Kentucky Resident Ponders Class Action Lawsuit Against Bovada

Some U.S. states have not yet passed sports gambling legislation. In such cases, residents are left with two choices. First, they can cross into bordering states where sports betting has been legalized. Their second option is to place wagers through offshore wagering sites, a common occurrence in the U.S. prior to the U.S. Supreme Court's lifting of the sports betting ban in 2018.

It's noteworthy that offshore sports betting is not necessarily illegal in the U.S. What is illegal is offshore operators accepting U.S. bettors while not being licensed in any state to do so. They also violate laws by advertising to residents in some states and accepting credit cards as a banking option.

None of this has been lost on one Kentucky resident who has decided to file a lawsuit against Bovada, an offshore sportsbook operating under the laws put forth by the government of Curacao. Bovada is not licensed in the U.S. Still, they have been accepting wagers from residents in every state with the exception of New York. They only stopped taking bets from New Yorkers a couple of years ago when the state passed its own online sports betting legislation.

Kentuckian Pursuing Class Action Suit Versus Bovada

The Kentucky resident who is pursuing a lawsuit versus Bovada is Billi Jo Woods. In her complaint filed with the U.S. District Court for the eastern district of Kentucky, Woods accuses Bovada of running an illegal sports betting enterprise. Among the defendants are Morris Mohawk Gaming Group and Harp Media BV, “a company based in Curaçao”, both companies intimately involved in promoting the Bovada brand in the U.S.

The actual allegations include the defendants evading Kentucky laws while advertising and promoting the Bovada brand as a legal U.S. online gambling operation. The court is currently considering giving the case "class action" status. Participants would be limited to any Kentucky residents who have lost at least $5 during any 24-hour period during a stated period of time.

As part of the complaint, Ms. Woods admits that she suffered sports betting losses of thousands of dollars during the first half of 2023. Among the relief she is seeking is a refund of her losses, and a provision that would stop Bovada from operating in the state of Kentucky.

Potential Issues for the Plaintiff

While Bovada might be guilty as charged, none of the lawsuit's defendants are U.S. residents or corporations. That's an issue for a U.S. federal court that will be limited in what they can do with such defendants. This is essentially a private matter further complicated by the fact that the defendants are registered in countries that do not have extradition agreements with the U.S.

It would seem that the chances of Woods getting the relief she seeks are a longshot at best. It's quite possible that the best they can hope for is some kind of a court ruling that would serve as a deterrent for offshore operators to continue offering their services in the U.S. At a minimum, it will bring awareness to the issue.