Posted on: October 25, 2024, 12:37h.
Last updated on: October 25, 2024, 09:22h.
Bovada, an illegal online casino and sports betting platform that targets players in the United States, has been fined $50K by a state agency in Tennessee.
The Tennessee Sports Wagering Council (TSWC) is responsible for regulating online sports betting and fantasy sports in the Volunteer State. On Wednesday, the state gaming regulator 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 have abided by the order and exiting Tennessee, state gaming officials say their investigators were able to continue making wagers on the Bovada sportsbook platform as recently as October 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 $10K fine for the first offense, $15K for a second offense, and $25K for subsequent offenses
If Bovada doesn’t immediately close its online sportsbook to people in Tennessee, the council is authorized to impose further $25K penalties.
Users Encouraged to Close Accounts
Though Bovada attracts US 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 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.
US 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 $50K 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 SWC 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 doesn’t have any commercial or tribal casinos.
Payment Unlikely
With Bovada’s offices 9,000 miles away from Tennessee, the odds seem long that the SWC should expect a $50K check anytime soon. Bovada primarily deals 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, DC, or West Virginia.
