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Bovada Adds Pennsylvania Restricted Jurisdictions

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Branimir Ivanov | Senior News Contributor

Updated: Sep 21, 2024

Pennsylvania Crackdown

In a significant move against offshore gambling operations, Bovada, one of the largest offshore betting platforms, has expanded its list of restricted U.S. jurisdictions by adding Pennsylvania, Kansas, and Louisiana. With this addition, Bovada's restricted list now includes 13 states and Washington, D.C., highlighting a growing trend of states taking action against illegal online gambling operators.

This development is the latest in an ongoing effort by state regulators to clamp down on offshore operators who offer unlicensed gambling services to U.S. residents. While Bovada has long operated in the gray area of online gambling, states are now using legal tools like cease-and-desist orders and threats of litigation to force the company to exit certain markets.

 

Cease-and-Desist Letters Spark Action

The push to curtail Bovada’s operations began in May when Michigan became the first state to issue a cease-and-desist letter to the company's parent organization, Harp Media. Michigan's regulatory authorities demanded that Bovada halt its operations in the state, as it was offering gambling services without the necessary licensing. This action set the stage for a wave of similar responses from other states.

By August, Connecticut, Colorado, and Ohio had joined Michigan in sending legal warnings to Bovada, signaling that a coordinated regulatory effort was in play. While Bovada initially did not respond to these legal warnings, the company began removing itself from these markets, starting with Michigan. The company's subsequent moves to restrict access in Connecticut, Colorado, and Ohio followed soon after.

Pennsylvania, one of the latest states to take action, had been closely watching Bovada for months, particularly after the platform allowed bets on the Little League World Series, an event the state considers off-limits for wagering. This prompted the Pennsylvania Gaming Control Board (PGCB) to issue a cease-and-desist letter in late August, targeting Bovada’s operations in the state. The PGCB confirmed that the letter was part of an ongoing investigation, and as of September 17, Pennsylvania officially appeared on Bovada’s restricted list.

“The Pennsylvania Gaming Control Board’s Office of Enforcement Counsel did send Bovada a cease-and-desist letter at the end of August,” said PGCB spokesperson Richard McGarvey. “Because the letter came from the Board’s investigative unit, it is considered confidential.”

 

Kansas and Louisiana Join the Fight

In Kansas, the Racing and Gaming Commission (KRGC) took similar steps, issuing its cease-and-desist letter to Bovada on July 8. Randy Evans, the KRGC’s government relations manager and law enforcement officer, emphasized that the state’s primary goal was to ensure the protection of bettors by promoting licensed, regulated gambling platforms.

“Our main goal is to make sure the betting public in Kansas is protected and playing on licensed, regulated, and taxed sites. We want to make sure we can try to protect the public if there is an issue on bets, getting paid out, anything like that,” Evans said, underscoring the importance of state oversight in preventing fraud and ensuring fair play.

Louisiana followed with its own letter in early August. According to the Louisiana Gaming Control Board’s chairman, Christopher B. Hebert, Bovada was allowing Louisiana residents to place wagers on a wide range of gambling activities, including sports betting, online casino games, poker, and horse racing, all without holding the proper state licenses.

“Bovada is allowing Louisiana residents and/or persons located in the state of Louisiana to place wagers via mobile applications and internet websites with online casino services, which include sportsbooks, iGaming, table games, slots, live dealers, poker, horse racing, and hundreds of other gambling options in violation of Louisiana gaming laws and regulations,” Hebert stated in the letter.

While Louisiana allows licensed online sports betting, the state strictly prohibits unlicensed online casino gaming. Bovada’s lack of a license to operate in the state meant it was in clear violation of these laws.

 

Financial Implications for Legal Operators

Bovada’s decision to restrict access in Pennsylvania, Kansas, and Louisiana comes as these states look to strengthen their legal gambling markets. Pennsylvania, in particular, has seen substantial growth in its regulated online gambling sector. In August alone, the state's online casinos recorded $225 million in revenue, marking the second-highest monthly total ever for Pennsylvania.

The departure of Bovada from these markets is expected to drive more bettors toward legal, regulated platforms, thus boosting state revenues. Licensed operators, which are subject to taxation and oversight, stand to gain significantly from the exit of offshore competitors like Bovada, as players seek safer and more reliable betting platforms.

For states like Kansas and Louisiana, the focus remains on protecting the betting public from unregulated markets. By curbing Bovada’s operations, regulators hope to ensure that bettors are using platforms that are subject to state consumer protection laws and standards. Bovada’s restricted list now includes some of the largest and most lucrative gambling markets in the U.S., such as Nevada, New Jersey, New York, and Michigan. These states have long-established legal gambling frameworks, and regulators have been increasingly vigilant in protecting their markets from offshore operators.

 

“Our main goal is to make sure the betting public in Kansas is protected and playing on licensed, regulated, and taxed sites.”

 

More States Likely to Follow

As Bovada continues to face pressure from state regulators, more states may soon join the list of those restricting the offshore operator. Massachusetts, for instance, has reportedly been considering a crackdown on offshore gambling platforms as part of a broader effort to clean up its sports betting market. While no official action has been taken, regulators in the state have hinted that an update could be coming soon.

This growing trend of states taking legal action against Bovada and other offshore operators reflects a broader shift in the U.S. gambling landscape, where licensed and regulated operators are increasingly favored over their offshore counterparts. With more states launching legal online gambling markets, the pressure on unlicensed operators is only expected to intensify in the coming months.

As the regulatory cat-and-mouse game between state authorities and offshore operators continues, Bovada’s expanding list of restricted jurisdictions underscores that these enforcement efforts are starting to yield tangible results.

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