Bovada Continues to Shrink Us Footprint as More States Apply Pressure
Online sports betting and gaming operator Bovada has been compelled to further reduce its operational footprint within the US. The company has now ceased offering services in Connecticut and Washington, DC, following a series of regulatory pressures in other states.
The home page of the Bovada website. (Source: Bovada)
LISTEN TO THIS ARTICLE:This latest development brings the total number of jurisdictions from which Bovada has withdrawn to 10. The offshore operator, which holds a gaming license from Curaçao, can't use that license within the US, leading to a significant shift in its business strategy.
Connecticut's Department of Consumer Protection issued a cease-and-desist order to Harp Media B.V., Bovada's parent company, on June 14, marking a decisive action against the unlicensed operator. Similarly, Washington, DC, has seen a tightening of its online sports betting market, with major players such as FanDuel, BetMGM, Caesars, and DraftKings expanding their presence, thereby leaving little room for unregulated entities like Bovada. These two join Colorado, Delaware, Maryland, Michigan, Nevada, New Jersey, New York and West Virginia on the list of restricted states.
Related: MGCB Cracks Down on Bovada in MichiganThe retreat of Bovada from these markets is indicative of a broader trend in the US, where state and federal authorities are intensifying their efforts to clamp down on unregulated gambling and betting sites. This movement mirrors actions taken by other countries over the past years, aiming to protect consumers and ensure the integrity of gambling activities. By enforcing strict regulations, states are not only looking to safeguard participants but also to channel the economic benefits of sports betting, such as tax revenue and job creation, into their jurisdictions.
More Business News
The Warning Has Been Sent
As the landscape of legal and regulated online gambling continues to evolve, the tolerance for unlicensed operators diminishes. The American Gaming Association has reported that Americans gamble an estimated $511 billion each year with illegal and unregulated sportsbooks and iGaming websites. This illegal wagering deprives state governments of substantial tax revenue, amounting to $13.3 billion annually. The report underscores the need for a crackdown on such activities to protect consumers and recover lost tax revenues.
Moreover, the US Department of Justice has been petitioned by gaming regulators from several states to intensify the investigation and prosecution of illegal offshore gaming websites. This call to action signifies the growing priority to address and mitigate the risks associated with unregulated gambling, which has been a longstanding issue within the industry.
With the increasing legalization and regulation of online gambling across the US, states are progressively taking a stand against unlicensed operators. The potential financial penalties and reputational damage for companies operating without a license are significant risks that are becoming increasingly untenable.
Bovada's withdrawal from 10 jurisdictions already is a clear reflection of the changing tides in the US gambling landscape. However, the list is likely to grow. Massachusetts and Louisiana have both hinted at possibly ordering the company to exit those states, as well.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Bovada Continues to Shrink Us Footprint as More States Apply Pressure