Michigan gambler wins right to sue BetMGM over voided $3.2M jackpot

On July 23, the Michigan Supreme Court ruled that Jacqueline Davis, a Detroit-area gambler, has the right to sue BetMGM in state court. 

The case had been dismissed by lower courts on the grounds that only the Michigan Gaming Control Board (MGCB) had jurisdiction. 

But the state’s highest court unanimously overturned those rulings, asserting that Michigan law does not prevent players from pursuing legal action.

The landmark ruling opens the door for Davis to resume her lawsuit, and could reshape the way online gambling disputes are handled in Michigan and beyond.

From a $4.50 bet to millions

Davis was playing Luck o’ the Roulette, a promotional game featured by BetMGM around St. Patrick’s Day 2021, when she went on a streak that turned into a headline-making win.

Here’s how it unfolded:

• March 18, 2021: Davis deposits $50 and begins wagering $4.50 per spin.

• March 21: After building a massive balance, she requests and receives a $100,000 payout.

• March 23: Her account balance reaches $3.2 million, before being frozen by BetMGM.

• BetMGM response: The company informs Davis that an “internal error” occurred during gameplay. Her account, they say, should have shown $0 by spin #368.

• Luck o’ the Roulette is quietly removed from BetMGM’s platform in Michigan.

Despite the initial payout and congratulatory emails, BetMGM voided the remaining winnings, citing a technical malfunction.

Courts v regulators

Davis filed a lawsuit against BetMGM in Wayne County Circuit Court in mid-2021, alleging breach of contract, fraud, and conversion. 

BetMGM argued that the Michigan Gaming Control Board had exclusive jurisdiction over such disputes.

The MGCB investigated, and while it noted that BetMGM failed to promptly report the glitch and didn’t fully cooperate, it declined to take disciplinary action.

Both the circuit court and the Court of Appeals sided with BetMGM. 

However, the Michigan Supreme Court disagreed. 

In a strongly worded opinion, Justice Brian Zahra wrote:

Because our existing common-law rules may be adapted to current needs in light of changing times and circumstances, the common law is particularly well-suited to address ongoing developments arising from the Lawful Internet Gaming Act.

The case is now heading back to Wayne County for further proceedings.

Why this matters for US gamblers

This ruling affirms that Michigan players aren’t boxed out of civil action simply because a gaming board exists. It may encourage more players to come forward when they feel shortchanged by technical errors or internal policies.

Not BetMGM’s first PR headache this year

The Michigan ruling caps off a rocky stretch for BetMGM’s public image.

In Europe, the operator drew regulatory heat for featuring an underage soccer player in gambling advertisements, a move that triggered investigations and media backlash.

In Canada, BetMGM made headlines for a more positive reason: it paid out a CA$2 million progressive jackpot without delay, showing the kind of response players wish were consistent across regions.

Looking ahead: a defining case for digital gambling rights

While Davis hasn’t won her $3.2 million yet, the ruling is a huge step forward. 

The final outcome may set a precedent not only in Michigan but across other regulated states grappling with the grey area between technical glitches and player entitlements.