Sports betting regulators continue to focus on Bovada Sportsbook, with West Virginia becoming the third U.S. state to take action against the offshore site in less than a month. According to Legal Sports Report, the West Virginia Lottery sent a cease-and-desist letter to the Curacao-based website on June 27. Bovada has reportedly not yet responded.
This move by West Virginia follows similar actions taken against Bovada by other states. Michigan was the first to issue a cease-and-desist order in June, threatening legal action unless Bovada ceased its operations.
“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 Henry Williams, executive director of the Michigan Gaming Control Board, in a letter to Bovada.
More States Join the Effort
Following Michigan’s lead, both Colorado and Connecticut have also ordered Bovada to stop operations. Massachusetts is reportedly considering similar action. Currently, six online sportsbooks are legally available in Massachusetts: DraftKings, FanDuel, ESPN BET, Caesars, BetMGM, and Fanatics Sportsbook.
Bovada has recently stopped accepting bets from customers in Delaware, Maryland, Nevada, New Jersey, and New York due to similar regulatory pressures.
State regulators often face challenges in enforcing actions against offshore sports betting sites, as they do not possess the same authority as the Department of Justice. This complicates efforts to regulate illegal activities tied to offshore sports betting.
According to the American Gaming Association, Americans wager more than $500 billion annually on offshore gambling websites. This includes an estimated $63.8 billion on sports betting, with the majority ($337.9 billion) spent on online slots and table games. Unregulated machines account for an additional estimated $109.2 billion each year.
The Future for West Virginia
Since legalizing online sports betting in 2018, West Virginia has been at the forefront of the industry. The state currently hosts eight active sportsbooks, including DraftKings, FanDuel, Caesars, BetRivers, and BetMGM. State law permits up to 15 online sportsbooks, although Bovada and other unregulated entities do not fall under this regulation.
Offshore sites like Bovada and BetOnline operate without oversight from the West Virginia Lottery, making them non-compliant with federal and state laws. This lack of regulation becomes particularly problematic in dispute resolutions.
In 2019, the betting site BetLucky was shut down for failing to meet West Virginia Lottery standards.
West Virginia also has five brick-and-mortar locations that feature some of the best sports betting apps in the state. These include:
- The Greenbrier (FanDuel)
- Mountaineer Casino, Racetrack & Resort (Caesars)
- Wheeling Island Hotel/Casino/Racetrack (Betly)
- Mardi Gras Casino & Resort (Betly)
- Hollywood Casino at Charles Town Races (ESPN BET)
As West Virginia continues its efforts to regulate the sports betting industry, the crackdown on Bovada serves as a significant step in ensuring compliance and protecting consumers.
Rubby Cordelia is a finance journalist for WVPrepBB.com, bringing expertise and clarity to her reporting on financial news. With a passion for demystifying complex economic issues, Rubby delivers insightful analysis and up-to-date information on the latest market trends, financial policies, and economic developments. Her work on WVPrepBB.com is essential reading for anyone looking to stay informed about the ever-changing world of finance.
