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U.S. regulators are continuing to take action against unregulated forms of gaming, with enforcement officials in two states sending out cease-and-desist notices on Thursday (October 3).
Massachusetts joined a host of states that have ordered offshore sports betting and online casino operator Bovada to stop offering wagering in their state, with the state’s attorney general sending the operator a cease-and-desist letter.
“Since 2011, Bovada has presented itself as a legitimate American gambling operator, but without any proper Massachusetts license,” the attorney general’s office said in a statement.
“Unlicensed operators pose a substantial danger to consumers because they do not go through the same rigorous review as licensed operators, have limited or no protections against gambling addiction and underage play, and do not provide consumers with reliable access to their funds since most unlicensed operators are offshore.”
Bovada has already halted operations in several states in recent months following similar cease-and-desist notices from gaming regulators or law enforcement officials, including in Michigan, Connecticut, Ohio and Pennsylvania, among others.
The Michigan Gaming Control Board, which has been among the most aggressive U.S. regulators in targeting unregulated gaming operators, announced another enforcement action Thursday, sending a cease-and-desist letter to Israel-based mobile games developer Papaya Gaming.
An investigation by the board, which it said was prompted by an anonymous tip, found that the company was offering four games — 21 Cash, Bingo Cash, Bubble Cash, and Solitaire Cash — that violate state law by allowing players to buy-in and win real money through gameplay, constituting a form of illegal gaming.
“The Michigan Gaming Control Board firmly believes in a regulated and safe gaming environment,” MGCB executive director Henry Williams said in a statement. “Illegal gambling is not tolerated in Michigan, and we will take all necessary actions to protect our residents from such unlawful practices.”
According to Papaya’s terms of use, the company does not offer “cash competitions” in Arizona, Iowa, Louisiana, or South Carolina. Card-based games are also prohibited in Indiana, Maine and Montana.
Michigan was also one of the first states to take action not only against Bovada, but also sweepstakes and social gaming operators after sending letters late last year to three sweepstakes operators, including market leader VGW, ordering the companies to stop doing business in the state.
Connecticut followed suit with a cease-and-desist letter of its own to VGW that was sent in February. Last month, the company added the state to its list of excluded territories for Chumba Casino and Luckyland Slots, with Connecticut and Michigan now joining Montana and Washington among the company’s prohibited jurisdictions.
