National sports regulators are not done prosecuting overseas gambling operators

It is conceivable that national sports betting regulators will send more suspension and desist letters abroad. It is also conceivable that some of these letters are addressed to brands other than Bovada.

The recent circular of warnings to Bovada from national sports regulators may be just the first salvo introduced through national watchdogs to offshore betting sites.  

Curacao-based Bovada last week limited consumers in Colorado and Michigan after the offshore sports betting operator won stop-and-desist letters from regulators in those states.

Seven states are now officially limited through Bovada: Nevada, New Jersey, New York, Maryland, Delaware, Michigan, and Colorado.

But Bovada also recently won a suspension and desist letter from the Connecticut Department of Consumer Protection for several reasons, namely allegations that it offers unlicensed online gambling in the state of New England.  

The operator may simply withdraw from Connecticut, which only has 3 licensed online gambling operators.  

It is possible that Bovada will simply face similar closure requests in other jurisdictions. In addition, Bovada’s other offshore sports betting operators may find themselves suffering with their own resignation and desist letters, as state regulators make it clear that they would conceivably not allow an ocean or thousands of miles of area to stop them from seeking to prevent illegal gambling activities in their backyard.  

“We don’t talk about the prestige of ongoing investigations or check whether we have open investigations into express entities,” Lisa Keith, head of public data for the Michigan Gaming Control Board (MGCB), said in an email to Covers on Tuesday. You can expect to see more action by the MGCB in relation to illegal gambling. “

Bovada was not the first online gaming operator to obtain a suspension and desist letter from the Connecticut Department of Consumer Protection. It probably won’t be the last either.  

“The state of Connecticut has three licensed online gaming operators: FanDuel, DraftKings and Fanatics,” Kaitlyn Krasselt, director of communications for the Department of Consumer Protection, said in an email. “There is no option for more operators to get licensed in our state unless one of the 3 leaves. Any company that engages in unauthorized gambling activities in Connecticut may result in a stop-and-desist letter being sent to the illegally operating company.

The Ohio Casino Control Commission is another state regulator that didn’t shy away from hitting businesses with stop-and-desist letters, especially those that strayed too far from sports betting with contests that paid off.  

While Buckeye’s state regulator has yet to verify that it has recently sent correspondence to Bovada or other offshore operators, this is not due to the commission’s past proactivity.  

“Whether land-based or online, illegal gambling activities are a factor for many regulators,” Jessica Franks, communications director for the Ohio Casino Control Commission, said in an email. “The Commission will use the civilian and criminal equipment at our disposal to uncover gambling products that are illegally filed in the state. We shut down dozens of illegal casinos posing as games of skill businesses, confiscated more than 7,000 illegal slot machines, and took action when fantasy contest operators seek to blur the line between fantasy sports and sports games. .

Therefore, it is imaginable that national sports betting regulators will send more suspension and desist letters abroad. It is also conceivable that some of these letters are addressed to brands other than Bovada.  

American Gaming Association President Bill Miller wrote a letter in April 2022 to U. S. Attorney General Merrick Garland warning that “a gigantic market for illegal sports through offshore websites continues to exist. “

These sites, Miller added, “have established well-known brands, such as Bovada, MyBookie, and BetOnline, that operate with a high degree of visibility and are readily available to any American with a smartphone or connection. ” 

MyBookie and BetOnline have so far avoided the recent wrath of state regulators, at least publicly. But this respite may not last forever.

Meanwhile, the AGA continues to seek that the federal government crack down on offshore gambling sites. The industry organization also hopes more states will follow the lead of Colorado, Connecticut and Michigan.

“The successful anti-Bovada law enforcement moves across Michigan and Colorado are evidence that states have equipment to fight offshore operators and serve as a role model for other states,” Chris Cylke, the AGA’s senior vice president of government relations, said in a recent statement. declaration. But states don’t have to face this war alone: The U. S. Department of Justice will also have to use its powers to help combat illegal gambling, which Congress has obviously considered a precedent for the department.  

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