Michigan Supreme Court revives $3.3m BetMGM casino lawsuit

Added:
Michigan Supreme Court revives $3.3m BetMGM casino lawsuit

The Michigan Supreme Court ruled that online casino players can bring matters to the court, clearing the way for a $3.3 million dispute between BetMGM and a player.

The new decision allows Jacqueline Davis, who in March 2021 played BetMGM’s promotional roulette-style game “Luck O’ The Roulette,” featured around St. Patrick’s Day, to move forward with a lawsuit.

Starting with a $4.50 bet, Davis won several times over a five-day streak. As her winnings increased, she kept placing the game’s $5,000 maximum bet on spins, eventually adding nearly $3.3 million to her BetMGM account. Davis withdrew $100,000, which was processed by BetMGM and was followed by a congratulatory email.

The next day, BetMGM suspended her account, citing the “volume of play” and a supposed “error” as a reason for the suspension. A subsequent letter from the company’s attorney described the situation as a software glitch and invoked a policy that requires resetting a player’s account balance to its pre-error state in the event of such technical issues.

Davis filed a lawsuit in Wayne County Circuit Court, accusing BetMGM of fraud, conversion, and breach of contract under common law. BetMGM argued that Davis’s claims were barred under the Lawful Internet Gaming Act 2019 (LIGA), arguing that the law conferred regulatory authority to the Michigan Gaming Control Board (MGCB) and left no room for private lawsuits.

While the MGCB does regulate online gambling in Michigan, it informed Davis that it lacked the authority to determine the values of her specific dispute. However, a Wayne County judge granted BetMGM’s motion for summary disposition in June 2022, citing a lack of judicial jurisdiction.

The MGCB previously cited BetMGM for failing to detect the game’s malfunction within 24 hours. This information was discovered by Davis’s legal team. A following action for reconsideration was denied in Wayne County, and the decision was upheld in September 2023 by a split panel in the Michigan Court of Appeals.

The new ruling brings the case back to Wayne County Circuit Court for consideration of Davis’ original claims, a decision her attorney, David Steingold, described as a clear victory.

Gaya Abrahamyan
Gaya Abrahamyan Content Creator

Covering a range of topics in the iGaming space, including news, interviews, and in-depth articles, my main focus is to keep things informative, clear, and genuinely interesting. With a degree in Cross-Cultural Communication, I write in a thoughtful, accessible tone that connects with both industry pros and interested newcomers.

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