Bovada Limits Customers in West Virginia Amid Grey Market Crackdown

Bovada’s footprint in the US continues to shrink.

The offshore online casino and sportsbook operator has agreed to end operations in West Virginia. The move comes a couple of weeks after the state sent Bovada a cease-and-desist letter demanding they exit the market. The Bovada casino and sportsbook are now restricting players in the Mountain State.

West Virginia marks the third market in which Bovada has been forced to exit over the previous two months. Michigan and Colorado took similar steps a few weeks before West Virginia, threatening legal action if operations were not shut down within 14 days. 

Many legislatures have been calling for a crackdown on the so-called “grey market” where offshore entities like Bovada operate. The market has existed in the US long before sports betting became legal, with many states choosing to tolerate the operations of offshore casinos and sportsbooks. With both industries now legal and growing in the US, states have decided to remove the market to ensure they receive all tax revenue.

Bovada Setting Precedent for Other States

While all three states threatened legal action, many questioned whether they had the power to enforce them. States do not have the ability to prosecute offshore operators like Bovada, needing the federal government to do so on their behalf. Even if they agreed, how much they could enforce any penalties is unknown.

Bovada is one of the biggest offshore brands, making it a popular target as states crack down on the grey market. Their decision to voluntarily cease operations gives state regulators more confidence, leading to a spike in cease-and-desist letters. 

After its exit from West Virginia, Bovada is now restricted in the following states:

• Colorado

• Delaware

• Maryland

• Michigan

• New Jersey

• New York

• West Virginia

That leaves Connecticut and Pennsylvania as the online states with legal online casinos that have not forced Bovada out. However, the recent activity and Bovada’s compliance could change that soon.