Offshore Gambling Crackdown Continues, Arizona Latest to Send Cease Order

Posted on: December 3, 2024, 03:10h. 

Last updated on: December 3, 2024, 03:11h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

Illegal online gambling websites operating from offshore territories continue to face repercussions in the United States.

offshore gaming Bovada Arizona
The Arizona Department of Gaming has shut down Bovada within the state. Bovada is a well-known offshore casino operating illegally in the U.S. (Image: Casino.org)

Bovada, an internet casino platform that facilitates unlawful gambling in the U.S. from its headquarters in the Caribbean island of Curacao, is being ordered by state gaming regulators to cease operations. On Tuesday, Arizona became the 17th U.S. jurisdiction to send Harp Media B.V., the parent firm of Bovada, a cease and desist demand.

In a press release, the Arizona Department of Gaming explained that Bovada is alleged to be a felony criminal enterprise running an illegal gambling business in violation of state law. The gaming agency says Bovada is promoting unlawful gambling, is in control of an illegal enterprise, and is engaged in money laundering. All three violations are felonies.

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,” said ADG Director Jackie Johnson. “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, nor will we allow unlawful entities to compromise the integrity of gaming within our state.”

The ADG’s cease and desist instruction mandates that Bovada immediately cease all online gambling operations and activities in Arizona. Bovada obliged, as its website now includes Arizona as a restricted market. 

Offshore Gaming a Major Concern

The legal, regulated gaming industry continues to stress that the sector is threatened by illegal operators. Many offshore gaming websites like Bovada, which was formerly known as Bodog, target players in states where such online casino play isn’t allowed.

After years of running illegal slot and table games via the internet, with players facing little threat of prosecution for participating, state gaming officials are going after the illicit businesses. While Bovada is now banned in 16 states and Washington, D.C., another threat has emerged with sweepstakes casinos.

Sweeps claim they run social gaming or free-to-play fun money games. But that’s not accurate, as the apps allow players to purchase a secondary digital currency that can be used to play the interactive games and be redeemed for cash.

Gambling on computer or mobile slots and table games is only permitted through licensed online operators in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.

Gaming regulators continue to warn the public that gambling on an offshore casino website or sweeps casino lacks important consumer safeguards like fair play and the ability to withdraw funds. State gaming boards typically include a list of legal, regulated sites. Arizona does, and those platforms can be found here.

Banned Jurisdictions

Along with Arizona, Bovada has ceased operations in Colorado, Connecticut, Delaware, D.C., Kansas, Louisiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, Ohio, Pennsylvania, Tennessee, and West Virginia.

Companies like Bovada are the scorn of the legal industry, as operators like DraftKings, FanDuel, BetMGM, and other leading iGaming and/or mobile sports wagering apps and websites have paid many millions of dollars in licensing fees and taxes for their internet privileges. Bovada, meanwhile, pays no licensing fees or taxes in the U.S.