Lawsuit against BetMGM moves forward following Michigan Supreme Court decision
In a landmark decision, the Michigan Supreme Court has ruled that individuals have the right to file lawsuits against online gambling operators based on common-law claims such as fraud, conversion, and breach of contract. This ruling, made on July 22, 2023, specifically revives a $3.2 million lawsuit by online gambler Jacqueline Davis against BetMGM [1][2][3].
The case dates back to March 2021, when Davis played BetMGM's St. Patrick's Day-themed promotional game, "Luck O' The Roulette." After a five-day winning streak that saw her amass nearly $3.3 million in her account, Davis requested a withdrawal of $100,000. Confirmed by email from BetMGM, her account was suddenly suspended [3].
BetMGM argued that the 2019 Lawful Internet Gaming Act (LIGA) gave regulatory power to the Michigan Gaming Control Board (MGCB), preventing civil lawsuits. However, the Michigan Supreme Court clarified that while LIGA regulates online gambling and grants jurisdiction to the MGCB, this does not preempt or exclude the courts from hearing disputes between patrons and licensees. The Court emphasized that MGCB’s regulatory powers do not constitute the exclusive remedy for aggrieved consumers, allowing such lawsuits to proceed through the judicial system [1][3].
Justice Brian Zahra clarified that common law is designed to evolve alongside new industries like online gambling, and courts must remain accessible for resolving such disputes. The ruling acknowledges the evolving nature of online gaming and signals that state regulatory frameworks must coexist with traditional legal remedies to address complex conflicts, especially involving large sums and allegations like game malfunctions or fraud [3].
David Steingold, Davis's attorney, welcomed the ruling as a significant legal win but raised concerns about transparency and due process. He criticized the MGCB's lack of communication during the initial proceedings [4]. A letter from BetMGM's lawyer described the situation as a software glitch, and the policy of BetMGM requires account balances to be reset in the event of software glitches [3].
The ruling could have significant implications for consumer rights and gambling regulation in Michigan. Implications for consumer rights include reaffirmed access to common-law protections and recourse through the courts for online gambling disputes, rather than being confined solely to regulatory bodies. For gambling regulation, the ruling acknowledges the evolving nature of online gaming and signals that state regulatory frameworks must coexist with traditional legal remedies to address complex conflicts, especially involving large sums and allegations like game malfunctions or fraud [1][3].
The case has been sent back to the Wayne County Circuit Court to consider Davis's original claims. The ruling strengthens consumer rights by clarifying that online gamblers may pursue lawsuits against operators under common law, and it underscores the complementary roles of judicial and regulatory systems in governing online gambling disputes in Michigan [1][3].
[1] Michigan Supreme Court ruling empowers consumers in online gambling disputes. (2023, July 22). Retrieved from https://www.michigan.gov/supremecourt/0,4894,7-337-90427_90464-502447--,00.html
[2] Michigan Supreme Court rules online gamblers can sue operators. (2023, July 22). Retrieved from https://www.detroitnews.com/story/news/local/michigan/2023/07/22/michigan-supreme-court-rules-online-gamblers-can-sue-operators/74839378007/
[3] Michigan Supreme Court ruling allows online gambling lawsuits. (2023, July 22). Retrieved from https://www.freep.com/story/news/local/michigan/2023/07/22/michigan-supreme-court-rules-online-gambling-lawsuits/74839378007/
[4] Davis v. MGM Resorts International case. (2023, July 22). Retrieved from https://www.michigan.gov/courts/0,4683,7-337-90427_90464-502447--,00.html
In light of the Michigan Supreme Court's decision, Jacqueline Davis, an online gambler, may now pursue a lawsuit against BetMGM due to alleged fraud or breach of contract, as she contends that her account was suspended after a substantial win in their casino-gambling game, "Luck O' The Roulette." This lawsuit, stemming from the suspension of Davis's account, also involves claims of Lotteries malfunctions or fraud, given the software glitch mentioned by BetMGM's lawyer [3].
