Michigan Moves to Block Bovada as War on Offshore Sites Gathers Pace

The Michigan Gaming Control Board (MGCB) has announced that it has issued a cease and desist letter to Harp Media B.V., the company that operates online betting sites Bovada.com and Bovada.lv.

In its statement, the MGCB said that Bovada is in violation of local gaming laws including:

• Lawful Internet Gaming Act
• Michigan Gaming Control and Revenue Act
• Michigan Penal Code

It goes on to outline that Bovada is not a state-licensed internet gaming operator and not recognized as lawful by the state of Michigan as per the Lawful Internet Act. It also notes that any gambling operations in the state are prohibited unless licensed under the Michigan Gaming Control and Revenue Act.

The company is in breach of the state’s penal code as it prohibits any from of gambling.

Harp Media B.V. now has 14 days to take action to prevent people in Michigan from accessing its gambling websites. If it fails to do so, the MGCB will take further legal action.

Speaking of the move MGCB Executive Director Henry Williams said:

“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. 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 is not the first time that states have moved against offshore gambling sites. In 2022, New Jersey sent cease and desist letters to multiple gambling operators. Following the move, the majority of non-state licensed sites removed access to their products within the Garden State.

Michigan has the lowest effective tax rate for sports-betting in the US at 5.2%

Bovada stopped accepting customers in New York state in June 2021 as a result of the newly introduced regulation and restrictions on players within the state.

In 2023, gambling regulators in seven states, Nevada, New Jersey, Michigan, Illinois, Colorado, Mississippi, and Louisiana wrote to U.S. Attorney General Merrick Garland asking for help in their efforts to block illegal offshore betting.