Massachusetts Attorney General Issues Cease-and-Desist to Bovada for Unlicensed Gambling

The Massachusetts Attorney General’s Office (AGO) recently issued a cease-and-desist order to Harp Media B.V. and Hove Media, the operators of the Bovada gambling website, citing unauthorized online gambling services offered in Massachusetts. This move reflects the state's ongoing efforts to curb unlicensed gaming operations, focusing on entities that present themselves as U.S.-based but operate without state authorization.

In its formal notification, the AGO underscored that Bovada has been providing online sports betting and casino games without obtaining a license from the Massachusetts Gaming Commission. This lack of authorization violates state laws governing gambling and sports betting, exposing Massachusetts residents to potential risks associated with unlicensed gambling operations.

Alleged Violations and Consumer Protection Concerns

Beyond the licensing issue, Massachusetts officials accuse Bovada of misrepresenting its operations as U.S.-based, which the AGO argues is misleading to Massachusetts residents. The Attorney General’s letter emphasizes that Bovada’s conduct breaches Chapter 93A of state consumer protection laws by presenting itself as a "USA-based" gambling platform while reportedly operating from Curaçao.

The AGO has demanded that Bovada cease all operations targeting Massachusetts users and promptly refund affected players in U.S. currency. Citing public safety concerns, the AGO warned that unlicensed gambling websites like Bovada lack the regulatory safeguards typically mandated for licensed operators, including protections against gambling addiction, measures to prevent underage gambling, and mechanisms to secure player funds.

The Attorney General’s Office has taken a firm stance against unregulated gambling platforms, stressing the heightened risks they pose to consumers. Unlike licensed entities, these offshore operators are not subject to the regulatory reviews that Massachusetts imposes on authorized platforms. This leaves users more vulnerable to issues such as limited access to funds and a lack of player protections.

Attorney General Andrea Joy Campbell has made combating illegal and harmful gambling practices a priority in her tenure. In March, she launched the Youth Sports Betting Safety Coalition, a collaborative initiative between private and public sectors aimed at promoting awareness of the risks associated with youth gambling and highlighting state laws surrounding sports betting.

The letter to Bovada represents another step in Campbell’s mission to minimize the public health impact of unauthorized gambling activities, especially on young audiences. The AGO’s Gaming Enforcement Division, which oversees regulatory actions like the Bovada case, receives partial funding from the Massachusetts Gaming Commission, further aligning state resources in these initiatives.

Widespread Enforcement Actions Against Bovada Across States

Massachusetts joins a growing list of U.S. states that have taken steps to curb Bovada’s unlicensed activities. Currently, Bovada restricts access to players in 13 states and Washington, D.C., with recent additions including Pennsylvania and Kansas. Regulators in these states similarly issued cease-and-desist orders to the company, which typically does not respond formally but quietly blocks user access from restricted jurisdictions.

In recent months, other states such as Louisiana, Michigan, and Connecticut have followed a similar path, barring Bovada from offering services to their residents. The pattern suggests an escalating trend of enforcement actions against offshore operators that do not comply with local laws.

North of the border, regulatory pressures have had similar effects, as demonstrated by Antigua and Barbuda-based operator Bodog, which exited Nova Scotia’s gambling market.

As Massachusetts intensifies its crackdown on unlicensed operators, the state is simultaneously growing its legal online gambling market. This past summer saw the entry of Bally Bet into the state’s sports betting landscape, adding to Massachusetts’ roster of licensed gambling options.

In addition, Governor Maura Healey recently signed a state budget provision that legalizes online lottery sales and introduces electronic instant games, set to launch in 2025. The Massachusetts State Lottery Commission will be responsible for overseeing the implementation of this online system, ensuring that these new offerings align with state regulatory standards.

By expanding its regulated online gaming options while targeting unlicensed operators, Massachusetts is working to create a safer, more controlled environment for its residents interested in online gambling.

Source:

''Attorney General’s Office Issues Cease-And-Desist Letter To Online Gambling Operator For Illegal Offshore Casino Operation'', mass.gov, October 03.2024.