On July 22, the Michigan Supreme Court unanimously ruled that the state’s online gambling laws do not prevent individuals from filing lawsuits related to gambling disputes.
This landmark decision allows a case involving $3.3 million in disputed online casino winnings to proceed and could have significant implications for consumer rights and gambling regulation.
The case revolves around Jacqueline Davis, who played BetMGM’s St. Patrick’s Day-themed promotional game, “Luck O’ The Roulette,” in March 2021. Starting with a $4.50 bet, she enjoyed a five-day winning streak, eventually placing maximum $5,000 bets and amassing nearly $3.3 million in her account.
After she requested a $100,000 withdrawal-confirmed by BetMGM via email-her account was suddenly suspended. BetMGM claimed there was a technical error and cited the game’s “volume of play” as justification. A letter from the company’s lawyer described the situation as a software glitch, pointing to a policy requiring account balances to be reset in the event of such issues.
Davis sued BetMGM in Wayne County Circuit Court, alleging fraud, conversion, and breach of contract. BetMGM argued the 2019 Lawful Internet Gaming Act (LIGA) gave regulatory power to the Michigan Gaming Control Board (MGCB), thereby blocking civil lawsuits. However, the MGCB stated it had no authority to rule on Davis’s specific case. A Wayne County judge initially dismissed the case in 2022, and the Court of Appeals upheld the dismissal in 2023.
Later, Davis’s legal team uncovered-via a Freedom of Information Act request—that the MGCB had cited BetMGM for failing to detect the game error within 24 hours. This key detail had not been disclosed during earlier proceedings.
Now, the Michigan Supreme Court has overturned the previous rulings. Justice Brian Zahra clarified that LIGA did not revoke individuals’ rights to pursue legal action under common law. He stressed that common law is designed to evolve alongside new industries like online gambling, and courts must remain accessible for resolving such disputes.
The case has been sent back to the Wayne County Circuit Court to consider Davis’s original claims. Her attorney, David Steingold, welcomed the ruling as a significant legal win but raised concerns about transparency and due process, criticizing the MGCB’s lack of communication during the initial proceedings.
