The Michigan Supreme Court ruled that a woman can proceed with her lawsuit over $3 million in disputed gambling winnings.
Jacqueline Davis, of Detroit, filed a lawsuit against BetMGM. She won $3 million playing an online roulette game on the company’s Michigan platform.
However, when she tried to withdraw the money, the company refused to pay out the winnings.
Davis lost in her initial efforts to sue at the Circuit Court levels. But the state’s highest court ruled in a unanimous opinion that she had the right to sue. Furthermore, the court said online gaming law didn’t substitute for common law in the case.
“The Legislature enacted the (Lawful Internet Gaming Act) to legalize online gambling. We would be remiss not to acknowledge that this shift in public policy may give rise to new rights under the law,” Justice Brian Zahra wrote in an opinion for the court. “Because our existing common-law rules may be ‘adapted to current needs in light of changing times and circumstances,’ the common law is particularly well-suited to address ongoing developments arising from the LIGA.”
BetMGM Claims Game Malfunctioned
Davis was playing the platform’s “Luck O’ The Roulette” promotional game around St. Patrick’s in 2021. Indeed, she looked to have had the luck of the Irish on her side.
According to a report from the Detroit Free Press, she began wagering $4.50 per spin. But after winning for an extended time frame, she pressed her luck and was betting the $5,000 maximum. And she continued winning.
Davis continued playing for five days and racked up $3.3 million in winnings. She requested a cashout for $100,000 and received an email approving the transfer.
The following day, the company informed her there was a glitch in the game. As a result, her account was frozen because of her volume of play.
“They say it malfunctioned, but they really don’t have much evidence as to what actually happened,” her appeals attorney Mark Granzotto told The Detroit News.
BetMGM’s attorney informed Granzotto that company policy stipulates that in these situations the player would be returned to “the position they were in before the error occurred.” In other words, Davis won’t receive the millions she won.
The company later removed the game from the BetMGM’s online casino. Davis alleged fraud and sued BetMGM in Wayne County Circuit Court. BetMGM argued that gaming law in the state designated the Michigan Gaming Control Board with jurisdiction over gambling-related disputes.
Regulators Said BetMGM Violated Gaming Law
Davis’s attorney had also registered a complaint with the board, which later determined MGM had violated gaming law by not checking the game within 24 hours of Davis’s winnings. That ruling wasn’t relayed in court and a judge dismissed the cane in June 2022, citing lack of jurisdiction.
After receiving the control board ruling, the Wayne County Circuit Court rejected rehearing the case. The supreme court has now remanded the case back to Wayne County.
BetMGM hasn’t commented on the case but the company’s attorney Norman Ankers told the supreme court justices that “the rules and (Davis’) contract (with BetMGM) make abundantly clear that a malfunction will void all winnings.”
A similar scenario played out last year in Atlantic City when a woman won a $1.2 million jackpot playing Wheel of Fortune at Bally’s. The casino ruled that there was an error with the game and denied paying her the jackpot, instead offering her a $350 payout.
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