Arizona joins the burgeoning list of states cracking down on unlicensed sports betting operator Bovada.
The Arizona Department of Gaming (ADG) issued a news release on Tuesday, announcing it had sent a cease-and-desist letter to Harp Media B.V., the Curaçao-based company that operates Bovada.com and Bovada.lv.
“We are actively monitoring the evolving landscape of online gaming and taking proactive steps like this helps us protect Arizona’s communities and economy from illegal activities, said Jackie Johnson, director of the ADG. “Our enforcement team is committed to preventing unauthorized operations from establishing a foothold here. Arizona will not be a safe haven for unlicensed or unlawful gaming, nor will we allow unlawful entities to compromise the integrity of gaming within our state.”
Arizona’s letter was sent on Nov. 8 after an investigation alleging Bovada was in violation of Arizona gaming laws, including felony promotion of gambling, illegal control of an enterprise, and money laundering. Following the receipt of the letter, Bovada added Arizona to its restricted list.
States follow Michigan’s lead
Bovada’s restricted list now includes 16 states and the District of Columbia. Many of the states on the list were added after cease-and-desist letters were submitted to Harp Media. Michigan was among the first states to issue a cease-and-desist letter to Bovada’s parent company back in May. Colorado was soon to follow. Bovada responded, quickly placing both states on its restricted list.
Within a matter of months, West Virginia, Connecticut, Ohio, and Louisiana followed suit. So far, Bovada has complied with the states’ legal orders. But not all illegal operators may be as compliant.
Unlike many other countries, the U.S. has few federal gambling regulations, leaving the states to tackle enforcement and protection on their own. Offshore companies prey on the U.S., counting on the resource limitations at the state level to keep them in business.
Several states have asked the U.S. Department of Justice (DOJ) to address the problem of illegal offshore gambling. In 2022, American Gaming Association CEO Bill Miller sent a letter to the DOJ, requesting a federal crackdown on unregulated, offshore gambling sites.
U.S. Department of Justice correspondence responds to request by state gaming regulators regarding illegal offshore wagering. The Nevada Gaming Control Board appreciates the U.S. DOJ addressing perils of illegal, offshore sportsbooks and online casinos. pic.twitter.com/AoIhXVE0hj
— Nevada Gaming Control Board (@NevadaGCB) August 29, 2023
The DOJ claims it is doing what it can. In a 2023 letter to Kirk Hendrick, chairman of the Nevada Gaming Control Board, the DOJ wrote: “The Department has undertaken, and continues to pursue, investigations into illegal gaming. The Federal Bureau of Investigation (FBI) is the investigative arm of the department tasked with vetting allegations of violations of federal gaming laws.”
Until there are more stringent federal laws, however, the states have no choice but to rely on their limited legal strategies and resources. And given the current political climate in the U.S., the introduction of more stringent federal gambling laws is unlikely for the foreseeable future.
