
UPDATE: FEBRUARY 28th, 2012. Calvin Ayre has been indicted by US DOJ and the Bodog.com domain has been shutdown and seized. We are following this story closely; read more about the Bodog.com shutdown.
UPDATE:December 14th, 2011. Bodog is now closed to US players and has redirected all existing accounts to a newly launched site called Bovada.lv. Here are the latest details about Bovada.lv. The following article overviews the initial announcement of Bodog closing to US players, which was first made public in July 2011.
BodogBrand has announced that at the end of 2011 it will cancel its licensee agreement with the Morris Mohawk Gaming Group that will effectively shut down Bodog to US players. On the surface this may seem like a shocking development as many in the online gambling industry assumed that Bodog would be one of the last to leave the US market. However after a closer look at the news it has become clear that this is simply a rebranding by the Morris Mohawk Gaming Group. Having an understanding of Bodog’s corporate structure, their reliance on the US market and attempts to expand internationally is important and we will look at how each play a role in this decision by Bodog.
Morris Mohawk Gaming Group
Prior to 2006 Bodog was one company, owned and operated by Calvin Ayre, which became a mass marketing machine and one of the largest online gambling companies around. During 2006 Calvin Ayre states that he devised a new corporate structure resulting in the creation of BodogBrand.com which would sell the rights to operate the brand to licensee’s in different regions. The Morris Mohawk Gaming Group (MMGG), headed by prominent Mohawk and Olympic Gold Medalist Alwyn Morris was the licensee for the US market. BodogBrand also created licensee’s for Europe/Canada and Asia. This technically put Calvin and all licensee at arm’s length of each other; and more specifically the US side of the business which would presumably make some business partners or regulatory bodies feel more at ease. However with recent developments in the US market after Black Friday, it appears that even this well crafted licensee structuring agreement, having the Bodog name in the US market still put some companies and regulatory bodies on edge – there needed to be more separation.
Bodog in the US Gambling Market
Bodog was undeniably one of the best marketers in the US gambling market and could be seen dominating industry websites and appearing in mainstream media outlets. They ran a healthy and very profitable business that allowed for attempts into the music and MMA industry with Bodog Music and Bodog Fight ventures. Both of these were seen as unprofitable and eventually shut down. Bodog has continued to maintain its perch among the top online gambling companies that operates in the US market and have received good casino reviews. Sources close to the industry suggest that Bodog still generates a majority of their profits from the US market. So some questions still remain as to how the agreement was structured such that Bodogbrand could simply walk away from their largest market, and potentially the cash cow that drove international expansion.
Bodog’s International Expansion
Bodog has been making attempts to grow in the UK and other European markets. This can be seen from their sponsorship agreement with Fulham FC the past few years, a new shirt deal with Ayr United for this season and BodogEurope boasting a new downtown London office. More importantly and probably the biggest impact on this move to shut down the US market was that they recently announced that BodogEurope is the first gambling company to hold a UK license. The UK regulatory body has decided that they are changing the rules with respect to how business is down there, and companies will soon need to hold such a license (and pay more tax). It is understandable that they don’t want any association with companies that offer gambling to US players and that’s why the bodog brand will no longer be available in the US as of December 31st, 2011. The question remains as to whether Bodog can be successful in the UK and the rest of Europe. It is a very saturated and mature market, and they will either need to spend boat loads of cash to further brand themselves and compete with very well established companies, or have a product that is a game changer. Based on history, we expect that it will be the former.
What does Bodog Shutting Down Mean to Players?
Bodog has stated that players will simply have their accounts and balances all transferred over to the new brand (which hasn’t been announced) run by MMGG. It is supposed to be seamless and you won’t notice a difference which falls in line with the speculation that this is simply no more than an effort to change the brand in the US.
When we consider that Bodog will need deep pockets to fund their push into Europe we suspect that this is simply an effort to distance the name Bodog from the US market. We think it’s a smart move and for Bodog to be taken seriously outside of the US market, it was needed to be done. In the end, players in the US market need a reliable and trustworthy company, and there aren’t many left these days. MMGG will no longer be able to rely on the strong brand recognition that Bodog has built over the years so it will be interesting to see how they perform. The proof will be in the product and we’re sure that user written reviews of the new mystery brand will be the true test. Players still have to wait nearly another 5 months until they are moved over to “MMGG’s new brand”.
Alternate Gambling Options
We have received many questions about safe online casino alternatives to play for US players who have reservations about the new “bodog”. We have a couple recommendations:
Sports, Casino & Poker
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Online Casinos
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