Michigan Supreme Court Allows $3.2M Online Gambling Lawsuit Against BetMGM

The Michigan Supreme Court unanimously ruled that Jacqueline Davis, a BetMGM patron, can pursue a lawsuit against the online gambling company over approximately $3.2 million in withheld winnings, rejecting prior rulings that dismissed the case on jurisdictional grounds. The court determined that Michigan's Lawful Internet Gaming Act does not preclude gamblers from filing common-law claims such as fraud, conversion, and breach of contract, and clarified that the Michigan Gaming Control Board's authority does not exclusively cover all disputes between gamblers and gaming licensees. Davis won a substantial amount playing BetMGM's "Luck o' the Roulette" game, withdrew $100,000, but had her account suspended and remaining funds withheld after BetMGM claimed a gaming malfunction. The Michigan Gaming Control Board found BetMGM violated regulations by not promptly investigating the malfunction, but the board's jurisdiction was limited to regulatory matters rather than legal claims. The decision overturns prior dismissals by the Wayne County Circuit Court and the Court of Appeals, sending the case back to trial court for further proceedings. This ruling affirms that disputes involving large online gambling winnings can be resolved through the court system, providing a significant legal precedent for patrons challenging gaming operators.