Bovada's Days in the US Are Numbered as Louisiana Orders Its Exit
The Louisiana Gaming Control Board (LGCB) is intensifying its crackdown on unlicensed operations. The gaming regulator recently issued a cease-and-desist letter to Bovada for its unauthorized activities within the state, the latest state to target the offshore gaming operator.
A Do Not Enter sign outside a building. (Source: Shutterstock)
LISTEN TO THIS ARTICLE:According to the LGCB, Bovada's acceptance of paid plays from Louisiana residents is a clear violation of state law. The LGCB's chair, Chris Hebert, has been proactive in addressing this issue, informing the House of Representatives of the order sent to Bovada on August 6. Despite the LGCB's limited enforcement capabilities, the message is unequivocal: Bovada must halt its operations in Louisiana or face the consequences.
Related: Bovada Continues to Shrink US Footprint as More States Apply PressureUnder the current legal framework, Louisiana strictly prohibits the offering of real-money online casino games. The state has, however, established a regulated system for online sports wagering, which is operational in most regions. Nevertheless, Bovada's operations fall outside this regulated space, as the company lacks the necessary licensing from Harp Media, the designated regulatory body.
The response from Bovada to the LGCB's order has been notably absent. There has been no confirmation of receipt of the cease-and-desist letter, nor any indication of compliance.
This silence is not unprecedented; Bovada's history reveals a pattern of delayed reactions to legal challenges. The company has previously restricted access to its services in at least 11 states, including Colorado, Connecticut, Delaware, Maryland, Michigan, Nevada, New Jersey, New York, West Virginia and Washington, DC, following notifications from law enforcement and regulatory bodies.
This situation raises critical questions about the enforcement of online gambling laws and the future of such operations in the US. The actions taken by the LGCB could signal a turning point in the ongoing battle against unlicensed gambling entities. The outcome of this confrontation could have far-reaching implications for the industry, potentially setting a precedent for how similar cases are handled nationwide.
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The Changing US Gaming Market
The online gambling landscape in the US is a patchwork of state regulations, leading to a variety of challenges for online casinos in the US operating without proper licensing. For instance, PokerStars faced significant legal hurdles in 2011 when the Department of Justice indicted them on charges of bank fraud, money laundering, and illegal gambling offenses.
This event, known as "Black Friday" in the online poker community, dramatically changed the legal context for online poker in the US. It also and led to the exit of several poker sites from the American market before state laws began to change six years ago.
Another notable example is the case of Full Tilt Poker, which was also involved in the Black Friday indictment. The platform faced accusations of operating a Ponzi scheme and misrepresenting their financial status to players. This resulted in a substantial legal battle and eventually, a settlement with the Department of Justice, which included the forfeiture of assets and a plan to reimburse players.
Similarly, Absolute Poker, another major player in the online poker industry, was implicated alongside PokerStars and Full Tilt Poker during the Black Friday crackdown. The company faced charges related to the violation of the Unlawful Internet Gambling Enforcement Act (UIGEA) and was forced to cease operations in the US, with its assets being seized by the federal government.
In more recent years, offshore online casinos like 5Dimes have also encountered legal issues. In 2020, it agreed to forfeit over $46 million in assets as part of a settlement with the US government stemming from its illegal gambling operations. The settlement will allow 5Dimes to re-enter the US market legally, provided it adheres to federal and state gambling laws and can receive a license.
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