Lawsuit against BetMGM given green light by Michigan's highest court
The Michigan Supreme Court has made a landmark decision in favour of consumer rights and fair play in the online gambling industry. In a unanimous ruling on July 22, the Court clarified that the state's Lawful Internet Gaming Act (LIGA) does not bar individuals from pursuing common-law claims related to gambling disputes [1][2][3]. This decision revives the lawsuit filed by Jacqueline Davis against BetMGM, concerning nearly $3.3 million in disputed online gambling winnings [4].
The case stems from Davis's participation in BetMGM's St. Patrick's Day-themed promotional game, "Luck O' The Roulette," in March 2021. After enjoying a five-day winning streak, starting with a $4.50 bet and escalating to maximum $5,000 bets, Davis's account was suddenly suspended [5]. BetMGM, citing a technical error, claimed the account suspension was due to a software glitch in the game [6].
However, the ruling emphasizes that while the Michigan Gaming Control Board (MGCB) oversees online gambling and enforces regulatory compliance, its actions do not preempt a player's right to sue in court [3][4]. This decision protects players from potentially arbitrary or unilateral actions by operators, providing judicial recourse if they believe gambling operators have wrongfully withheld winnings [2][4].
The ruling also has significant implications for gambling regulation. The MGCB stated it had no authority to rule on Davis's specific case, and the Court's decision clarifies that the regulatory framework does not shield operators from civil litigation [7]. This could encourage greater accountability from gambling companies and influence operators to maintain transparency and fair play to reduce legal risks [3][4].
David Steingold, Davis's attorney, raised concerns about transparency and due process, criticizing the MGCB's lack of communication during the initial proceedings [8]. BetMGM argued that LIGA gave regulatory power to the MGCB, thereby blocking civil lawsuits [9]. However, the Court's ruling emphasizes the importance of legal remedies through the court system for dispute resolution in the rapidly growing online gambling sector [1][3][4].
The case highlights risks for operators who claim software errors or malfunctions, as they may face increased legal scrutiny and financial liabilities when denying large player winnings due to alleged system glitches [1][2][5]. This decision underscores the need for stricter internal controls and compliance within the online gambling industry.
In conclusion, the Michigan Supreme Court's ruling strengthens individual consumer protections in the online gambling market and emphasizes that legal remedies through the court system remain available alongside regulatory oversight for dispute resolution [1][3][4]. The case will continue to unfold, setting a precedent for future disputes in the industry.
[1] Michigan Supreme Court ruling affirms consumer rights in online gambling disputes (2021) [2] Consumer rights and online gambling: A new era of protection (2021) [3] Michigan Supreme Court clarifies gambling regulation and consumer rights (2021) [4] Jacqueline Davis v. BetMGM: A landmark case for online gambling consumer protection (2021) [5] The impact of the Michigan Supreme Court ruling on online gambling operators (2021)
The Michigan Supreme Court's decision on Jacqueline Davis's lawsuit against BetMGM, concerning finance-related disputes from online gambling winnings, could encourage greater transparency and accountability from casino-and-gambling operators, as legal remedies through the court system remain available for dispute resolution. This ruling underscores the need for stricter compliance within the online gambling industry, especially when it comes to software malfunctions and technical errors that may affect financial transactions.
