The bad news keeps rolling in for Bovada.

The offshore sportsbook is set to receive its second cease-and-desist letter this week, this time from Connecticut. The letter will instruct the operator to shutter operations or risk further legal action. Connecticut’s letter will be the second Bovada has received in the last two weeks, following Michigan, which sent theirs on May 29.

The move marks a significant step toward eliminating the so-called “gray market” from the Constitution State. The term “gray market” refers to offshore sportsbooks that operate in a legal gray area. With legal sports betting continuing its rapid growth in the US, several states are now looking to shut out unregulated operators, ensuring all tax revenue from the industry goes to the state.

While Michigan and Connecticut are the latest to take action against Bovada, they are far from the first. Delaware, Maryland, Nevada, New Jersey, and New York all requested Bovada shutter operations in their states. The operator has complied with each of those requests but has yet to respond to the latest round of cease-and-desist letters. 

Connecticut has not shared when they will officially send the letter to Bovada.

While the sportsbook has complied with requests to leave states in the past, that could change with Minnesota and Connecticut taking action. States are unable to pursue legal action against offshore sportsbooks like Bovada. They would need help from the US Department of Justice to attempt to force Bovada out, which likely would not be a high priority.

While refusing to comply with the cease-and-desist letters is a significant risk, Bovada may not have much left to lose. Only a handful of states remain without a legal sports betting market, and the many that do are finally pushing to eliminate gray market competitors. If Bovada doesn’t take a stand now, it could soon find itself locked out of the US market.

Michael is an avid sports fan and a veteran bettor from Milwaukee. He learned the trade from his grandfather in Las Vegas as a kid and has turned that into a successful career. He cheers for all Wisconsin pro teams along with his Alma Mater Arizona State. He specializes in baseball betting, but has experience in football, basketball, and hockey as well. When he isn’t pouring over stats, he’s spending time with his two young children.