BetMGM Fraud Lawsuit Continues Following Failed Dismissal Attempts

New Jersey Court Allows BetMGM Lawsuit to Proceed

A judge from the New Jersey Superior Court has refused to dismiss a lawsuit involving BetMGM, which alleges the gambling company altered the rules of a widely followed casino competition during its course. This decision means the case will continue moving through the legal system as scheduled, representing further challenges for BetMGM as it prepares for an upcoming rebranding.

Claims of Favoritism Toward a High-Stakes Gambler

Judge Danielle Walcoff denied BetMGM’s request to dismiss a complaint brought forward by Laurence Murk, a resident of Franklin Lakes. Murk’s lawsuit contends that BetMGM manipulated its “2 Million Dollar Super Series” contest to benefit a high-stakes player. As a result, allegations of fraud, breach of contract, and violations of the New Jersey Consumer Fraud Act will now move to the discovery phase.

Participating in the month-long event in May 2021, which offered a $500,000 bonus and daily free spins to the leaderboard’s top player based on total wager amounts, Murk invested around $1.5 million in bets to maintain his leading position. However, on May 11, Murk unexpectedly lost his spot at the top when a new user named “Broker” appeared with an astonishing 800,000 points gained overnight. Murk suspects BetMGM staff unlawfully credited these points and allowed Broker to compete despite not meeting the qualification criteria for the contest.

Judge Notes Issues with BetMGM’s Actions

Murk accuses BetMGM of engaging in deceptive practices and unlawful conduct by encouraging continued gambling without intending to honor the competition’s promised rewards. He further claims that BetMGM tried to mislead state regulators after questions about the sudden leaderboard changes. Despite these concerns, the New Jersey Division of Gaming Enforcement has classified the incident as a promotional dispute and declined to intervene.

Choosing to handle the matter privately, Murk alleges that BetMGM inserted Broker into the contest as a special exception due to his status as a high roller, without notifying other participants about any rule changes allowing this. Additionally, Murk’s legal team argues that the general terms and conditions did not govern this specific promotion.

Judge Walcoff highlighted that BetMGM’s failure to inform players about Broker’s inclusion, along with the absence of proof that Murk accepted promotion-specific terms, provided satisfactory grounds to deny dismissal. If Murk prevails, he could be awarded over $2.5 million in damages, including lost prizes and estimated future earnings from the contest.