Michigan Sends Cease-and-Desist Letter to Bovada for Unauthorized Operations

Michigan Sends Cease-and-Desist Letter to Bovada for Unauthorized Operations
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Detroit Lions wide receiver Josh Reynolds celebrates with fans after scoring the first touchdown of the game during the second quarter against the Tampa Bay Buccaneers in the NFC divisional round playoff game at Ford Field in Detroit on Sunday, Jan. 21, 2024.

  • The Michigan Gaming Control Board has issued a cease-and-desist letter to Bovada, an offshore online sportsbook and casino
  • Bovada’s parent company, Harp Media B.V., is located in Curaçao
  • Bovada operates unlicensed gaming services in several states across the country

This is definitely going to be something to keep an eye on.

The Michigan Gaming Control Board announced this morning it issued a cease-and-desist letter to Harp Media B.V., which operates the the offshore and unlicensed online sportsbook Bovada, on May 29.

The gaming control board sent the cease-and-desist letter to Harp Media B.V. for allowing its “illegal online gaming sites, Bovada.com and Bovada.lv” to be accessible by Michigan citizens.

14-Days to Take Action

The gaming control board has given Harp Media B.V. 14-days from the receipt of the letter to prevent Michigan residents from gambling on their websites, or the MGCB will take legal action against the company.

“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,” MGCB Executive Director Henry Williams said. “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.”

The gaming control board claims Harp Media B.V. is in violation of several Michigan gaming laws:

  • Lawful Internet Gaming Act: States internet gaming may only be offered by a licensed internet gaming operator
  • Michigan Gaming Control and Revenue Act: Prohibits a party from conducting a gambling operations without a licensed issued by the MGCB. Parties operating unlicensed gambling operations in the state may face imprisonment for up to 10 years or a fine up to $100,000 or both
  • Michigan Penal Code: Broadly prohibits any form of gambling, which generally involves the elements of consideration, prize, and chance. Such as, accepting money, or anything of value, with the understanding that money, or anything of value, will be paid to any person based on the outcome of an uncertain event is prohibited

The offshore, unlicensed sportsbook and online casino Bovada is widely available throughout the country, but has banned customers from Delaware, New Jersey, New York, Maryland and Nevada in recent years after the states passed legislation to curb their operation.

Michigan may be the next state Bovada decides to pull its gaming services.

MGCB Focusing on Illegal Gaming Operations

In 2023, the MGCB, through a partnership with the Michigan Attorney General’s Office, seized 79 machines used for illegal gambling, charged nine individuals with criminal gambling convictions, and arraigned 24 individuals on illegal gambling charges.

At the recent International Masters of Gaming Law 2024 Spring Conference, Williams made it clear that the state will continue to focus on dismantling illegal gaming operations both domestically and offshore.

“If people choose to ignore the law and don’t do what’s legal, we’re going to find them and hold them accountable for their actions,” he said. “In Michigan, the Michigan Gaming Control Board has made it a priority to do everything we can to protect our state’s citizens from illegal gambling market operators and our legitimate gaming industry from being tarnished by its illegal counterparts. We have a zero-tolerance policy towards illegal gaming activities

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The state of Michigan has recently taken action against the online gambling site Bovada, sending a cease-and-desist letter for operating without proper authorization. The letter, issued by the Michigan Gaming Control Board, highlights the illegal nature of Bovada’s operations within the state and warns of potential legal consequences if they continue to offer their services to Michigan residents.

Bovada, a popular online gambling platform known for its sports betting and casino games, has been operating in Michigan without obtaining the necessary licenses from the state. This puts them in violation of Michigan’s laws and regulations regarding online gambling, which require operators to be licensed and regulated by the state.

The cease-and-desist letter serves as a formal notice to Bovada to immediately stop offering their services to Michigan residents and to cease all operations within the state. Failure to comply with the letter could result in further legal action, including fines and penalties for violating Michigan’s gambling laws.

The Michigan Gaming Control Board is committed to enforcing the state’s laws and regulations surrounding online gambling to protect consumers and ensure a fair and competitive marketplace. By cracking down on unauthorized operators like Bovada, the board aims to uphold the integrity of the gaming industry in Michigan and safeguard the interests of both players and licensed operators.

In response to the cease-and-desist letter, Bovada has yet to make a public statement regarding their plans to comply with Michigan’s regulations or any potential legal actions they may face. It remains to be seen how this situation will unfold, but one thing is clear – the state of Michigan is taking a strong stance against unauthorized online gambling operators and is willing to take action to enforce its laws.