BetMGM Faces $3.2M Lawsuit After Refusing to Pay Out Winnings Due to Online Glitch

by Natasha Lyndon - Wednesday, June 30th, 2021 9:44

A BetMGM Casino player based in Michigan has filed a lawsuit claiming that the operator has refused to pay out $3,188,616.42 in winnings following a five-day lucky streak in March of this year.

According to documents filed to the Wayne County Circuit Court, Jaqueline Davis of Detroit was told by BetMGM representatives that a glitch in their online game Luck O’ The Roulette meant that they couldn’t pay out her winnings. This was despite the fact that they had paid her $100,000 in cash the day before.

Davis began her game with a $50 bet and at one point during her 5-day streak was up by $11M. But on the fifth day she decided to quit with winnings of $3,288,616.42 in her account. She then immediately withdrew $100,000 and when she returned to claim more the following day she was told that her funds were frozen.

In an email sent to her attorney David Steingold, BetMGM is alleged to have said that Davis benefited from a malfunctioning process that resulted in certain win amounts being multiplied when transferred from the game to the player’s wallet. BetMGM alleges that this meant that Davis received larger amounts than she actually won in the game, an allegation that the player herself refutes.

When interviewed by Fox 2, Davis was asked if she knew about the glitch:

“How would I? I mean, that’s the purpose of gambling, you’re playing to win.”

Davis’ lawyer David Steingold said that the existence of a glitch in the game is an inadequate defence as the operator was responsible for ensuring that the game was working correctly.

“They were instructed by regulation to check this every single night, every 24 hours. And my client played for five straight days.”

Steingold also added that BetMGM had made an offer of settlement telling his client that she could keep the $100,000 that she had already withdrawn on the condition that she sign a confidentiality agreement. This would then mean that should news of the glitch be leaked, Davis would need to return the $100,000.

Steingold pointed to the existing regulations from the Michigan Gaming Control Board that state that:

“An internet gaming operator or internet gaming platform provider may not void a completed internet wager without board approval unless a void is necessary to resolve an internet gaming platform or internet game error or malfunction.”

BetMGM has stated that they cannot comment on an ongoing legal case.

Natasha Lyndon

Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.