Bovada Hit with $50K Fine In Tennessee, Unlikely To Settle Due To Offshore Status
Bovada, an illegal online casino and sports betting platform that targets players іn the United States, has been fined $50,000 by a state agency іn Tennessee.
The Tennessee Sports Wagering Council іs responsible for regulating online sports betting and fantasy sports іn the Volunteer State. On Wednesday, the state gaming regulatory took action against Bovada for operating an unlicensed and therefore illegal sportsbook.
The agency says Bovada failed to comply with a previously sent cease-and-desist letter. Despite claiming to abide by the order and have exited Tennessee, state gaming officials say their investigators were able to continue making wagers on the Bovada sportsbook platform as recently as Oct. 16.
Tennessee’s Sports Gaming Act warrants the council to impose fines on unlicensed sportsbooks illegally taking bets from bettors inside the state. The law authorizes a $10,000 fine for the first offense, $15,000 for a second offense, and $25,000 for subsequent offenses
If Bovada doesn’t immediately close its online sportsbook to people in Tennessee, the council is authorized to impose further $25,000 penalties.
Users Encouraged To Close Accounts
Though Bovada dupes U.S. consumers by marketing on its website that it’s a “top USA-based gambling and sports betting website,” nothing could be further from the truth.
The rogue offshore gambling network is run from its headquarters in Curacao, a Caribbean island friendly to iGaming companies. Bovada claims it operates lawfully online through an interactive casino and sports betting license issued by the Anjouan Gaming Board, a small volcanic island country between southeastern Africa and Madagascar in the Indian Ocean.
U.S. consumers who participate on sites like Bovada and other offshore online casinos and sportsbooks have no player protections like guarantees that their wins will be paid, withdrawals will be facilitated, and their account finances are secure. Along with issuing Bovada a $50,000 fine for violating Tennessee law, the council encouraged anyone in the state with an active account on the site to immediately withdraw their funds and close their account.
“The Sports Wagering Council recommends that Tennessee users of Bovada withdraw their funds immediately. Our primary role is the protection of the public interest through a safe, regulated environment, and Tennessee sports bettors need to know that just because they can access a sports betting website or app inside Tennessee’s borders does not mean it is licensed to do business here,” said Sports Wagering Council Executive Director Mary Beth Thomas.
“Legal sportsbook operators provide important bettor protections not found in the illegal market. If an individual wagers with unlicensed sportsbooks, their sensitive financial and personal information may not be protected and could even be shared with criminal enterprises. The bettor’s money could be withheld or disappear without a way to recover it,” the council’s statement added.
Tennessee is only home to mobile sports betting — not in-person wagering, as the state does not have any commercial or tribal casinos.
Payment Unlikely
Given Bovada’s offices located 9,000 miles from Tennessee, it’s unlikely the Sports Wagering Council will see a $50,000 payment soon, especially since Bovada mainly operates in cryptocurrency.
However, the state gaming agency says it’s “working closely” with a network of federal and state law enforcement agencies “to eradicate illegal sportsbooks such as Bovada and others.”
Bovada has received numerous cease-and-desist letters in recent months. On its website, the offshore gaming operator says it doesn’t accept bets or customers from Colorado, Connecticut, Delaware, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, Ohio, Pennsylvania, Washington, D.C., or West Virginia.
