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Bovada’s operator, Harp Media BV, has been ordered by the Michigan Gaming Control Board (MGCB) to stop doing business in the state. According to the MGCB, players from Michigan can access Bovada.com and Bovada.lv without the required licensing.
It is alleged that Harp Media BV broke many gaming regulations in Michigan. These consist of the Michigan Gaming Control and Revenue Act, the Michigan Penalty Code, and the Lawful Internet Gaming Act.
In Michigan, only authorized tribal casinos and those licensed under the Michigan Gaming Control and Revenue Act can operate online gaming or sports betting. Running an unlicensed gambling service is a felony. Offenders could face up to ten years in prison, a fine of up to $100,000 (£78,562/€92,276), or both.
The MGCB has given Harp Media BV 14 days from May 29 to block Michigan residents from using its services. Failure to comply will result in legal action.
Henry Williams, MGCB’s executive director, emphasized the broader message of the cease-and-desist order. “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,” Williams stated.
He added, “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.”
This crackdown on Bovada comes amid regulatory reforms in Curaçao, where Bovada is based. Curaçao is implementing the National Ordinance for Games of Chance (LOK) to improve its industry reputation. The region has been criticized for lax anti-money laundering (AML) rules and criminal activity.
Earlier this month, Michigan reported an 8.7% drop in online gaming revenue for April. Sports betting and iGaming operators in the state recorded $234.8 million in revenue for April, a decline from the previous month. Detroit’s casinos also saw a monthly revenue decrease of 11.7%, totaling $109.4 million.