Article – USA: ‘House always wins’: LIGA preempts claims against gaming website

Michigan Lawyers Weekly

‘House always wins’: LIGA preempts claims against gaming website

A woman’s claims of fraud, conversion and breach of contract against an online gaming website that zeroed out her account balance of more than $3 million are preempted by the Lawful Internet Gaming Act, or LIGA, a split Michigan Court of Appeals panel has held.

The woman said the trial court erred when it granted the defendant’s motion for summary disposition based on lack of subject-matter jurisdiction.

Judge Mark T. Boonstra disagreed

“Although plaintiff argues that the letter she received from the [Michigan Gaming Control Board] indicated that the MGCB lacked the authority to resolve her dispute, it is clear that the MGCB had the power under LIGA to investigate disputes such as plaintiff’s, to determine whether a violation of LIGA or the rules promulgated under it had occurred, and to require corrective actions from an internet gaming provider,” he explained. “The fact that the MGCB did not or will not take action in plaintiff’s favor in this particular case does not alter our preemption analysis.”

Judge Anica Letica joined Boonstra’s published decision in Davis v. BetMGM LLC (MiLW 07-107233, 8 pages).

In a dissent, Judge Kathleen A. Feeney said the majority’s decision left Davis without a forum to pursue a remedy.

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