Michigan Supreme Court Paves Way for Player Lawsuits Against Gambling Sites in BetMGM Case
Michigan Supreme Court has unanimously ruled that a gambler can sue BetMGM in court over a disputed $3.2 million win. The ruling, first reported by Michigan Advance, overturns lower court decisions and confirms that players can bring common-law claims like breach of contract and fraud against licensed operators.
A Dispute Over a $3.2 Million Win
The case centers on Jacqueline Davis, a BetMGM customer who won a massive jackpot on one of the company’s online games. After she successfully withdrew $100,000, BetMGM suspended her account and blocked her access to the remaining $3.2 million, claiming the winnings were the result of a game error.
When Davis sued for breach of contract and fraud, both the Wayne County Circuit Court and the Michigan Court of Appeals ruled that they lacked jurisdiction to hear the case.
They determined that the state’s Lawful Internet Gaming Act (LIGA) preempted common-law claims, meaning the Michigan Gaming Control Board (MGCB) was the only venue for such disputes.
High Court Unanimously Reverses
The state’s high court has now completely reversed those decisions, clearing a path for Davis’s lawsuit to proceed. In the unanimous opinion, Justice Brian Zahra wrote that the legislature did not intend for LIGA to strip players of their right to sue in court.
The court clarified that while the MGCB can take action against operators, it is not the sole or “exclusive remedy for an aggrieved consumer.” Justice Zahra noted that the board is not required to resolve every dispute between a player and a licensee. The ruling sends the case back to the Wayne County Circuit Court to be heard on its merits.
The Supreme Court’s decision acknowledges the new legal questions arising from the state’s regulated online gambling market. Justice Zahra wrote that the common law is “particularly well-suited to address ongoing developments” from LIGA, as it can be “adapted to current needs in light of changing times and circumstances.”
The ruling is a significant victory for players, ensuring they have a legal path to challenge operators in court when they believe they have been wronged. For Jacqueline Davis, the decision means her fight for the disputed $3.2 million in winnings will finally have its day in court.
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