EXCLUSIVE: Lawsuit Details Michigan Woman’s Claim That BetMGM Owes Her $3 Million

Written By Matt Schoch on June 24, 2021
Michigan Woman BetMGM Casino June 2021

Please rewrite your statement or provide more context so that I can understand what you are referring to.

BetMGM Casino is being accused by a woman from Michigan of denying her $3 million in winnings, and the online gambling sector eagerly awaits the outcome.

Jacqueline Davis, hailing from Detroit, has accused BetMGM representatives of informing her about a glitch in an online roulette game, which she had won a substantial amount on. Consequently, they refused to provide her with the payout. Davis has taken legal action against BetMGM by filing a complaint in Wayne County Circuit Court. Playinmichigan has exclusively obtained a copy of the lawsuit, which was initially reported by Detroit television station Fox 2.

BetMGM was contacted by Playinmichigan, but a representative declined to provide any comments regarding legal matters.

According to a spokesperson from the Michigan Gaming Control Board (MGCB), there hasn’t been any complaint received from Davis, to the best of their knowledge.

According to board spokesperson Mary Kay Bean, if the patron’s complaint is filed in accordance with our procedures, we will gladly review it. More details on this process will be provided below.

Detroit woman says she played ‘Luck o’ the Roulette’ for five days

In March, Davis was accused of engaging in a continuous five-day session of playing the online game Luck o’ the Roulette, as stated in the 57-page complaint.

According to the lawsuit, Davis initiated her gambling with a modest $50 deposit on March 18th. Initially, she wagered $4.50 on her first attempt. However, as the day progressed, she gradually increased her bets to $150 and began accumulating winnings. As her winning streak persisted in the following days, Davis eventually reached the pinnacle of her bets by placing the maximum amount of $5,000.

Nevertheless, as stated in the complaint, an email purportedly sent from BetMGM to attorney David Steingold provides evidence that Davis was profiting from a faulty procedure.

In the complaint, it is stated that Jeremy N. Kolman from BetMGM wrote on April 12 about a malfunction that caused a multiplication of win amounts during the transfer from the onscreen balance to the patron’s wallet. As a result, an incorrect and exaggerated amount was awarded to Ms. Davis’s wallet, even though she did not actually win that amount in the game.

Davis denied knowing about the glitch when questioned by Fox 2.

Continuing her statement, she said, “I’m asking myself how I would do it, because the whole point of gambling is to strive for victory.”

Davis seeks more than $3 million from BetMGM

According to the lawsuit, Davis had $3,288,616.42 in her account on March 23, which was acquired through playing a game that is no longer accessible in Michigan.

BetMGM is being accused of fraud, conversion, and breach of contract in the lawsuit filed against them, which challenges their adherence to the user agreement.

Davis claimed that she had submitted a request to MGM Grand Detroit to collect $100,000, just three days after opening her account.

The following day, the VIP host at BetMGM purportedly congratulated Davis on her “Big Win,” as she asserted that she had been wagering the maximum amount of $5,000 and accumulating additional funds in her account.

On March 23, Davis claimed that she visited MGM Grand Detroit and received a cash prize of $100,000. However, following the collection, her account was suspended and she alleges that the remaining balance was not disbursed to her.

Davis is requesting the court to grant the remaining amount of $3,188,616.42, along with the reimbursement of expenses and lawyer fees.

Davis: BetMGM offered $23,000 on top of original $100k

Davis filed a complaint stating that she made multiple attempts to contact BetMGM, a Delaware-based company, regarding the outstanding balance.

According to her claims, she asserts that during a single telephone conversation, a representative from BetMGM informed her that she was not expected to emerge victorious. Furthermore, she states that she was presented with the choice of receiving either $23,000 in cash or $75,000 in BetMGM credits, in addition to the $100,000 she had already withdrawn.

According to the complaint, the offer includes the condition that she must refrain from discussing or disclosing BetMGM’s refusal to pay her alleged winnings.

The complaint alleged that the BetMGM representative declined to provide a written confirmation of the offer.

According to the complaint, BetMGM purportedly responded to Kolman’s email on April 12 by including a spreadsheet of Davis’ plays, which was not mentioned in the initial complaint. The spreadsheet allegedly revealed that the game malfunctioned during 2.5% of her plays.

According to the complaint, despite the email stating that Davis received approximately $4.1 million from the overpayments, the game continued to allow significant bets on rounds in which Davis incurred losses.

Complaint about Bet MGM Roulette

MGCB: BetMGM reported glitch in ‘Luck o’ the Roulette’ game

Earlier this year, Bean, a member of the state board, stated that BetMGM had alerted the regulator about a malfunction in their payout system. As a result, the game “Luck O’ the Roulette” has been pulled from all operators in Michigan.

According to Bean, the MGCB provides detailed information on its complaint procedure.

If you believe that you have been treated unfairly by a licensed internet casino or online sportsbook operator, you have the right to file a complaint with both the operator and the MGCB. On our website, www.michigan.gov/mgcb, you can find details about the complaint procedure as well as a link to a patron dispute form (refer to the How To File a Complaint section on the home page).

Internet gaming operators, internet gaming platform providers, sports betting operators, or internet sports betting platform providers are legally required to incorporate a transparent mechanism on their respective platforms informing customers about their entitlement to raise a complaint. This information is usually available in the terms and conditions or player protection pages, and can also be obtained upon request from the MGCB.

In order to file a complaint with the MGCB, the bettor is required to first file a complaint with the operator or platform provider. The operator or platform provider will then conduct an investigation into the complaint and provide a written response within 10 calendar days of receiving the complaint. If the bettor remains unsatisfied with the response from the operator or platform provider, they have the option to file a complaint with the agency. The complaints are then assigned to regulation officers for review, and weekly status meetings are conducted.

After receiving a complaint, the MGCB has the authority to conduct an investigation as deemed necessary and can instruct an operator or platform provider to implement any necessary corrective measures.

How would MGCB rule on case? That’s an open question

The ruling of the MGCB on such a case would garner significant attention from across the state and the industry as a whole. Instances where such disputes are resolved in public are quite uncommon.

While the specific details and factors of this case remain undisclosed, Michigan’s Lawful Internet Gaming Rules encompass provisions for invalidating online bets.

The regulation states that an internet gaming operator or internet gaming platform provider cannot cancel a completed internet wager without board approval, unless it is imperative to address an internet gaming platform or internet game error or malfunction.

BetMGM leads Michigan market in casino

Since its launch on January 22, online casinos and online poker in Michigan have become a lucrative industry, generating significant revenue.

Despite facing competition from 12 other operators, BetMGM has emerged as the market leader, capturing 36.0% of the market share with an impressive revenue of $141.7 million.

In total, the internet gaming sector has accumulated a revenue of $393.9 million by the end of May, resulting in a tax revenue of $71.5 million for the state. The city of Detroit has generated $20.9 million through taxes and fees, while tribal casino operators have contributed $7.3 million.

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