Offshore casino operators like Bovada continue to deal with restrictions in the US online gaming space. Arizona is the latest state to issue a cease and desist order to Bovada, and the Arizona Department of Gaming alleges that Bovada is just "a fancy criminal enterprise running an illegal gambling business in violation of state law."

The Arizona Department of Gaming has intensified its efforts to combat illegal gambling by shutting down the operations of Bovada, a prominent offshore casino operator, within the state. This action marks Arizona as the 17th jurisdiction in the US to issue a cease-and-desist order to Harp Media B.V., the Bovada’s parent company, headquartered in Curacao.

In a press release, the ADG described Bovada as a "felony criminal enterprise" running an illegal gambling operation in violation of state laws. The agency accused Bovada of promoting unlawful gambling, operating an illegal enterprise, and engaging in money laundering - charges that collectively amount to felony offenses.

Protecting Arizona's communities

Jackie Johnson, ADG Director, emphasized the importance of maintaining the integrity of the state's gaming industry. "We are actively monitoring the evolving landscape of online gaming, and taking proactive steps like this helps us protect Arizona's communities and economy from illegal activities," she said. "Our enforcement team is committed to preventing unauthorized operations from establishing a foothold here. Arizona will not be a safe haven for unlicensed or unlawful gaming."

The cease-and-desist order states that Bovada immediately terminate its online gambling activities in Arizona. In compliance, Bovada has updated its website to include Arizona on its restricted market list.

The growing issue of offshore gambling

Illegal offshore gambling platforms, like Bovada, have long been a thorn in the side of the regulated gaming industry in the United States. These websites, which often operate without proper licenses or oversight, attract players from states where online casino gaming remains prohibited.

Bovada, previously known as Bodog, is one of many offshore operators that have targeted US players. By offering unlicensed slots, table games, and sports betting, Bovada has skirted regulations while evading licensing fees and taxes. State gaming regulators across the US are increasingly clamping down on such enterprises. Bovada has already been banned in 16 states and Washington, DC as authorities seek to curtail illegal gambling operations and protect consumers.

However, a new challenge has emerged in the form of sweepstakes casinos. These platforms claim to operate as social gaming sites offering free-to-play games, but they also allow users to purchase secondary digital currencies. These currencies can be used to play games and redeemed for real cash, blurring the line between legal and illegal gambling.

Risks to consumers

Gaming regulators warn that offshore gambling platforms and sweepstakes casinos lack essential consumer protections. Unlike licensed operators, these entities do not guarantee fair play or provide secure methods for withdrawing funds.

In states where online gambling is legal, such as New Jersey, Connecticut, Pennsylvania, Michigan, Delaware, West Virginia, and Rhode Island, regulators enforce strict oversight to ensure player safety. Legal platforms are required to adhere to consumer protection standards, including transparency and responsible gaming measures. State gaming boards, including Arizona's, publish lists of authorized and regulated platforms to guide players toward safe gambling options. Arizona residents can access these resources to avoid falling prey to illicit operators.

Legal operators face unfair competition

The presence of unlicensed operators like Bovada poses a significant challenge to the legal gaming industry. Reputable companies, including BetMGM, DraftKings, and FanDuel, have invested millions of dollars in licensing fees and taxes just to comply with US regulations. In contrast, offshore platforms evade these obligations, creating an uneven playing field and depriving states of critical tax revenue.

By taking decisive action against Bovada, Arizona joins a growing coalition of states committed to curbing illegal gambling. This crackdown serves as a reminder of the ongoing battle between regulated gaming operators and the shadowy world of offshore gambling - a battle aimed at safeguarding the integrity of the industry and protecting consumers nationwide.