Bovada Pulls Out of Three More U.S. States Amidst Regulatory Pressure

Bovada, a well-known offshore sportsbook, has withdrawn its services from Kansas, Louisiana, and Pennsylvania, adding these states to a growing list of restricted U.S. markets. This decision brings the total number of states where Bovada is no longer accessible to 13, in addition to Washington, D.C. The move follows increased pressure from state authorities determined to regulate the online gambling space and protect consumers by driving out illegal operators.

The Kansas Racing and Gaming Commission (KRGC) and the Pennsylvania Gaming Control Board (PGCB) are among the state agencies that issued cease-and-desist letters to Bovada earlier this year, urging the company to stop its operations. In Kansas, the KRGC sent their notice in July, with Bovada complying in August by adding the state to its list of restricted markets. Pennsylvania took similar action at the end of August, demanding that Bovada cease operations within its jurisdiction.

This is part of a broader national movement to push illegal offshore gambling operators out of the U.S. market. Kansas and Pennsylvania join other states, including Michigan and Ohio, which have successfully pressured Bovada to leave. State regulators argue that unlicensed platforms like Bovada pose a risk to consumers by offering fewer protections and no guarantees compared to licensed and regulated sportsbooks.

James Bain, an enforcement attorney for the KRGC, highlighted the importance of protecting Kansas bettors, stating, “Our main goal is to ensure that the betting public is playing on licensed, regulated, and taxed sites.” Similarly, Louisiana Gaming Control Board Chairman Christopher Hebert voiced criticism of Bovada, accusing the company of violating state laws by enabling illegal wagers.

Despite Bovada’s withdrawal from 13 states, the offshore betting market remains a significant issue across the U.S. The IRS estimates that the illegal sports betting industry could be worth as much as $700 million, underscoring the difficulty regulators face in fully controlling the sector. The American Gaming Association (AGA) has been particularly vocal in urging federal authorities to take stronger actions against illegal operators like Bovada.

The battle between U.S. regulators and offshore gambling brands continues, with the pressure on unlicensed operators intensifying as more states legalize and regulate sports betting. Offshore operators still attract a substantial number of U.S. bettors, but Bovada’s exit from additional states marks progress in the nationwide crackdown.

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While Bovada continues to operate in many U.S. states, the pressure on the company and other offshore brands is likely to persist. States like Massachusetts are reportedly considering further actions, although no cease-and-desist orders have yet been issued. Whether federal authorities will step in remains an open question, but as Bovada continues to restrict access in more regions, its presence in the U.S. market could continue to shrink.

Source:

, lcb.org, September 20, 2024.