Bovada's Canadian Olympic Star Ordered to Retreat by Michigan and Connecticut
In the year 1984, Canadian kayaker Alwyn Morris won an Olympic gold medal and became a renowned Indigenous sports figure by paying tribute to his Mohawk Nation heritage with an eagle feather salute on the podium. He was also bestowed the honor of being a Member of the Order of Canada for his athletic achievements and humanitarian efforts.
Now, Morris is one of the proprietors of Bovada, the most popular offshore online gambling platform that caters to US bettors. This week, Connecticut and Michigan urged Bovada to halt their activities or face potential legal action.
The Connecticut Department of Consumer Protection Gaming Division (DCP) informed Sports Betting Dime that they would dispatch a cease-and-desist letter to Bovada in the upcoming days. Similar warnings were sent by the Michigan Gaming Control Board (MGCB) on May 29. The company had 14 days to terminate its services in the state or face legal repercussions.
Violation of State Laws
Since these two states have authorized and monitored internet gambling, Bovada's ongoing presence there is considered an illegal, unregulated operation.
In the past, Bovada committed to steer clear of players residing in Delaware, New Jersey, New York, Maryland, and Nevada after these states passed legislation barring unlicensed providers.
MGCB informed Sports Betting Dime that in their opinion, Bovada was contravening the state's legal standards.
Specifically, they were breaching the Lawful Internet Gaming Act and Michigan Gaming Control and Revenue Act, which prohibit internet gambling without a license from the state, and the Michigan Penal Code, which criminalizes unlawful gambling.
Concealed Ownership
Bovada sprang from Bodog, the pioneering international gaming brand founded by Calvin Ayre. The Canadian launched the company in 2000, a time when the US didn't have accessible online gaming permits and the legality of the offshore industry was murky.
Bodog generated Ayre a fortune, but he sold the US-facing arm of the business following the implementation of the federal Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, which prohibited financial institutions from accepting online gambling wagers.
Ayre claims to be retired from the gambling business now, solely concentrating on cryptocurrencies. He sold the online gaming division to the Morriss Mohawk Gaming Group (MMGG), a business stationed in the Kahnawake Mohawk Territory in Quebec. Morris is the founder and CEO of MMGG.
In 2009, MMGG renamed itself Bovada and transferred Bodog's clients to a refreshed platform. Sometime around 2017, a company called Harp Media BV invested in the company. Located in Curacao, the ownership arrangement of Harp Media is impenetrable.
Legal Challenges
In February 2012, the US Immigrations and Customs Enforcement Agency seized the Bodog.com domain for supposed unlawful gambling operations, even though the site was inactive at the time.
Concurrently, despite having officially retired from the industry, Ayre was charged by the Maryland US Attorney for criminal gambling and money laundering. In 2017, he pleaded guilty to a single misdemeanor charge; the other charges were revoked.
In August of the prior year, MMGG, Alwyn Morris, Calvin Ayre, and Harp Media were identified in a proposed class-action lawsuit instigated by Kentucky resident Billi Jo Woods. She alleges that the defendants profited from illegal betting in the state and seeks to reclaim her losses.
In 2010, Kentucky invoked the Loss Recovery Act, a 200-year-old law developed to safeguard the families of impoverished gamblers, to file a lawsuit against PokerStars for offering unlawful gambling. PokerStars settled the claim for $300 million after a ten-year conflict.
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