Illegal offshore online casino and sportsbook operator Bovada is not welcome in Connecticut anymore.
The state sent the operator a cease-and-desist letter in mid-June and, based on Bovada’s public list of restricted states, it worked. Bovada is no longer available to bettors in Connecticut, a move that protects consumers from unregulated gaming and legal online casinos from losing customers to offshore sites.
Key takeaways
- After offering its unregulated gaming platform to Connecticut online casino customers, Bovada has ceased operations in the state.
- Nine states and the District of Columbia have kicked out Bovada.
- States lose out on billions in tax revenue because of offshore sites
- The Bovada ban is an important one for a state that’s one of only seven with an active online casino market.
Why Connecticut took action against Bovada
Connecticut state law allows online gambling in Connecticut but only for operators that have earned a license to do so. Bovada did not have a license nor had it ever had a license to operate in Connecticut. As a result, the state’s Department of Consumer Protection and Director of Gaming Kristofer Gilman sent a letter to the operator demanding it cease its operations in the state.
“Bovada is hereby ordered to immediately cease and desist offering its games and services to Connecticut Customers,” the letter said.
Additionally, it asked Bovada to allow Connecticut customers to withdraw funds from their accounts, thereby avoiding a situation in which Bovada shuts down accounts before customers have a chance to get their money.
More states are pushing Bovada out of their borders
The news of Bovada’s Connecticut departure isn’t a surprise, as the operator has been kicked to the curb in nine states and the District of Columbia. In late June, West Virginia‘s lottery director, John A. Myers, sent a cease-and-desist letter to Bovada.
“The statutes and possible legal actions provided in this letter are by no means exhaustive; they are
intended to put you on notice that Bovada is in violation of West Virginia law,” he wrote. “Failure to comply with this cease-and-desist request within fourteen days of receipt of this letter may result in
heightened criminal and monetary fines.”
Soon afterward, West Virginia was added to Bovada’s public list of restricted states.
Other states that have banned Bovada this year include Michigan, one of the three biggest online casino markets in the country.
Why illegal casinos sites should be avoided
While offshore sites are illegal, it hasn’t stopped them from advertising on radio stations and online. Their promotions sound and look legitimate, putting at risk new bettors who may not know the difference between a legal and illegal online casino.
Legal online casinos like the ones in Connecticut are held to certain standards for customer security, gaming specifications, hiring and responsible gaming promotion. Because illegal offshore sites are not held to the same standard, customers could find themselves in a situation where a big win isn’t paid or their personal information is being used in ways they didn’t authorize.
Additionally, Connecticut residents lose out on valuable tax revenue when offshore sites thrive, since offshore sites don’t pay taxes on the revenue they generate in the state. States lose out on around $4 billion in tax revenue each year because of illegal offshore sports betting and online casino sites, according to a 2022 report from the American Gaming Association.
How will Bovada’s exit impact Connecticut iGaming?
With Bovada out of the state, Connecticut may see a bump in action on legal online casinos. However, it’s hard to pin down exactly how much of a difference it will make. Monthly and yearly revenue numbers are in constant flux, and about the only constants are that revenue declines after the winter an rises in the fall.
That being said, it will be interesting to analyze Connecticut’s July online casino revenue, as Bovada likely stopped operating in the state in late June.