Michigan Supreme Court sides with gambler in $3.2M lawsuit against BetMGM
A Michigan woman whose online gambling account showed that she won over $3 million but was later told her account had no money remaining has won the right to seek damages against the gambling company through Wayne Circuit Court.
The Michigan Supreme Court handed down the ruling Tuesday in the case filed as Davis v. BetMGM.
According to court documents, Jacqueline Davis started playing an online game called "Luck O' the Roulette" with $50 deposited into her BetMGM account on March 18, 2021. Her first wager on the game was $4.50. She played off and on for the next several days, incurring winnings that she used as subsequent plays while increasing the wager amounts, according to court records.
"In gambler's parlance, plaintiff went on a 'heater' of epic magnitude," the justices wrote. "As her account grew, she pressed her bets."
Davis requested a payout of $100,000 on March 21, 2021, and was sent an email in response to coordinate those details. She received that money. By March 23, 2021, her wagers had increased to $5,000 per play, and her account reached a balance of $3,289,500.75.
About that time, the legal affairs office from BetMGM Casino Operations contacted her to explain they had "identified unusual activity and an improbable balance associated with Ms. Davis's account." The company claimed a malfunction began around play 28, and that her account should have read zero at play 368.
"Pursuant to the relevant Michigan Gaming Laws and Regulations, Luck O' the Roulette has since been removed from the Michigan market and the Michigan Gaming Control Board was notified of the malfunction," the company's investigation said.
Davis subsequently filed a dispute with the circuit court and the Michigan Gaming Control Board in pursuit of the winnings she expected.
The Michigan Gaming Control Board eventually noted that BetMGM failed to notify the gaming board for several days that there may have been a malfunction with the game, and added that the company did not fully cooperate with the investigation into the incident. Despite noting those violations, the board decided not to take formal disciplinary action against BetMGM.
The circuit court concluded that the gaming board's action preempted other legal action. In a split decision, the Michigan Court of Appeals sided with the lower court.
But at the Michigan Supreme Court, a unanimous ruling concluded that procedures spelled out in Michigan's Lawful Internet Gaming Act did not take away the player's right to seek legal action.
The case has been remanded back to the circuit court "for further proceedings consistent with this opinion."
CBS Detroit has reached out to BetMGM, which declined to comment further on the lawsuit.
