CONSUMER ALERT: UNREGULATED & UNAUTHORIZED SPORTS BETTING APPS ARE LEAVING UNDERAGE TEXANS VULNERABLE

AUSTIN, TEXAS (September 19, 2024) – As the NFL season ramps up, the Sports Betting Alliance is warning Texas residents to be on the lookout for unregulated and unauthorized sports betting apps that leave underage residents vulnerable. Unlike legal and regulated American sports betting platforms, these unauthorized sportsbooks dodge U.S. sports betting regulations and offer their unregulated product in states like Texas where sports betting still isn’t legal.

Two of the most widely downloaded unauthorized platforms are Bovada, an unregulated sports book that locates their servers overseas to dodge U.S. law enforcement and taxes, and Fliff, a so-called “social” sportsbooks that uses loopholes to avoid U.S. sports betting laws. But because sports betting isn’t legal here in Texas, Google search data shows these types of unregulated and unauthorized apps have become extremely popular for Texans who want to bet on games.

“News reports have shown how these unauthorized and unregulated apps don’t verify users’ age or identity before letting them place a bet,” said Lauren Clay, spokesperson for the Texas Sports Betting Alliance. “These unregulated platforms leave minors vulnerable, and yet they are gaining huge popularity in states like Texas that don’t have a legal, regulated market. We need to stamp out unregulated sports betting apps and create a regulated marketplace. Texas deserves a legal, regulated, transparent market that protects minors and stops unregulated gaming.”

Unregulated offshore sports betting apps like Bovada locate their servers in foreign countries to avoid U.S. sports betting safeguards. Bovada only requires users to “self-attest” to their age (photo below) when they sign up and encourages users to use cryptocurrency, which is very difficult for law enforcement to track. Members of Congress have called on them to be shut down, and some states that have already created legal, regulated sports betting markets have sent the company cease and desist letters. This summer, West Virginia became the 8th state to ban Bovada from operating within its borders following similar recent action in Michigan and Colorado.

Caption: Offshore sports betting company Bovada only requires users to click a box to prove they are of legal age before creating an account.

Even though sports betting is illegal in Texas, Google search data shows it is extremely popular. According to the search data from the past year, the 10 states where Bovada is the most searched for are all places that have yet to create a legal, regulated online sports betting market. Texas ranks fifth out of 50 states in that list.

Caption: Google search data shows a heat map of where illegal offshore sports betting company Bovada is searched in America, with the darkest states showing the highest density of searches per capita. The top 10 states where Bovada was most frequently searched are all states like Texas where sports betting is currently illegal.

Meanwhile, the Washington Post reported how a different type of unauthorized and unregulated “social” sports betting app – Fliff – is marketed to teens. Like unregulated offshore sports betting apps, Fliff uses loopholes to skirt U.S. sports betting laws that protect minors and ensure responsible play.

“Signing up is, by design, relatively easy. After downloading the app, users need only fill in a few fields and then click a box certifying they are at least 18. No ID or age verification is required,” the Post wrote.

The Post notes these apps are “being marketed in some places as ‘suitable for ages 13 and up’ and easily downloaded by even younger users.”

While experts have criticized unregulated providers like Bovada and Fliff for their ease of access to youth, the same experts credit the protections in place on legal, regulated sports betting providers such as DraftKings, FanDuel, BetMGM, and Fanatics that ensure minors don’t gain access.

“Legalized, regulated online gambling in the U.S. has done a very good job of protecting underage kids from accessing sites,” National Council on Problem Gambling chief Keith Whyte told reporters in 2022. “Tech tools in place are sophisticated, robust, and any number of regulators in the U.S. check these things regularly. I’m not aware of any significant breaches by kids.”

States that have created a regulated sports betting marketplace have seen huge decreases in web traffic to unregulated sports betting apps. It’s why leaders and parents across Texas are pushing to join the 36 states that have created a legal, regulated sports betting market and take on illegal sports betting that leaves minors vulnerable.