Michigan Gaming Control Board Puts the Screws to Bovada

Costa Rica-based sports betting provider Bovada received some bad news and perhaps some unwanted press this week with reports that the Michigan Gaming Control Board (MGCB) is taking the company to task for operating as an illegal, unregulated offshore sportsbook in the state. Residents should instead be looking to our best sports betting sites.

The company has largely been able to operate as an unlicensed provider in most states, much to the chagrin of the nation's regulated, taxed, and heavily scrutinized legal sportsbooks. Residents should instead take advantage of Michigan sportsbook promos.

The Nevada sports betting and New York sports betting scenes have already banned Bovada’s presence and Michigan sports betting seeks to be the next.

A Michigan Gaming Control Board letter to Bovada's parent company, Harp Media B.V., cited three violations: the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code, all of which Bovada has violated. 

Michigan Gaming Control Board means business

The MGCB has taken bold action to ensure that it approves what companies can operate in the state’s legal gambling and real money online casinos market. Regulation, licensing, and taxation are the main cogs in the action. Any company not holding up its end of the bargain will be endangered in the Wolverine State market.

The government has forced Golden Hearts, a charitable sweepstakes casino, out of the market. Another massive nationwide sweepstakes casino VGW also vacated the Michigan market as did fantasy operator PrizePicks after scrutiny from the MGCB.

No mixed signals with Bovada

The Michigan Gaming Control Board made its intentions very clear with its latest effort against Bovada, sending it a cease-and-desist warning and giving the company 14 days to withdraw from the Michigan scene. Plenty of legal, regulated Michigan sports betting apps are available for residents.

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

Is action needed on a national scale?

Unregulated, unlicensed, offshore sportsbooks are not a new problem in the American market, and efforts to stop them from doing business in America have not succeeded.

In April 2022, The American Gaming Association sent a letter to U.S.Attorney General Merrick Garland calling for the end to such illegal sites and pointing out a “vast illegal sports betting market” that exists in America from offshore sites.

AGA President brought receipts saying that “Nationwide internet searches for offshore sportsbook brands increased 38% last year, faster than the search growth for legal U.S. operators, and searches for offshore brands represented a majority of all sportsbook searches. Bovada alone accounts for 50% of all searches.” 

The American Gaming Association has aggressively pushed to see the end of illegal, unregulated, unlicensed operators taking Americans’ bets since the 2018 Supreme Court decision to overturn its blanket ban on sports betting. Not a whole lot has been done on a national scale so far.

However, 13 years ago, during what is called Black Friday, the U.S. Department of Justice was able to cease the operations of three of the biggest online poker sites operating in America; all were offshore companies.

Individual leagues, such as the NFL last summer, have also signaled publicly, through pressure campaigns with lawmakers, their desire to end the presence of offshore operators from working on American soil.

Michigan lawmakers have started something that can be finished on a National scale. Brandt Iden, current VP of government affairs for Fanatics Betting and Gaming, a former lawmaker, praised Michigan’s move to expel Bovada, saying that Michigan is “a leader in the online gaming industry and today showcases that leadership.”