Bovada Bows to Pressure, Shutter Operations in Colorado and Michigan

Written by: Michael Savio
Published June 25, 2024
2 min read
Bovada Shutters Operations in Colorado and Michigan

Regulated Sportsbooks have scored a significant victory in the Wolverine and Rock Mountain States.

Bovada Sportsbooks, an offshore operator, has announced that it has shuttered its operations in Colorado and Michigan. The move comes after regulators from both states threatened Bovada with legal action if it did not exit their markets. The offshore sportsbook had been silent in response to those requests, but their recent announcement confirms that they will not fight the request.

Bovada has been a major offshore sportsbook in the US, operating in a so-called “grey market.” Before sports betting became legal in the US, many states turned a blind eye to offshore operators, allowing residents to use the platforms at their own risk. However, states that have legalized the industry are pushing sites like Bovada out to protect their regulated markets. 

While Bovada has complied with requests to exit states so far, there was some question about whether they would do so in both states. That’s because individual states have no legal recourse against offshore operators. They would need intervention from the US Justice Department, which has diplomatic implications. 

The decision to exit Colorado and Michigan shows that Bovada is unwilling to risk a legal battle, but that could change. As of today, they have been forced to exit markets in Nevada, New Jersey, New York, Maryland, Delaware, Michigan, and Colorado. 

Connecticut Awaits Response from Bovada

The Connecticut State Department of Consumer Protection recently sent a cease-and-desist letter to Bovada, telling them to shut down operators or face further legal action. The move came soon as Michigan sent their letter, but Bovada has yet to respond. Their platform is still live in the state and does not include any language about exiting the market.

Given the small market, many expect Bovada to exit. However, the operators’ unwillingness to fight these requests may not last. Their market share in the US is shrinking fast, and complying with these letters will only speed up that process. While Bovada has a massive global presence, cutting out the US will be a major hit to its revenue. If they feel like all is lost, they could force federal intervention.

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Michael Savio

Sports Betting Analyst

Gambling News
Online Sports Betting
Michael is an avid sports fan and a veteran bettor from Milwaukee. He learned the trade from his grandfather in Las Vegas as a kid and has turned that into a successful career. He cheers for all Wisconsin pro teams along with his Alma Mater Arizona State. He specializes in baseball betting, but has experience in football, basketball, and hockey as well. When he isn’t pouring over stats, he’s spending time with his two young children.
Nationality: American
Education: Bachelor of Political Science
Favourite Sportsbook: Caesars Sportsbook
Favourite Casino: BetMGM Casino
3 years
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