Michigan Woman's Legal Battle with BetMGM Heads to State's Highest Court

In 2021, a Michigan woman’s joy turned into a legal battle when BetMGM voided her $3 million jackpot due to a glitch. Now, the case has reached the Michigan Supreme Court, highlighting the complexities of online gambling laws and regulatory oversight.

The Initial Dispute

The saga began when Jacqueline Davis claimed her jackpot win on BetMGM, only to have it revoked by the operator citing a technical glitch. Davis took BetMGM to court, seeking to reclaim her winnings.

The legal battle escalated as Davis filed complaints with the Michigan Gaming Control Board (MGCB), alleging BetMGM’s failure to address the glitch promptly. The MGCB acknowledged the issue but clarified that its jurisdiction did not extend to civil litigation.

During the investigation, the MGCB issued a warning to BetMGM for not reporting the glitch in a timely manner. While no formal action was taken, the warning emphasized the importance of transparency and adherence to regulations in the online gambling industry.

The case has now reached the highest court in Michigan, where both sides will present their arguments. The court’s decision will have far-reaching implications, as it will clarify the role of regulatory bodies in resolving disputes related to online gambling.

The legal battle between Davis and BetMGM underscores the challenges and complexities of regulating online gambling. It raises questions about the ability of operators, the role of regulatory bodies, and the rights of players in such disputes.

The Future of Online Gaming

The outcome of this case will likely influence how online gambling laws are interpreted and enforced in Michigan and potentially across other states with legalized online gambling. It will set a precedent for how similar disputes are handled in the future.

The Michigan woman’s legal battle with BetMGM over a $3 million jackpot highlights the intricacies of online gambling regulations and the importance of clear guidelines and oversight. As the case unfolds in the Michigan Supreme Court, industry stakeholders and players alike await a resolution that could shape the future of online gaming laws and player rights.

In the majority opinion from the Court of Appeals, the group sided with BetMGM on the grounds that this is an issue for the MGCB: “A portion of plaintiff’s claims appear to be explicitly based on defendant’s alleged violation of LIGA or rules promulgated under it; the remainder of plaintiff’s claims nevertheless conflict with the MGCB’s authority under LIGA to regulate all aspects of internet gaming. Although plaintiff argues that the letter she received from the MGCB indicated that the MGCB lacked the authority to resolve her dispute, it is clear that the MGCB had the power under LIGA to investigate disputes such as plaintiff’s, to determine whether a violation of LIGA or the rules promulgated under it had occurred, and to require corrective actions from an internet gaming provider. The fact that the MGCB did not or will not take action in plaintiff’s favor in this particular case does not alter our preemption analysis.”

The appeals court’s decision was not unanimous. Judge Kathleen A. Feeney provided a dissenting opinion, arguing against the majority’s ruling. She emphasized that while the Gaming Board has the authority to investigate and impose licensing sanctions, the plaintiff’s case seeks payment for winnings, not licensing issues. Feeney disagreed with the majority’s conclusion that the plaintiff cannot pursue her claims in circuit court, highlighting the importance of providing a forum for patrons seeking remedies in tort or contract disputes. She criticized the decision for favoring the House over the player’s rights.

Source:

”BetMGM to appear before Michigan State Supreme Court”, SBC Americas. June 05, 2024.