Published on: September 24, 2024, 09:55h.
Last updated on: September 24, 2024, 10:07h.
Pennsylvania is now part of the effort against an illegal offshore online casino that caters to US bettors.
The Pennsylvania Gaming Control Board’s (PGCB) Office of Enforcement Counsel recently issued a cease-and-desist letter to Bovada, an offshore casino platform operating illegally in the US.
The regulatory action was taken after Bovada accepted sports bets on the Little League World Series last month in Williamsport, Pa., where the annual youth baseball championship is held. Betting on youth sports is not allowed in any legal sports betting jurisdiction in the US.
Bovada claims to operate legally under the online gambling license it holds from the Anjouan Offshore Finance Authority. Anjouan is an autonomous volcanic island part of Comoros off Southeastern Africa. Bovada is based in Curacao, a Caribbean nation with favorable regulations for online gaming.
Expanding Ban
Pennsylvania is among the states directing offshore gambling websites like Bovada to stop granting access to their online gaming options to residents. State regulators argue that these platforms lack consumer protection and responsible gaming measures.
In addition to Pennsylvania, Bovada has restricted players from several other states on their website, such as Colorado, Connecticut, Delaware, Washington, DC, Kansas, Louisiana, Maryland, Nevada, New Jersey, New York, Ohio, and West Virginia. Six of these states have legal iGaming, but Bovada is not licensed to operate in any of them.
The seven states where iGaming is legal, including Rhode Island, continue to see revenue growth.
In 2023, legal online casinos generated a record $6.17 billion in gross gaming revenue, up nearly 23% from the previous year. With the addition of Rhode Island and other states, 2024 is expected to set a new revenue record.
Offshore Concerns
The American Gaming Association (AGA) represents legal gaming industries in the US and calls for action against offshore operators like Bovada.
The AGA urges state regulators and lawmakers to combat illegal gambling entities and enforce laws to protect consumers. They specifically target major offshore operators like Bovada, MyBookie, and BetOnline.
According to AGA President and CEO Bill Miller, “Illegal operators are on notice: their days of harming our nation are numbered. These bad actors exploit vulnerable customers and offer no consumer protections, fair play, or economic benefit for states.”
The AGA estimates that Americans wager over $400 billion annually on illegal sportsbooks and iGaming sites, resulting in significant tax revenue losses.