Online gambling players have the right to file common-law lawsuits against gaming license holders, ruled the Michigan Supreme Court.
In a landmark ruling, the Michigan Supreme Court has decided that a statute legalising online betting does not preclude a plaintiff from bringing certain common-law claims against an online gambling license holder. This ruling, made in the case of Davis v. BetMGM, was unanimously passed on Tuesday.
The ruling, penned by Justice Brian Zahra, suggests that a dispute between a patron and the holder of a gambling license can potentially involve claims such as breach of contract, negligence, unfair deceptive practices, and fraud. The specific claims available in the Davis v. BetMGM case would depend on the details of Ms. Davis's case, which centres around the alleged improper withholding of over $3 million in winnings due to a "glitch" in an online roulette game.
The Michigan Supreme Court's decision overturns lower court decisions made by the Michigan Court of Appeals and the Wayne County Circuit Court. This means that the case can now proceed in the lower court as it moves forward.
The ruling does not prevent the lower court from having jurisdiction over the case. It also clarifies that the Michigan Legislature did not intend for the Lawful Internet Gambling Act to prevent litigants from bringing common-law claims related to gambling disputes.
Interestingly, the patent associated with the online gambling venue remains a party in the case. This means that the patent holder could potentially be held accountable for any alleged breaches of contract, conversion, or fraud.
The ruling is significant for online gambling in Michigan, as it establishes that common-law remedies are still available to litigants involved in gambling disputes. This could potentially open the door for more legal challenges in the future, as more people engage in online gambling and encounter issues with their winnings.
In conclusion, the Michigan Supreme Court's ruling in Davis v. BetMGM allows for a legal dispute over large online betting winnings to proceed in the lower court. The ruling clarifies that common-law claims such as breach of contract, negligence, unfair deceptive practices, and fraud can still be made against an online gambling license holder. This ruling could have far-reaching implications for the online gambling industry in Michigan and beyond.
The Michigan Supreme Court's ruling in Davis v. BetMGM extends to disputes not only over breach of contract or negligence, but also unfair deceptive practices and fraud, as these common-law claims can be initiated against an online gambling license holder. Moreover, this decision may encourage sports enthusiasts to explore sports-betting and casino-games, as they might now feel more protected when encountering potential issues with winnings, given the court's clarification that the Lawful Internet Gambling Act does not hinder such litigation.
