Bovada Exits Two More Markets Amid Increasing Pressure from Regulators

The losses keep adding up for Bovada Sportsbook.

Just a week after exiting West Virginia, Bovada announced that it is also restricting customers in Washington, D.C., and Connecticut. The decision to exit both markets means that Bovada is now restricted in 10 states, though that number has been rising fast.

Bovada’s issues in the US have been caused by several states sending them cease-and-desist letters demanding they exit the market. While the states cannot legally retaliate against Bovada, the US government can. The possibility of that legal battle has driven the offshore sportsbook to comply with the demands.

While Connecticut had confirmed they sent Bovada a letter back in June, there is no record of DC doing so. If a letter wasn’t sent, it would be the first time the offshore bookmaker exited a market without the threat of legal action.

The exit from both markets means that Bovada Sportsbook is now restricted in the following states:

• Colorado

• Connecticut

• Delaware

• Maryland

• Michigan

• New Jersey

• New York

• Nevada

• Washington, D.C.

• West Virginia

Bovada Could Be Out of US Within a Year

The latest round of restrictions means more legal threats are likely on the way for Bovada. 

It all started with Michigan sending a cease-and-desist letter to Bovada in May, demanding they exit the market within two weeks. The move drew national attention as people waited to see how Bovada would react. The operator quietly exited the market within two weeks, complying with the state’s demand.

Since deciding to restrict its sportsbook in Michigan, Bovada has seen a quick increase in similar letters from other states. Regulators across the country have been pushing to close offshore books to protect consumers and revenue. With Bovada not fighting requests to exit, a flurry of other states have followed Michigan’s lead.

We expect the latest round of closures to lead to even more cease-and-desist letters from other states. That will be especially true if it turns out D.C. did not send an official letter threatening legal action.

Bovada could still decide to draw a line in the sand and force states to call on the federal government to take action. If they don’t, we may see a full exit from the US sports betting market for Bovada.