Michigan Supreme Court Backs Gambler in $3.1M BetMGM Dispute

Following two defeats in lower courts, gambler Jacqueline Davis has finally hit the jackpot in her legal fight against BetMGM. 

On Tuesday, the Michigan Supreme Court ruled unanimously in favor of Davis, giving her another chance to fight for more than $3 million in disputed online gambling winnings as the case returns to the trial court.

Game Malfunction Claims

Davis claims she won $3.2 million over six days in 2021 playing BetMGM’s “Luck o’ the Roulette” game but was denied the bulk of her winnings when the company suspended her account, saying the game had malfunctioned. 

According to court records, she managed to withdraw $100,000 in person at MGM Grand Detroit before her account was frozen, leaving the remaining balance inaccessible.

“They say it malfunctioned, but they don’t have much evidence as to what happened,” said her attorney, Mark Granzotto, who is responsible for handling the appeals.

The Irish-themed game features a Return to Player rate of 95.39% and can trigger wins of up to 100x the original bet on each play.

In May, we reported on a similar system glitch claim at Atlantic City’s Ocean Resort Casino, which led to the gambling venue refusing to pay a $2 million jackpot to the 72-year-old winner in question. 

In April 2021, a Lincolnshire player was granted his £1.7 million winnings from Betfred amid London’s High Court favorable decision following software error claims from the company. 

“Plaintiff Went on a ‘Heater’ of Epic Magnitude” 

Court documents describe Davis’ streak as nothing short of extraordinary. Justice Brian Zahra, writing for the Supreme Court, put it bluntly: “In gambler’s parlance, plaintiff went on a ‘heater’ of epic magnitude.” 

Davis began playing in March 2021 with a $4.50 wager and quickly amassed millions of dollars. However, once BetMGM’s internal team flagged her balance as “improbable,” her account was quickly shut down.

Davis sued in Wayne County Circuit Court that June, alleging breach of contract, fraud, and conversion. BetMGM countered that any patron disputes must be resolved by the Michigan Gaming Control Board (MGCB), and lower courts agreed, dismissing her case.

Norman Ankers, an attorney for BetMGM, argued before the Supreme Court: “… the rules and (Davis’) contract (with BetMGM) make abundantly clear that a malfunction will void all winnings, and therefore, her remedy is to go before the MGCB.”

The state board, however, declined to take formal action. An assistant attorney general noted that the MGCB can direct a casino to correct violations, but “does not determine the validity of a dispute between the authorized participant and the licensee.”

Judge Kathleen Feeney, in her Court of Appeals dissent, warned that leaving Davis without recourse “lends a new meaning to the old gambling adage that the House always wins.”

The state’s highest court agreed that Davis deserves her day in court. “We would be remiss not to acknowledge that this shift in public policy may give rise to new rights under the law,” Zahra wrote, citing Michigan’s legalization of online gambling. The case will now head back to Wayne County Circuit Court.