Michigan Regulators Give Bovada Two Weeks to Stop Taking Bets from State Residents

The Michigan Gaming Control Board (MGCB) announced Thursday that it had issued a cease-and-desist letter to online gambling operator Bovada, which the regulator says is illegally offering gaming options to Michigan residents.

The letter, which was sent to Bovada parent company Harp Media B.V., was sent on May 29, and gives the company 14 days to prevent Michigan residents from gambling on Bovada’s websites. Should Harp Media fail to do so, the MGCB says it will take further legal action.

Michigan Accuses Bovada of Violating Multiple Laws

According to a statement released by the MGCB, Harp Media is in violation of at least three Michigan gaming laws:

• The Lawful Internet Gaming Act, which only allows licensed operators to offer internet gaming in the state.
• The Michigan Gaming Control and Revenue Act, which prohibits parties from conducting gambling operations without a license.
• The Michigan Penal Code, which prohibits any form of gambling, outside those that are expressly permitted by state. 

The statement cites both Bovada.com and Bovada.lv as sites that are in violation of Michigan’s laws.

“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,” Henry Williams, executive director of the MGCB, said in a statement. “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.”

Harp Media is based out of Curacao. Through it’s Bovada websites, it offers casino, poker, and sports betting offerings in many American states. However, Bovada has pulled out of some markets due to regulatory concerns, such as Nevada and New York. 

Bovada was launched in 2011 as a rebrand of Bodog, which itself was launched in 2000 by soon-to-be billionaire Calvin Ayre. 

Michigan Regulators Crack Down on Rogue Operators

This isn’t the first time that Michigan regulators have cracked down on gambling options in their state. 

Last October, state legislators accepted changes suggested by the MGCB that prohibited daily fantasy sports options that mimicked proposition bets. Specifically, the new rules outlawed contests in which users predicted whether a specific statistical achievement would occur during an event, such as Over/Under bets on points in basketball or passing yards in football.

This January, the MGCB announced that it was sending cease-and-desist letters to athlete stock market PredictionStrike, as well as sweepstakes companies Sweepstakes Limited, and VGW LuckyLand, in an effort to crack down on unlicensed operators in the state.

“We do not want businesses who skirt the law having access to Michigan citizens and leaving them vulnerable because they are playing on unregulated sites that leave them with no recourse, and that siphon funds away from communities because they are not paying taxes like a regulated, legal gambling establishment would,” Williams in a statement announcing the January letters.

Michigan’s latest efforts to move unregulated operators out of its market come as the state continues to produce strong online gambling revenues. In April, Michigan reported $234.8 million in online gaming revenue, up 20 percent year-over-year compared to $195.7 million in revenue in April 2023.