Bovada Exits Three More U.S. States Amid Offshore Betting Crackdown
Bovada Exits Three More U.S. States Amid Offshore Betting Crackdown
Offshore sportsbook Bovada has officially withdrawn from Kansas, Louisiana, and Pennsylvania, adding them to its growing list of restricted markets, which now totals 13 U.S. states along with Washington, D.C. This move follows cease-and-desist letters from state regulators who are cracking down on illegal operators in the online gambling space. Kansas, Louisiana, and Pennsylvania join other states like Michigan and Ohio in successfully pushing Bovada out of their jurisdictions as part of a broader effort to protect consumers and regulate sports betting more effectively.
State gaming regulators, such as the Kansas Racing and Gaming Commission (KRGC) and the Pennsylvania Gaming Control Board (PGCB), issued these orders earlier this year. In Kansas, the KRGC sent its notice in July, with Bovada adding the state to its restricted list only in August. Pennsylvania followed suit at the end of August, sending its own notice demanding Bovada cease operations.
This is part of a broader campaign by U.S. states to eliminate illegal offshore operators, which do not offer the same protections or guarantees as regulated sportsbooks. James Bain, enforcement attorney for the KRGC, emphasized the need for protecting Kansas bettors, stating, "Our main goal is to ensure that the betting public is playing on licensed, regulated, and taxed sites." Similar sentiments were echoed by Louisiana Gaming Control Board Chairman Christopher Hebert, who criticized Bovada for violating state gaming laws and allowing residents to place wagers illegally.
The Bigger Picture
Bovada's exit from these states is part of an ongoing struggle between U.S. regulators and offshore gaming brands, which operate without proper licensing and oversight. While Bovada is no longer accessible in 13 states, the offshore betting market remains a significant issue nationwide. The IRS estimates the illegal sports betting market to be worth around $700 million, underscoring the challenges regulators face in curbing these operations.
As more states legalize and regulate sports betting, the pressure on offshore operators like Bovada has intensified. The American Gaming Association (AGA) has been vocal in calling for federal action to address illegal offshore operators. Despite these recent victories in removing Bovada from several markets, the broader fight to regulate the sports betting landscape continues, with offshore operators remaining a persistent concern for U.S. authorities.
What's Next?
States like Massachusetts are considering further action against Bovada and other illegal operators but have yet to issue their own cease-and-desist letters. As Bovada continues to restrict access in more states, the question remains whether federal authorities will step in to tackle the offshore betting issue nationally. For now, Bovada's operations remain active in many U.S. jurisdictions, though their footprint continues to shrink.