West Virginia Lottery Commission Compels Bovada to Restrict State Access

Three weeks after the West Virginia Lottery Commission sent a cease-and-desist letter to Harp Media B.V., the parent company of Bovada, the sportsbook and casino platform has begun restricting access to its services for users in West Virginia. The letter, dated June 26, detailed Bovada's violation of West Virginia law and provided a 14-day compliance period before legal action would be pursued.

Compliance and Immediate Response

John Myers, the head of the West Virginia Lottery Commission, said that Bovada has now added West Virginia to its list of prohibited states for gaming accounts. Yet, despite this compliance, Bovada's Terms and Conditions have yet to be edited to reflect this change. Some user accounts have already been disabled, and affected players are receiving notifications instructing them to reach client assistance for more information.

This move by West Virginia is part of a more expansive effort by U.S. regulators to clamp down on offshore and unregulated gaming operators. Bovada has now determined entry in eight states: Nevada, New Jersey, New York, Maryland, Delaware, Michigan, Colorado, and West Virginia.

’’ As enforcement actions continue, the West Virginia Lottery Commission remains committed to ensuring a regulated and safe gaming environment for its residents.’’

In 2024, the Michigan Gaming Control Board initiated action against Bovada with a cease-and-desist letter in May. Despite initially missing the compliance deadline, Bovada later restricted new sign-ups in Michigan. Likewise, following a June cease-and-desist letter, Bovada also implemented access restrictions in Colorado.

In June, the Connecticut Department of Consumer Protection’s gaming division issued a cease-and-desist letter to Bovada, alleging violations of state laws such as the Connecticut Unfair Trade Practices Act. However, as of July 16, Bovada continues to operate in Connecticut, despite the notice being issued more than a month ago.

Several states are weighing comparable measures. The Massachusetts Gaming Commission is deliberating a potential prohibition of Bovada and has recently deliberated on dispatching a cease-and-desist letter. Additionally, the commission is exploring the possibility of conducting a formal evaluation to ascertain the necessary regulatory actions.

West Virginia's initiative to curb unregulated gaming operations is expected to persist beyond the recent action against Bovada. Director Myers has suggested that the West Virginia Lottery is actively probing other potential violators lacking proper licensing. The state's gaming regulations aim to safeguard players by mandating that all gaming activities adhere to regulated standards of chance, consideration, and prize. The presence of unlicensed operators poses substantial risks to both players and authorized license holders.

Broader Impact on the Gaming Industry

The actions taken by the West Virginia Lottery Commission highlight a growing trend among U.S. regulators to enforce compliance in the online gaming industry. By compelling Bovada to restrict access, West Virginia has taken a significant step in its broader strategy to regulate the online gaming market and protect consumers from unregulated operators.

The crackdown on unregulated gaming platforms like Bovada underscores the importance of regulatory oversight in the gaming industry. This move not only aims to protect consumers but also ensures a level playing field for licensed operators. As more states consider similar actions, the pressure on unregulated operators will likely increase, pushing them to either comply with state laws or cease operations.

Source:

''West Virginia Lottery Commission Restricts Bovada Services'', wvnews.com, July 16, 2024.