Michigan Supreme Court Rules Gambler Can Sue BetMGM for $3.2 Million in Disputed Winnings

A Michigan woman is now one step closer to reclaiming a $3.2 million online jackpot after the state’s highest court ruled she can take BetMGM to court over the disputed winnings.

In a unanimous decision, the Michigan Supreme Court sided with Jacqueline Davis, whose account on BetMGM’s online casino reportedly reached over $3.2 million during a five-day stretch in March 2021. The ruling allows her lawsuit to proceed in Wayne County Circuit Court, reversing earlier decisions that had dismissed the case.

From $50 to Over $3 Million: Then, a Suspension

According to court filings, Davis began playing a promotional online roulette game called Luck O’ the Roulette on March 18, 2021, with a $50 deposit. She wagered $4.50 on her first spin. Over several days, her winnings grew rapidly, with bets escalating to $5,000 per spin. By March 23, her account showed a balance of $3,289,500.75.

Davis successfully withdrew $100,000 and received confirmation from BetMGM, both via email and in person at MGM Grand Detroit. However, shortly after that transaction, her account was suspended.

BetMGM later claimed a “game malfunction” was responsible for the balance shown in Davis’s account. The company stated that the issue arose during her 28th play and that the game had incorrectly calculated her winnings, thereby inflating her balance. In internal correspondence, BetMGM stated Davis's account should have reflected a zero balance by the time she reached her 368th spin.

A Legal Battle Years in the Making

Davis rejected BetMGM’s subsequent settlement offers, which reportedly included cash or BetMGM credits on the condition that she stay silent about the glitch. Instead, she filed a lawsuit in June 2021, accusing the operator of breach of contract, fraud, and conversion.

The Michigan Gaming Control Board (MGCB) was notified of the alleged malfunction days after it occurred, but the board ultimately declined to take disciplinary action. It did note that BetMGM failed to report the issue promptly and did not fully cooperate with the investigation.

Lower courts initially sided with BetMGM, ruling that disputes involving online casino winnings should be handled exclusively by the MGCB. The Michigan Court of Appeals upheld that interpretation in a split decision.

But the state Supreme Court disagreed. In a strong rebuke, the justices said Michigan’s Lawful Internet Gaming Act does not override a citizen’s right to pursue civil litigation. “We would be remiss not to acknowledge that this shift in public policy may give rise to new rights under the law,” Justice Brian Zahra wrote in the court’s opinion.

What Happens Next?

The case now heads back to Wayne County Circuit Court, where Davis will continue her effort to recover the remaining $3.1 million plus attorney fees. Her legal team argues that BetMGM has failed to provide detailed evidence supporting its glitch claim, and that even the company’s own analysis shows the supposed error only impacted a small fraction of her spins.

The outcome could set an important precedent for how future disputes between online gamblers and casino operators are handled in Michigan.

BetMGM Silent on Ruling

BetMGM has declined to comment on the latest development. The operator remains a dominant force in Michigan’s online gambling market, with its Detroit-based platform generating more than $1.7 billion in gross revenue since its 2021 launch.

Still, the ruling could introduce more scrutiny into how online casino game malfunctions are managed and how transparent operators must be when high-dollar payouts are at stake. As for Davis, her case is far from over. But thanks to the Michigan Supreme Court, she’ll now have the chance to argue it in front of a jury.

Timeline of Key Events:

• March 18, 2021: Davis begins playing Luck O’ the Roulette on BetMGM with $50.
• March 23, 2021: Account balance reaches $3.2M; $100,000 is withdrawn.
• June 2021: Davis files suit in Wayne County Circuit Court.
• 2022–2023: Lower courts dismiss case; Davis appeals.
• July 23, 2025: Michigan Supreme Court rules Davis has the right to sue.