Massachusetts Issues Cease-and-Desist to Bovada
Massachusetts residents have plenty of our best sports betting sites, but some bettors turn to unregulated sportsbooks. As of last week, one less unlicensed option should be off the table.
It's a story that's become a common theme nationwide, and now Massachusetts sports betting is getting the same treatment: Bovada has been issued a cease and desist letter. Issued Oct. 3, the letter outlined numerous issues that the Attorney General took with the sportsbook operating in the Bay State, demanding that all services offered to residents cease immediately and that customers on the website receive refunds.
Seven sportsbooks are operational in Massachusetts, including Mass-based DraftKings, FanDuel, Fanatics, Caesars, and BetMGM, have been awarded are actively offering Massachusetts sportsbook promos.
The letter
The was sent to Bovada's parent company, Harp Media B.V. and Hove Media, and took issue with the operator offering "unlicensed online gambling and betting products in Massachusetts."
That doesn't refer to its sports betting operation but to the real-money online casino options offered, including slots, blackjack, roulette, poker, and more. Massachusetts has brick-and-mortar casinos, but no legal online casino industry exists.
Assistant Attorney General Louisa Gibbs, who penned the letter, also took aim at how the company represented itself. Particular focus was made on its "claims that it is "USA-based," the "face of the industry," "America's No. 1 destination," and that it suggests it operates responsible gambling.
Things closed up with a demand to immediately cease operations and allow all residents to be refunded with U.S. currently. Failure to do so may result in "injunctive relief, restitution, civil penalties up to $5,000 per violation, and the cost of the investigation and litigation."
Bovada in the crosshairs
Massachusetts sports betting apps are far from the first to strike the illegal sportsbook from their roster, as Bovada has been in the crosshairs of state regulatory bodies nationwide. No license, no taxes to needy state and local coffers, no operation.
The Nevada sports betting and New York sports betting scenes have systems in place to prevent Bovada and other offshore betting operators from operating in their jurisdictions.
In June, we reported that the operator had heeded calls from regulatory bodies in the Michigan sports betting and Colorado sports betting markets. Connecticut sports betting also took action in June, and by late July, the sportsbook had ceased operation there and in the DC sports betting markets.
The clampdown didn't stop there.
The Ohio sports betting market issued a cease-and-desist in August. The Louisiana sports betting scene followed suit, issuing its own cease-and-desist.
Needless to say, it's been a rough few months for the unlicensed regulator trying to operate in a sports betting world that is quickly becoming regulated and licensed.