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Massachusetts Attorney General Orders Bovada to Cease Operations

Posted on October 8, 2024 | 12:06 pm
Massachusetts-latest-state-to-kick-Bovada-to-the-curb

The Massachusetts Attorney General’s Office (AGO) has taken decisive action against Bovada, an offshore gambling operator, by issuing a cease-and-desist letter for operating in the state without a proper license. The letter was directed at Harp Media B.V. and Hove Media, which together operate under the Bovada name. This move comes as part of the state’s effort to crack down on illegal online gambling activities and protect consumers from the risks associated with unregulated operators.

Bovada has been providing online casino games and sports betting services in Massachusetts without authorization from the Massachusetts Gaming Commission, which oversees licensed gaming activities in the state. According to the letter, this lack of proper licensing is a violation of state gaming and sports betting laws. Additionally, Bovada is accused of misleading consumers by marketing itself as a “USA-based” operator, while in reality, it is based offshore on the Caribbean island of Curaçao. This has led to further violations of Massachusetts consumer protection laws under Chapter 93A.

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Massachusetts Demands Immediate Action

In the cease-and-desist letter, the Massachusetts AGO demands that Bovada immediately cease all operations within the state and refund all Massachusetts users in U.S. currency. The letter highlights that unlicensed operators like Bovada pose significant dangers to consumers, as they do not meet the same regulatory standards as licensed entities. These operators lack crucial safeguards, such as protection against gambling addiction and underage gambling, and often provide unreliable access to customer funds due to their offshore nature.

Attorney General Andrea Joy Campbell emphasized the importance of addressing the harms caused by unregulated gambling, particularly among young people. This latest action aligns with her broader efforts to combat the negative impacts of gambling, including the establishment of the Youth Sports Betting Safety Coalition earlier this year, which aims to raise awareness about the risks of youth sports gambling.

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Bovada's Growing List of State Bans

Massachusetts is not the only state where Bovada has faced enforcement action. The operator has been forced to restrict access in several other states following similar cease-and-desist orders. Recently, Bovada added Pennsylvania and Kansas to its list of restricted jurisdictions, following actions taken by those states’ regulators. Other states such as Louisiana, Michigan, and Connecticut have also moved to bar Bovada from offering services within their borders.

Despite these legal challenges, Bovada has typically remained unresponsive to direct regulatory enforcement, quietly adding states to its list of restricted regions without public acknowledgment. As of now, the site is inaccessible in 13 U.S. states and Washington, D.C.

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Massachusetts Expands Regulated Online Gambling Market

While Bovada faces enforcement action, Massachusetts continues to expand its own regulated online gambling options. Over the summer, Bally Bet joined the state’s growing pool of licensed online sports betting operators. Additionally, Governor Maura Healey signed into law the state’s 2025 budget, which includes provisions for legalizing online lottery sales and einstant games starting next year.

The Massachusetts State Lottery Commission is currently working on the process of selecting an operator to manage the state’s upcoming online gaming system. As the state’s legal market grows, unlicensed operators like Bovada are facing increased pressure to withdraw from the market.

This ongoing push to remove illegal operators, coupled with the expansion of regulated online gambling options, is part of Massachusetts’ broader strategy to ensure that consumers have access to safe, secure, and legal gaming platforms.

Source:

Attorney General’s Office Issues Cease-And-Desist Letter to Online Gambling Operator for Illegal Offshore Casino Operation, mass.gov, October 4, 2024.

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