Arizona Issues Cease-and-Desist to Bovada Over Illegal Gambling

The Arizona Department of Gaming (ADG) has initiated robust measures to curb illegal gambling operations by the offshore company Bovada, based in Curaçao. On November 8, 2024, the ADG issued a cease-and-desist letter directed at Harp Media B.V., the parent company managing Bovada.com and Bovada.lv, effectively halting their unauthorized gambling activities within Arizona.

The department publicized this enforcement step in a press release on December 3, 2024. The ADG asserts that Bovada's operations contravene state gambling laws, including allegations of promoting gambling, illegal enterprise control, and money laundering, all of which are considered felonies. Jackie Johnson, the director of the ADG, stressed the significance of this enforcement action, stating, "Arizona will not be a safe haven for unlicensed or unlawful gaming, nor will we allow unlawful entities to compromise the integrity of gaming within our state."

National Momentum Against Offshore Operators

Arizona joins a growing coalition of 16 states and the District of Columbia that have issued equivalent cease-and-desist directives against Bovada in recent times. States such as Michigan, Connecticut, Ohio, and Pennsylvania are actively opposing unauthorized offshore gambling operators. Michigan notably took the initiative in May 2024. In response, Bovada has consistently curtailed access to its platforms for users in these regions that have enforced legal actions. Despite these state-level efforts, not all offshore entities adhere to restrictions. The abundance of enforcement challenges and resource deficits at the state level offer a loophole for many such operators. Some advocates argue for federal involvement, suggesting a more unified approach to combat these operations. In 2022, the American Gaming Association called upon the U.S. Department of Justice (DOJ) to intensify actions. Although the DOJ has confirmed ongoing investigations, it admits to limited capacity, thus requiring individual states to spearhead these regulatory actions.

Ensuring Safe Gambling in Arizona

Arizona legalized sports betting in September 2021, crafting a regulated framework that partners exclusively with licensed operators to assure consumer protection. The ADG has continuously advised residents to engage solely with sanctioned platforms to avoid risks associated with illicit gambling services. The department further cautions against scams orchestrating to steal personal data under the guise of false gaming opportunities. To assist residents in distinguishing authorized platforms, the ADG provides a publicly accessible list of licensed operators on its website.

Bovada is not an isolated target; it represents only a portion of offshore operators under scrutiny in the U.S. Highlighting the broader implication, Jackie Johnson emphasized that these regulatory measures are instrumental in safeguarding Arizona’s community and economy from illegal undertakings: "We are actively monitoring the evolving landscape of online gaming and taking proactive steps like this helps us protect Arizona's communities and economy from illegal activities." While state-led efforts like Arizona's are making strides, the absence of comprehensive federal gambling regulations perpetuates enforcement challenges. Offshore companies often rely on these enforcement gaps to sustain their U.S. market presence. Until robust federal legislation is enacted, Arizona and other concerned states are committed to maintaining a lawful and equitable gaming environment.

Source: Arizona Targets Bovada with Cease-and-Desist Order, lcb.org, December 5, 2024.