This str_replace does the job:
$string = str_replace("-", " ", $string);
Also, you can make it as a function.
function replace_dashes($string) {
$string = str_replace("-", " ", $string);
return $string;
}
Then you call it:
$varcity = replace_dashes($row[website]);
<div><a href="http://www.envisionforce.com/local/'.$row[website].'-seo-services">'.ucwords($varcity).'</a></div>