Kansas Sports Betting Market Restricts Bovada Access

Add the Kansas sports betting market to the growing list of states that will no longer allow residents to access the Bovada online sportsbook.

The longtime sports betting operator recently announced they would be pulling out of The Sunflower State. After previously being available in over 40 states, Bovada has now exited or been displaced from 14 different markets.

Why Bovada is Leaving the Kansas Sports Betting Market

News of Bovada’s exit from the Kansas sports betting market is generating mixed results. As most no doubt know, online sports betting in Kansas is legal. Naturally, you might think that states without legal sports betting would be the ones focusing on restricting online sportsbooks.

However, this isn’t quite the case. States that have legalized sports betting are the markets taking aim at offshore operators. And as you might guess, it has everything to do with money.

Like everyone else, Kansas issues licenses to online sportsbooks in the United States that they allow to operate in the market. In return, these sportsbooks pay them a revenue tax—on top of application licensing renewal fees.

As an offshore operation, the Bovada sportsbook exists in more of a gray area. They are not subject to the same laws as domestic betting sites. But they also do not have specific green light to provide services in many markets.

Believe it or not, the states without legal sports betting are more inclined to look the other way. Sure, some have taken action against offshore operations. For the most part, though, offshore sports betting does not impact their bottom line because they don’t offer the same service.

This is not the case for the Kansas sports betting market—or, frankly, for 37 other states, as well as the District of Columbia. These places now directly profit off the best mobile sports betting apps. So if an online operator is working within their market but not paying taxes on their revenue, regulators are bound to take exception with it. Granted, restricting offshore sportsbooks like Bovada was not a huge focus for states when they first launched sports betting. But it is on their radar now. Especially in places like The Sunflower State

Which Other States is Bovada No Longer Operating Within?

The Kansas sports betting market is now over three years old after launching in September 2022. As time goes on, not only do they have more capability to regulate those outside their jurisdiction, but they have more incentive to do so.

Remember, sports betting in the USA is not an industry with infinite growth. Yes, it is climbing in popularity now. But growth is intrinsically limited because there are a finite number of customers. To that end, states that have offered sports betting for years must work in different ways to optimize their revenue stream. Point blank: It is harder to grow, financially, when the industry is no longer novel.

This is why we are seeing other states in addition to the Kansas sports betting market push to limit offshore operations. As James Gazzale of Legal Sports Report writes:

“Bovada recently added Kansas, Louisiana and Pennsylvania to its list of restricted markets. In early August, Louisiana regulators sent Bovada a cease-and-desist letter. On Wednesday, the Pennsylvania Gaming Control Board confirmed to LSR it also sent a letter last month ordering Bovada to leave the state. Kansas sports betting regulators also told LSR they sent a letter to Bovada pushing it to vacate the state [as well]. Michigan took the initial action [earlier] this year, issuing a cease-and-desist letter in May. Connecticut and Colorado followed, and Ohio regulators did the same, sending a cease-and-desist letter in August.”

For those keeping score at home, the full list of states currently restricting Bovada access is now as follows: Colorado, Connecticut, Delaware, Kansas, Louisiana, Maryland, Michigan, Nevada, New Jersey, New York, Ohio, Pennsylvania and West Virginia. Washington D.C. is also on the list.

Will We See More States Limit Access to Offshore Sportsbooks?

Industry experts are pondering this question. The prevailing consensus is that yes, more states will seek to restrict access to offshore operators. To what end they’llbe successful is debatable. Users with access to VPNs, for instance, will be able to workaround any geo-tracking software.

Still, this could no doubt be a huge blow for international operators. The Bovada online sportsbook, of course, will almost assuredly be fine. They have a massive following throughout other countries. The United States probably represents a smaller fraction of their business.

In general, though, losing access to so many states will have an impact. Think of it in Bovada’s terms. They just lost access to more than 25 percent of the country. Now, apply this same percentage to another offshore sportsbook more beholden to United States bettors. It does not take a genius to see how certain online sportsbook models could be upended if this becomes a trade.

This is not to say offshore operators do not have contingencies. We could see more international companies apply for Kansas sports betting licenses in hopes of securing a more official market share. And yet, this can be expensive. Licensing fees and tax rates coupled with trying to battle mainstays like FanDuel and DraftKings can prove untenable. In fact, we have seen it happen. Betway is a British online gaming company that previously entered the U.S. market. They have since shuddered most of their domestic operations after failing to establish a large enough presence.

What does this mean for the future of international sports betting companies? We can’t be sure. But this is definitely a development worth tracking moving forward.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: