Michigan Supreme Court Decides Fate of $3 Million from BetMGM: Who Is Right – Player or Casino?

The Michigan Supreme Court is considering a high-profile case that could change the rules of the game in the state's online gambling. We are talking about a conflict between a player and a large operator BetMGM, where nothing less than $3 million is at stake.

How it all began

The story began back in 2021, when Detroit resident Jacqueline Davis claimed to have won more than $11 million by playing Luck O' the Roulette online roulette on the BetMGM platform for five days in a row. According to her, the balance gradually decreased to $3 million, after which she tried to withdraw the remaining amount.

BetMGM soon issued a statement that the winnings were due to a technical error in their software. The casino declared the victory invalid, citing a "glitch" that allegedly artificially inflated the payouts.

Who should decide: the court or the regulator?

The situation went beyond the usual dispute between the player and the platform. The case moved to the legal plane and rested on the main question: does the player have the right to sue the casino in a civil proceeding, or should all such disputes be resolved by the Michigan Gaming Control Board (MGCB), the body that oversees gambling in the state?

The lower courts sided with BetMGM. They referred to the Lawful Internet Gaming Act (LIGA), which gives MGCB exclusive authority in such matters.

But Davis' lawyer disagrees. He argues that her claims (including allegations of fraud and breach of contract) are based on common law and do not conflict with LIGA in any way.

MGCB unexpectedly supported the player

The most interesting thing is that in the course of the proceedings, MGCB filed a statement where it actually confirmed that they really do not have the resources and mandate to settle private lawsuits like Davis. This surprised the Supreme Court justices, causing serious doubts: how is it that the law seems to have transferred powers to you, and you yourself admit that you cannot use them?

BetMGM Position

For its part, BetMGM claims that it acted strictly according to the rules. According to the user agreement, the platform has the right to void bets in the event of technical failures. In addition, Davis allegedly filed a complaint with MGCB, but did not wait for an official response before going to court.

Why it matters

This case could set a precedent – it will determine whether players will be able to take legal action against casino operators in the future, or whether their complaints will be permanently stuck in the MGCB. The court's decision may also define the boundaries between administrative regulation and civil rights in the online gambling industry, which is only gaining momentum in Michigan.

The final decision of the Supreme Court is expected within a year.