Michigan Supreme Court lets gambler sue BetMGM over $3.1 million winnings

The Michigan Supreme Court has handed a big win to a Detroit woman locked in a $3.1 million fight with BetMGM. On Tuesday (July 22), the justices unanimously said Jacqueline Davis can move forward with her lawsuit against the online gambling giant, rejecting BetMGM’s argument that state regulators, not the courts, should handle the dispute.

It all started in March 2021, when Davis went on a six-day hot streak playing “Luck O’ the Roulette” on BetMGM’s site. She turned a $50 deposit into more than $3 million. BetMGM even approved her request to withdraw $100,000 and emailed her congratulations. But soon after, the company froze her account and claimed a glitch in the game had inflated her winnings.

Case against BetMGM to move forward in Michigan

In a unanimous opinion authored by Justice Brian K. Zahra, the court found that “there is no clear indication that the Legislature intended the [Lawful Internet Gaming Act] to abrogate plaintiff’s common-law claims of fraud, conversion, and breach of contract.” The justices reversed lower court rulings dismissing Davis’s lawsuit and sent the case back to Wayne Circuit Court for further proceedings.

At the center of the fight is BetMGM’s claim that Michigan’s gaming laws and the oversight of the state’s Gaming Control Board (MGCB) mean players like Davis cannot take their disputes to court. BetMGM argued that since “the MGCB has exclusive jurisdiction over any dispute related to online gambling,” Davis’s lawsuit could not proceed.

The Michigan Supreme Court has issued an opinion in No. 166281, Jacqueline Davis v BetMGM, LLC, which was argued on April 10, 2025. https://t.co/2IeUW0LE3o pic.twitter.com/dntNNu46Ui

— MI Supreme Court (@MISupremeCourt) July 22, 2025

But the Supreme Court rejected that argument, finding that “the Board does not have the authority to adjudicate such a dispute” and that “plaintiff’s pursuit of her common-law claims in circuit court is not inconsistent with a statutory scheme that confers on the MGCB discretion to take corrective action.”

The justices pointed out that after BetMGM froze Davis’s account, the MGCB investigated but expressly told Davis that its review was “not intended to make a determination on the merits of any outstanding dispute or litigation between an authorized participant and the internet gaming operator” and that the agency had “no authority to award any money or other relief directly to an authorized participant.”

BetMGM claims technical error on woman’s account

BetMGM said its own investigation found a technical glitch that boosted Davis’s account balance on about 2.5% of her plays. “Absent this error,” BetMGM wrote in an April 2021 letter, “Ms. Davis’s account would have gone to zero approximately around her 368th turn and she would not have been able to continue playing without depositing additional funds.”

The high court said issues like these belong in the courts, not with state regulators. Justice Zahra wrote: “Simply because the MGCB may take corrective measures on some matters under the LIGA does not mean that the MGCB is required to take corrective measures on all matters to resolve a dispute between a patron and licensee.”

The ruling drew attention to Davis’s extraordinary gambling streak. After depositing just $50, she went on what the opinion described as a “‘heater’ of epic magnitude,” growing her account balance to $3.29 million over a few days.

The ruling doesn’t decide whether Davis will get the full $3.1 million, but it clears the way for her lawsuit to move ahead in state court.

Similarly, in March, Paddy Power was told by the British High Court to pay out $1.28 million (£1 million) after a customer sued. She was initially told she’d hit the mega jackpot but only got £20,000.

BetMGM did not immediately respond to a request for comment on the ruling in Michigan.

Featured image: BetMGM / Canva

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