Massachusetts Orders Bovada to Halt Illegal Gambling Activities
The Massachusetts Attorney General's Office (AGO) has taken action against Harp Media B.V. and Hove Media, the entities behind Bovada, for operating an online gambling platform within the state without a proper license. The AGO has issued a cease-and-desist letter demanding that Bovada immediately stop its operations in Massachusetts.
The letter accuses Bovada of offering casino games and sports betting services without authorization from the Massachusetts Gaming Commission, which is required by state law. Additionally, it claims that Bovada misled residents by portraying itself as a "USA-based" gambling operator, in violation of Massachusetts consumer protection laws under Chapter 93A. The letter demands that the company not only cease its operations but also refund its Massachusetts customers in U.S. dollars.
Bovada has marketed itself as a legitimate U.S. gambling operator since 2011, but it operates offshore from Curaçao without a Massachusetts license. As an unlicensed entity, Bovada does not meet the regulatory requirements necessary to protect consumers, such as ensuring safeguards against underage gambling or providing reliable access to funds. This lack of oversight poses risks to consumers who gamble on unlicensed platforms.
Tackling Gambling-Related Harms
This action aligns with Attorney General Andrea Joy Campbell's broader efforts to mitigate the harmful effects of gambling. Earlier in 2024, AG Campbell established the Youth Sports Betting Safety Coalition, a public-private initiative aimed at educating the public about the dangers and laws surrounding youth sports betting.
The cease-and-desist order was handled by key members of the AGO, including Chief Jared Rinehimer of the Data Privacy and Security Division, Assistant Attorney General Louisa Gibbs from the Gaming Enforcement Division, and Assistant Attorney General Alda Chan from the Consumer Protection Division. The Massachusetts Gaming Commission, which partially funds the Gaming Enforcement Division, also played a role in addressing this issue.
Bovada Faces Growing Legal Pressure
Massachusetts is the latest state to take action against Bovada. Over the past few months, other states such as Pennsylvania, Kansas, Louisiana, Michigan, and Connecticut have also issued similar orders, forcing Bovada to withdraw from these markets. Despite the enforcement actions, Bovada has not responded directly to state regulators but has quietly added more jurisdictions to its list of restricted regions.
This pattern mirrors the company's strategy in other states where it faced similar legal challenges. Bovada, rather than engaging with authorities, tends to limit its service to users in affected states.
Massachusetts Expands Legal Gambling Offerings
While cracking down on unlicensed operators like Bovada, Massachusetts is also expanding its regulated gambling options. In the summer of 2024, Bally Bet entered the state and its growing online sports betting market, and the state's 2025 budget, recently signed by Governor Maura Healey, includes provisions to legalize online lottery sales and e-instant games. The Massachusetts State Lottery Commission is preparing to select an operator for these newly authorized services.
Source:
Massachusetts Attorney General Issues Cease-and-Desist to Bovada for Unlicensed Gambling, lcb.org, October 7, 2024.