Michigan Orders Online Gaming Platform Bovada to Exit the State

The Michigan Gaming Control Board (MGCB) is recognized as one of the most proactive regulatory authorities in the United States in enforcing online gambling laws. Consistently taking decisive action, the MGCB ensures compliance with both state and federal regulations, aiming to protect consumers, ensure fair play, and secure economic benefits for the state.

Enforcement Action Against Bovada

On May 30, the MGCB announced a significant enforcement action against Harp Media B.V., the operator of Bovada, an online gambling platform not licensed in the US.

Following an investigation, the MGCB sent a cease-and-desist letter to Bovada, determining that the platform's operations violated the US Lawful Internet Gaming Act and various Michigan state laws. Bovada has been given 14 days from the receipt of this letter to cease allowing Michigan residents to gamble on their platform or face potential legal action.

Reasons Behind MGCB’s Strict Enforcement

The MGCB emphasizes several reasons for its stringent enforcement actions against unlicensed online gambling operators:

• Consumer protection: Licensed operators are subject to rigorous regulatory oversight, ensuring fair games and guaranteed payouts.

• Responsible gambling: Regulated platforms implement measures to help individuals manage or limit their gambling activities.

• Economic impact: Unlicensed operators deprive the state of potential revenue from taxes and fees that fund public services.

The operation of unlicensed gambling platforms like Bovada has adverse economic implications for Michigan, representing a substantial loss of potential income that could support public initiatives.

Challenges in Enforcing Compliance

Enforcing compliance against foreign-based companies like Harp Media B.V. poses substantial challenges.
The MGCB’s authority is limited to Michigan, and they cannot directly regulate or enforce actions against companies based abroad, such as in Curaçao.

To address this, the MGCB can:

• Seek assistance from the government of Curaçao;

• Collaborate with the US federal government;

• Leverage precedents where other unlicensed operators withdrew following MGCB action.

Notably, companies such as Virtual Gaming Worlds have previously ceased operations in Michigan after similar warnings.
Bovada, which withdrew from New York after the state legalized online sports betting, may again comply under similar circumstances.

Despite these precedents, Bovada has not yet restricted its operations in Michigan since the state legalized online casino play in 2021. The outcome of this enforcement action could set a significant precedent for future regulatory measures.

If Bovada complies with the cease-and-desist order, it will help create a safer and more transparent online gambling environment in Michigan, reinforcing the importance of operating only through licensed and regulated platforms.

The MGCB’s actions serve as a strong deterrent to other unlicensed operators and reaffirm Michigan’s leadership in regulatory enforcement.