Bovada Exits Arizona Sports Betting Market After Legal Threats

Bovada Sportsbook’s US market continues to shrink. 

The offshore sportsbook officially added Arizona to its restricted list this week. The move came after Copper State sent the operator a cease-and-desist letter threatening legal action if the platform wasn’t shut down. While Bovada didn’t respond to the letter, the move shows they are unwilling to fight the request.

The exit from Arizona further reduces Bovada’s presence in the country. Over the last year, the operator has received a flurry of cease-and-desist letters from different markets. States cannot pursue legal action against offshore operators but can request help from the federal government.

The first round of letters was a test for the sportsbook. Given the limited legal options for regulators, the country watched to see if Bovada would disregard the request. Instead, the company decided to comply with the requests without pushback. Other markets followed suit, with Bovada complying with each. 

There are now a total of 17 markets on Bovadas’ restricted access list:

• Arizona

• Colorado

• Connecticut

• Delaware

• Kansas

• Louisiana

• Maryland

• Massachusetts

• Michigan

• Nevada

• New Jersey

• New York

• Ohio

• Pennsylvania

• Tennessee

• Washington, D.C.

• West Virginia

Mounting Concerns Over Offshore Operators

The money generated from legal sports betting markets is the driving force behind the effort to push out Bovada. Offshore books don’t pay taxes like other operators, meaning states don’t see revenue from them. That hurts not only the states but also authorized sportsbooks. 

Another concern cited by lawmakers is the dangers of using unregulated sportsbooks. The lack of regulations means players are essentially on their own. If there is a problem, there is no support to help ensure offshore operators offer a fair gaming experience.

Offshore bookmakers also don’t hlacksible gaming guidelines, rarely limiting players or flagging accounts where problem gambling may be occurring.