Michigan Gaming Control Board Puts the Screws to Bovada

Bovada, a sports betting provider based in Costa Rica, faced negative developments this week as reports emerged that the Michigan Gaming Control Board (MGCB) is cracking down on the company for operating as an unauthorized offshore sportsbook in the state. It is recommended that residents consider using our top sports betting sites instead.

The company has managed to operate without a license in many states, which has frustrated the nation’s regulated, taxed, and closely monitored legal sportsbooks. It is recommended that residents should utilize Michigan sportsbook promotions instead.

Bovada has been banned from the Nevada and New York sports betting markets, and Michigan may soon follow suit.

The Michigan Gaming Control Board issued a letter to Harp Media B.V., the parent company of Bovada, citing violations of the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code.

Michigan Gaming Control Board means business

The MGCB has implemented proactive measures to regulate which companies can participate in the legal gambling and real money online casinos market in the state. Regulation, licensing, and taxation are key components of this initiative. Companies that fail to comply with the requirements risk losing their place in the Wolverine State market.

The government has compelled Golden Hearts, a charitable sweepstakes casino, to exit the market. VGW, another large nationwide sweepstakes casino, has also withdrew from the Michigan market, as did fantasy operator PrizePicks following scrutiny from the MGCB.

No mixed signals with Bovada

The Michigan Gaming Control Board has taken a strong stance against Bovada, issuing a cease-and-desist warning and demanding the company to exit the Michigan market within 14 days. Residents have access to a variety of legal and regulated Michigan sports betting apps.

Henry Williams, Executive Director of the MGCB, stated that the rise of online gaming platforms has prompted closer examination by regulatory agencies globally. He warned overseas companies that disregarding local regulations will not be accepted. The MGCB is dedicated to enforcing Michigan’s laws and regulations and will vigilantly monitor and enforce compliance to maintain a fair and safe gaming environment for all.

Is action needed on a national scale?

Unlicensed offshore sportsbooks have long been a persistent issue in the American market, and attempts to prevent them from operating in the country have proven ineffective.

The American Gaming Association sent a letter to U.S. Attorney General Merrick Garland in April 2022, urging the discontinuation of illegal gambling sites and highlighting the widespread presence of an illicit sports betting market in America operated by offshore entities.

The AGA President presented evidence showing that searches for offshore sportsbook brands increased by 38% last year, outpacing the growth in searches for legal U.S. operators. Offshore brands now make up the majority of all sportsbook searches, with Bovada alone accounting for 50% of all searches.

Since the 2018 Supreme Court decision to lift the ban on sports betting, the American Gaming Association has been actively advocating for the elimination of illegal, unregulated, and unlicensed operators accepting bets from Americans. However, progress on a national level has been limited.

However, 13 years ago, on what is known as Black Friday, the U.S. Department of Justice successfully shut down operations of three of the largest online poker sites in the United States, all of which were offshore companies.

Last summer, the NFL and other individual leagues publicly expressed their desire to eliminate offshore operators from operating in the US by engaging in pressure campaigns with lawmakers.

Michigan lawmakers have initiated a process that could be replicated on a national level. Brandt Iden, the current VP of government affairs for Fanatics Betting and Gaming and a former lawmaker, commended Michigan’s decision to remove Bovada, stating that Michigan is setting an example in the online gaming industry and demonstrating its leadership.