Massachusetts Sends Cease-and-Desist Order to Bovada

Massachusetts is cracking down on unlicensed gambling operations, putting offshore operator Bovada in its crosshairs. Bovada, a well-known offshore gaming provider, faces legal pressure as the state combats illegal online gambling. With potential fines looming, Bovada must halt its services in Massachusetts or face severe financial penalties.  This move signals a strict stance on illegal gambling, with further state enforcement actions likely to follow.

Massachusetts Demands Bovada Cease Operations: Offshore Operator Faces Legal Pressure

The State of Massachusetts has joined the growing list of states taking firm action against offshore gambling operators. On October 3, the Massachusetts Attorney General’s Office sent a cease-and-desist letter to Bovada, demanding that the unlicensed operator immediately cease its online gambling services in the Bay State. This move is part of Massachusetts’ effort to clamp down on illegal gambling operations, including online casinos, pari-mutuel wagering, and sports betting.

Massachusetts AG Takes a Stand

In its letter, the Massachusetts Attorney General highlighted the clear violation of state gambling laws. The letter stated that it is illegal to engage in commercial gambling within the state unless explicitly authorized by the Commonwealth. The attorney general cited specific violations, including the operation of an online casino featuring games like slots, blackjack, roulette, baccarat, and poker without a proper license issued by the state’s Gaming Commission.

Additionally, the letter referenced Massachusetts’ prohibition on unauthorized sports wagering activities. According to Mass. G.L. c. 23N, § 5(a), engagement in sports betting in the Commonwealth requires the appropriate licensing, which Bovada lacks. The letter also called out Bovada’s horse race betting services, stating that the company does not hold the necessary licenses under Mass. G.L. c. 128A or c. 128C.

Bovada Faces Potential Penalties

In recent months, Bovada has come under fire in various states for offering unlicensed gambling services. The company has already shuttered its operations in states like Michigan and New York following similar cease-and-desist orders. Massachusetts’ Attorney General has made it clear that Bovada must comply immediately or risk substantial penalties of up to $5,000 per violation. Given Bovada’s extensive operations, these fines could quickly accumulate into a significant financial burden if the company does not act.

The Broader Picture: Cracking Down on Illegal Operators

Massachusetts’ action against Bovada is part of a larger effort across the United States to combat illegal offshore gambling operations. Earlier this year, Michigan was the first to issue a cease-and-desist order against Bovada, setting the stage for other states to follow suit. On the same day Massachusetts issued its letter to Bovada, the Michigan Gaming Control Board (MGCB) also targeted Papaya Gaming, an offshore operator based in Tel Aviv, Israel, for conducting illegal gambling activities. Papaya Gaming was offering mobile games in Michigan that allowed players to buy-in and win real money, violating state gambling laws.

A Clear Message to Offshore Operators

The Massachusetts cease-and-desist order sends a strong message to unlicensed gambling operators: illegal online gaming will not be tolerated. As states like Michigan and Massachusetts ramp up enforcement, the pressure mounts on offshore operators like Bovada to either obtain proper licensing or exit the market. This growing crackdown not only aims to protect consumers but also ensures a level playing field for legal, licensed operators in the evolving US gambling industry. The actions of the Massachusetts Attorney General signal an increased focus on upholding state laws and protecting the integrity of the gambling market. With more states likely to follow suit, offshore operators will find it increasingly difficult to operate within the United States without proper authorization.