Bovada Hit With a Cease-and-Desist Order in West Virginia

Online casino gambling and sports betting are legal in West Virginia under the regulations set forth by the West Virginia Lottery Commission. If a Mountaineer were to play online casino games, they are free to do so through one of the online casino operators that are licensed by the Lottery.

Unfortunately, a large number of residents have continued using unlicensed offshore operators like Bovada. Bovada is worth mentioning because the Lottery has officially issued a "Cease-and-Desist" order to the operator's management. The order, which was issued in late June, called for the company to cease offering its online gambling services in West Virginia within two weeks of receiving the order.

Note: A copy of the order was received by PlayUSA.com after the company sent a Freedom of Information Act (FOIA) request.

Bovada's History of Issues in the U.S.

Long before online casino gambling was allowed anywhere in the U.S., Bovada was already building its U.S. online gambling base. The company often ran afoul of law enforcement in some states, though there was very little that could be done because the laws governing online gambling before May 2018 rested in a gray area.

Now, there is simply no reason for a resident in the six states that have legalized online casino gambling to take their activities offshore. Each state has licensed multiple online gambling operators that are reputable and trustworthy.

West Virginia is not the first state to go after Bovada. The same issue arose in Michigan just last year. When the state's regulators went after Bovada, the operator backed down and stopped taking bets from Michigan residents. Additionally, similar Cease-and Desist orders were sent in Colorado and Connecticut where compliance is expected. There is every reason to believe the company will take the same approach in West Virginia.

Why the Fuss?

Some people might question the reasonableness of shutting down offshore casino operations when said gambling activities have already been legalized. In fact, there are two viable reasons for making sure that offshore online gambling operators are denied access to a state's residents.

Reason one would be resident safety. As long as a resident uses a licensed online casino in West Virginia, they will have recourse should they have any issues with the operators. They would simply file a complaint with the regulator and the regulator would likely step in as a mediator. That same protection is not available when using offshore online casino sites. If the operator in question decides not to pay a jackpot, there is no legal recourse in the U.S.

The second issue is related to tax revenue. One of the primary reasons why U.S. states are passing online gambling legislation is to create a tax revenue stream to help manage statewide fiscal issues. Offshore operators don't pay taxes, effectively denying the state the tax revenue it would receive if a resident is using a licensed operator.

With compliance expected from Bovada's management, Bovada customers from West Virginia might want to begin the process of migrating their online gambling activities to a licensed operator.