While many markets were mostly content to ignore Bovada at first, authorities have recently started taking action against the company.
Massachusetts is the latest state to hit Bovada with a cease-and-desist order, asking it to stop offering its products to local players. In a letter by the stateâs attorney generalâs office to Harp Media and the Union of the Comoros-based Hove Media, which operate Bovada, authorities slammed the companyâs products as illegal gambling.
Bovada was also asked to refund players, lest it risks further regulatory action. According to Gibbs, failure to comply risks Bovada civil penalties of up to $5,000 per violation.
America Fights the Black Market Back
As mentioned, Massachusetts isnât the only state that has cracked down on Bovadaâs operation. The war on Bovada was led by Michigan, which sent a cease-and-desist letter to the company earlier this year.
Soon, other states, including Ohio, issued similar orders. Kansas, Louisiana and Pennsylvania are some of the most recent US jurisdictions to order Bovada to cease and desist.
The crackdown comes amid a wider counteraction against unregulated gambling firms, especially ones claiming to be legal and actively targeting local customers.
Massachusetsâ attorney generalâs office underscored the dangers posed by offshore companies, noting that they do not put in the same efforts to protect players and do not provide the same payout guarantees as their legal counterparts.
In addition to unlicensed gaming, US regulators have also started cracking down on controversial sweepstakes platforms, arguing that their products constitute illegal gambling.
