Michigan Issues Cease-and-Desist Letter to Bovada

• The Michigan Gaming Control Board has issued a cease-and-desist letter to Bovada, an offshore online sportsbook and casino
• Bovada’s parent company, Harp Media B.V., is located in Curaçao
• Bovada operates unlicensed gaming services in several states across the country

This is definitely going to be something to keep an eye on.

The Michigan Gaming Control Board (MGCB) announced this morning it issued a cease-and-desist letter to Harp Media B.V., which operates the the offshore and unlicensed online sportsbook Bovada, on May 29.

The gaming control board sent the cease-and-desist letter to Harp Media B.V. for allowing its “illegal online gaming sites, Bovada.com and Bovada.lv” to be accessible by Michigan citizens.

14-Days to Take Action

The gaming control board has given Harp Media B.V. 14-days from the receipt of the letter to prevent Michigan residents from gambling on their websites, or the MGCB will take legal action against the company.

“The proliferation of online gaming platforms has led to increased scrutiny from regulatory bodies worldwide, and this action serves as a stern warning to overseas companies that flouting local regulations will not be tolerated,” MGCB Executive Director Henry Williams said. “The MGCB remains steadfast in its commitment to upholding Michigan’s laws and regulations and will continue to actively monitor and enforce compliance within the state to ensure a fair and secure gaming environment for all.”

The gaming control board claims Harp Media B.V. is in violation of several Michigan gaming laws:

• Lawful Internet Gaming Act: States internet gaming may only be offered by a licensed internet gaming operator
• Michigan Gaming Control and Revenue Act: Prohibits a party from conducting a gambling operations without a licensed issued by the MGCB. Parties operating unlicensed gambling operations in the state may face imprisonment for up to 10 years or a fine up to $100,000 or both
• Michigan Penal Code: Broadly prohibits any form of gambling, which generally involves the elements of consideration, prize, and chance. Such as, accepting money, or anything of value, with the understanding that money, or anything of value, will be paid to any person based on the outcome of an uncertain event is prohibited

The offshore, unlicensed sportsbook and online casino Bovada is widely available throughout the country, but has banned customers from Delaware, New Jersey, New York, Maryland and Nevada in recent years after the states passed legislation to curb their operation.

Michigan may be the next state Bovada decides to pull its gaming services.

MGCB Focusing on Illegal Gaming Operations

In 2023, the MGCB, through a partnership with the Michigan Attorney General’s Office, seized 79 machines used for illegal gambling, charged nine individuals with criminal gambling convictions, and arraigned 24 individuals on illegal gambling charges.

At the recent International Masters of Gaming Law 2024 Spring Conference, Williams made it clear that the state will continue to focus on dismantling illegal gaming operations both domestically and offshore.

“If people choose to ignore the law and don’t do what’s legal, we’re going to find them and hold them accountable for their actions,” he said. “In Michigan, the Michigan Gaming Control Board has made it a priority to do everything we can to protect our state’s citizens from illegal gambling market operators and our legitimate gaming industry from being tarnished by its illegal counterparts. We have a zero-tolerance policy towards illegal gaming activities