Arizona Cracks Down on Bovada with Cease-and-Desist Order
In a significant enforcement action, the Arizona Department of Gaming (ADG) has sent a cease-and-desist letter to Bovada, a well-known offshore operator, accusing the company of offering illegal gambling services to Arizona residents. The letter, issued on November 8, 2024, was made public by the ADG on December 3, 2024. This marks a major step in Arizona’s ongoing efforts to curb unauthorized gambling operations in the state.
Alleged Violations and Serious Charges
The ADG’s cease-and-desist order against Bovada, operated by Harp Media B.V. and based in Curaçao, is grounded in the violation of several Arizona gaming laws.
The operator faces charges related to the promotion of gambling, illegal control of an enterprise, and money laundering — all classified as felonies under state law. ADG Director Jackie Johnson emphasized the importance of this crackdown, 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.”
These charges are part of a broader crackdown on offshore gambling operators. The ADG’s enforcement is an effort to protect Arizona residents from illegal activities and uphold consumer protections that are absent in the unregulated gambling sector. In addition, the ADG warns residents to only engage with licensed operators that comply with Arizona's regulations.
A Growing List of States Taking Action Against Bovada
Arizona is not alone in its fight against unlicensed offshore gambling. Over the past year, 16 states, including Massachusetts, Connecticut, Ohio, and Pennsylvania, have joined the list of jurisdictions targeting Bovada. The company has had to restrict access to its platform in these states, following similar cease-and-desist orders issued by state regulators. Michigan led the way in May 2024, with other states quickly following suit.
Despite these state-led efforts, Bovada has been quick to comply by restricting access in the affected areas. However, some offshore operators still manage to evade enforcement, taking advantage of gaps in state-level regulations. Many critics argue that the federal government must take stronger action to address the issue of unlicensed offshore gambling, as current enforcement by individual states remains fragmented.
The Impact on Arizona Players
Arizona legalized sports betting in September 2021, creating a regulated environment with licensed operators. The state’s gambling laws provide protections for players, ensuring that they are shielded from fraud and other risks that are common in the unregulated market. The ADG urges Arizona residents to gamble only on state-approved platforms to guarantee access to these protections.
In addition to issuing the cease-and-desist order, the ADG maintains a public list of licensed operators on its official website, making it easier for residents to identify legal gambling options. The department also cautions against fraudulent sites and scams that aim to steal personal information from unsuspecting players.
Bovada’s Continued Presence in the U.S.
While Arizona’s crackdown on Bovada is significant, the operator remains a major player in the broader offshore gambling market. Bovada is one of many offshore sportsbooks that have drawn the attention of U.S. regulators. The American Gaming Association (AGA) has long advocated for federal action against illegal operators, citing the estimated $64 billion that U.S. bettors wager annually with offshore sportsbooks.
The AGA’s efforts were echoed by state legislators in 2022, who joined the call for stronger federal oversight. The U.S. Department of Justice (DOJ) has taken action in the past, including a major 2011 crackdown on online poker, but the overall response to offshore gambling remains limited. Until there is more comprehensive federal legislation, individual states, like Arizona, continue to lead the charge against illegal gambling operations.
The ADG’s cease-and-desist letter to Bovada is part of a larger push by Arizona and other states to eliminate unlicensed gambling platforms that pose risks to players and local economies. While Bovada has responded by restricting access in Arizona, the continued prevalence of offshore operators points to the need for stronger federal action. As Arizona works to protect its residents from illegal gambling, other states are following suit, and the pressure on federal lawmakers to address this issue continues to grow.
Source:Arizona Targets Bovada with Cease-and-Desist Order, LCB.org, December 3, 2024.