The Michigan Supreme Court ruled on a significant online gambling lawsuit.
The Michigan Supreme Court has ruled that Jacqueline Davis can continue her $3 million lawsuit against BetMGM over a disputed gambling win attributed to a software malfunction. Davis won nearly $3.3 million playing ‘Luck O’ The Roulette’, but her account was suspended due to a claimed technical error. The ruling clarifies that online gambling laws do not preempt common law claims, allowing her case to return to the Wayne County Circuit Court for further proceedings, highlighting ongoing concerns about user rights in online gambling.
Detroit – A ruling by the Michigan Supreme Court on July 22 has allowed a Detroit woman, Jacqueline Davis, to proceed with her $3 million lawsuit against the online gambling operator BetMGM. This lawsuit centers on a claim for winnings that BetMGM attributes to a malfunction in its gaming application.
Davis participated in the promotional game “Luck O’ The Roulette” in March 2021, starting with a modest $4.50 bet. Over the span of five days, she escalated her bets to the maximum allowed of $5,000, ultimately accumulating nearly $3.3 million in winnings. After confirming her win, she successfully withdrew $100,000 of the amount, receiving a congratulatory email from BetMGM in the process. However, on the subsequent day, her account was suspended by BetMGM, which cited a technical error as the reason behind her winnings.
BetMGM’s legal representation later notified Davis’ attorneys that her substantial winnings were a result of a game error, leading to the removal of “Luck O’ The Roulette” from BetMGM’s platform. Following this incident, Davis initiated legal action in Wayne County Circuit Court, alleging fraud, conversion, and breach of contract against the company.
The legal battle intensified as BetMGM claimed that under Michigan’s online gambling laws, enacted in 2019, any disputes should be handled by the Michigan Gaming Control Board (MGCB) rather than the courts. Although the gaming board oversees gambling regulations in the state, it was established that the board does not have jurisdiction over the specifics of Davis’ legal claims against BetMGM. In fact, the MGCB determined that BetMGM had violated gambling regulations by failing to identify the glitches responsible for Davis’ winnings within the stipulated 24-hour timeframe.
In June 2022, a judge ruled that the court lacked jurisdiction to hear the case, granting BetMGM’s motion for summary disposition. This decision was echoed in September 2023 by a divided panel on the Michigan Court of Appeals, which upheld the lower court’s ruling. In light of this, Davis appealed to the Michigan Supreme Court.
Ultimately, the Michigan Supreme Court delivered a unanimous ruling that allows Davis’ case to advance in the legal system. The ruling clarifies that the Lawful Internet Gaming Act (LIGA) does not preempt common law claims that arise from disputed gambling winnings. Justice Brian Zahra highlighted that developments in public policy regarding online gambling could lead to the establishment of new legal rights for internet gamblers.
Davis’ attorney expressed concerns regarding the lack of transparency in how claims against online casinos, such as BetMGM, are processed, particularly following disputes involving substantial sums of money. Following this decision, neither BetMGM nor the MGCB offered immediate commentary on the ruling.
The case has been remanded back to the Wayne County Circuit Court, where further proceedings will be held. This ruling stands as a significant development in the ongoing discussions surrounding online gambling regulations, user rights, and the responsibilities of gaming companies in Michigan.
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