Michigan regulator targets offshore sportsbook Bovada with cease-and-desist order

The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist letter to Harp Media B.V., the operator of Bovada.com and Bovada.lv, demanding the cessation of "illegal online gaming activities accessible to Michigan residents."

The letter, sent on May 29, follows an MGCB investigation into Bovada's operations. The Curaçao-based company has 14 days from receipt of the order to cease operations in Michigan or face legal action.

“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,” said MGCB Executive Director Henry Williams.

“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.”

Bovada, which the MGCB deems an unregulated and unlicensed online gaming provider, is in violation of several Michigan laws, as per the Board. These include:

• Lawful Internet Gaming Act: This act restricts internet gaming to licensed operators. Only state-licensed casinos and federally authorized tribal casinos can apply for such licenses.
• Michigan Gaming Control and Revenue Act: This law prohibits unlicensed gambling operations, with violations punishable by up to 10 years in prison, a fine of up to $100,000, or both.
• Michigan Penal Code: This code broadly prohibits any form of gambling involving elements of consideration, prize, and chance.

The MGCB urges Michigan residents to verify the legality of online gaming sites before participating and to report any suspicious or unlicensed gambling operations. A list of licensed internet gaming providers is available on the MGCB's website.

Bovada has seen itself removed from five markets previously, marking Michigan as the sixth to push for its removal. Delaware, New Jersey, New York, Maryland, and Nevada have also banned the offshore book.