The Washington State Gambling Commission has sent a second cease-and-desist letter to Bovada after the offshore operator ignored its first.
The state gaming regulator announced it has followed up on its first C&D after the company failed to comply with demands to immediately cease operating in the state.
A commission spokesperson confirmed to SBC Americas that it sent the first enforcement letter to Bovada on Jan. 10 but has not had any communication with the operator since, and said that the site is still operating in its market without approval.
“Our investigation determined that Bovada allows Washington residents the opportunity to stake something of value on future contingent events for the opportunity to receive something of value, which meets the definition of gambling,” said the commission in a public statement. It alleged that Bovada has committed violations including a Class C felony by transmitting gambling information over the internet.
In many states, Bovada did not directly respond to C&Ds but removed access to users in those jurisdictions. It has left 17 states plus D.C., mostly in that fashion. Last year, Tennessee’s Sports Wagering Council fined the oeprator $50,000 after saying that the Caribbean operator ignored multiple C&Ds, although it’s unclear whether the regulator was able to collect that fine.
The Washington spokesperson said that the commission would explore its enforcement options and work with law enforcement partners, including other states and at the federal level, for a solution if Bovada continues to ignore its letters.
Washington watching Polymarket closely
All in all, the Washington State Gambling Commission has sent C&Ds to 15 operators that it deems to be offering illegal gambling in the state.
The majority of those were offshore casinos or sportsbooks similar to Bovada, including Betonline.ag, betanysports.eu, betUS.com.pa and mybookie.ag. Also included in the list provided to SBC Americas were PropSwap and WagerWire, two self-described marketplaces that allow users to buy and sell sports betting tickets.
The commission has also taken action against Polymarket, the cryptocurrency-based prediction market that is gearing up to officially re-enter the U.S. At the time that Washington sent a C&D to Polymarket, back in February 2021, the company was not supposed to be taking American customers.
However, the CFTC and the Department of Justice (DOJ) have since ended their investigations into the company and Polymarket acquired CFTC-licensed exchange and clearinghouse QCEX in July. The company said in early September that the Commodity Futures Trading Commission has cleared it to offer “legal sports betting” in all 50 states.
The Washington spokesperson said that, while the commission views “prediction markets that allow wagers on sports, politics, etc.” as not authorized in Washington, it understands that the future of prediction markets remains a subject of ongoing litigation and will continue to monitor ongoing cases as they progress through the court system.
