NEWSLETTER
Bovada, a prominent offshore casino, sportsbook, and its sister site Bodog, faces a class-action lawsuit in Kentucky, signaling a significant legal battle in the ongoing struggle against unregulated online gambling.
The lawsuit, filed in the Eastern District of Kentucky, accuses the companies of actively targeting players within the state in direct violation of both federal and state laws.
The plaintiff, Billi Jo Woods, a Kentucky resident living in Lawrenceburg, seeks to recover her losses and allow other consumers to recoup theirs.
Legal Grounds and Historical Precedents
The legal action hinges on a unique 19th-century Kentucky law that permits gamblers to seek restitution for their losses from gaming operators.
This rule allows Kentuckians to take legal action when they believe an operator unlawfully took their money.
The law has been previously invoked, notably in a 2010 lawsuit where Kentucky successfully sued PokerStars for $300 million in damages.
Allegations and Defendants
The proposed litigation names Morris Mohawk Gaming Group, Alywin Morris, Calvin Ayre, and Harp Media BV, a group that collectively owns and manages the online gambling platforms.
Woods alleges that the defendants presented Bovada and Bodog as “legitimate” online businesses, fully aware of their legal bar from accepting players from the U.S.
According to the complaint, Woods lost “thousands of dollars gambling” on the Bovada and Bodog websites. Her attorneys argue that the websites marketed toward U.S. consumers with claims of being a “trusted source for gaming and betting.”
Potential Implications and Damages
The defendants could face more than $5 million in damages if proven guilty. The suit also asserts that the company exploited thousands of users in the state, breaching both federal and state laws by advertising as a “legitimate online business.”
Challenges and International Complications
Since Bovada and Bodog are not based in the U.S., legal observers say it will be difficult to penalize the operators.
The Curaçan government, where the companies are licensed, has refused in the past to extradite persons to the U.S. to face similar legal allegations.
This international dimension adds a layer of complexity and could lead to delays in the legal proceedings.
The Wider Context of Offshore Gambling
Despite online gaming being permitted in six states and sports betting allowed in more than 30, many players continue to patronize unregulated offshore gaming websites.
Such sites sometimes offer better lines and odds, drawing in gamblers seeking favorable terms.
An American Gaming Association report claims that the unregulated gambling sector absorbs $510.9 billion yearly, denying states where gambling is legal $13.3 billion in tax revenue.
A Case with Far-Reaching Implications
The lawsuit against Bovada and Bodog stands as a notable development in the ongoing fight against illegal offshore gambling.
While the outcome is still uncertain, the case could have far-reaching implications for the broader online gambling industry.
Legal experts note that Woods may face an “uphill battle” in court, given the complexities of international law and the utilization of a 19th-century statute.
However, a success here could set significant precedents for dealing with offshore gambling platforms targeting American consumers and spark further scrutiny and regulation of such sites.
The lawsuit illustrates the ongoing legal ambiguities and challenges posed by the world of online gambling.
As states continue to grapple with the complexities of regulating an increasingly digital and global industry, cases like this will undoubtedly shape the future landscape of online betting in the United States.
