Michigan regulator takes aim at Bovada with cease-and-desist letter
Parent company Harp Media B.V. given two weeks to stop illegally accepting players in the state or face being hit with legal action
The Michigan Gaming Control Board (MGCB) has issued prominent offshore sportsbook Bovada with a cease-and-desist letter.
As part of its latest efforts to curb the illegal market, the MGCB said it had taken “decisive action” against the Curaçao-based parent company Harp Media B.V. for operating illegal sites accessible to Michigan citizens.
The US-facing sites in question are Bovada.com and Bovada.lv, the latter of which uses the top-level domain of Latvia to trick unsuspecting gamblers into thinking they are placing bets with a Las Vegas sportsbook.
The regulator has given Harp Media 14 days from the receipt of the letter to take steps to block Michigan residents from gambling on their websites or face legal action.
The MGCB said Harp Media was breaching the Lawful Internet Gaming Act by offering online gambling without a license and was flouting the Michigan Penal Code and the Michigan Gaming Control and Revenue Act.
A party who operates an unlicensed gambling operation is guilty of a felony punishable by imprisonment for up to 10 years or a maximum fine of $100,000, or both, the regulator stated.
MGCB executive director Henry Williams said: “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.
“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,” he added.
The regulator urged consumers to exercise caution and check with its website to ensure a gambling operator is licensed to take bets digitally in Michigan.
In a statement, American Gaming Association president Bill Miller praised Michigan’s decision.
He said: “The Michigan Gaming Control Board’s decisive action highlights that states have the power to protect their residents from predatory, offshore gambling sites and is another important step in winning the battle against the illegal market.
“The AGA applauds the MGCB’s leadership against bad actors like Bovada and urges other states to follow Michigan’s lead.”
Launched in 2011, Bovada became the new identity of online gambling site Bodog, which was first launched in 2000 by Canadian entrepreneur Calvin Ayre.
Bovada’s home of Curaçao is currently reforming its gambling laws and its reputation to become a more trusted and reputable igaming hub.
The Dutch Caribbean island is on the cusp of rolling out the National Ordinance for Games of Chance (LOK) to make its licensing regime far more robust.
Michigan’s crackdown comes after the state reported $399.1m in online sports handle for April, down almost 17% from March, while total online revenue fell 8.7% to $234.8m.
At the weekend, Caesars became the first operator to pool player liquidity across three states, as Michigan was added to its network of New Jersey and Nevada.