BetMGM Lawsuit for Online Gambling Addiction [2026 Update]

The Sports Gambling Addiction Lawsuit is an Active Lawsuit

See if You Qualify

BetMGM users are filing lawsuits against the popular sports betting company, alleging that the company uses deceptive tactics and addictive app designs to promote compulsive gambling.

BetMGM lawsuits cite things like misleading bonus offers and retention tactics that lead some people to develop gambling addiction, financial losses, and emotional distress. These practices allegedly caused severe financial losses, emotional distress, and gambling addiction in some users.

This page will cover what BetMGM gambling lawsuits are about, which app features may drive compulsive gambling, and who might be eligible to file a lawsuit for their losses.

BetMGM lawsuits are part of King Law’s broader investigation into online sportsbook betting lawsuits. Many sportsbook companies, including BetMGM, are accused of engaging in practices that are allegedly deceptive or negligent and cause harm to some people.

About the BetMGM Lawsuit:

BetMGM Gambling Lawsuit Timeline

This timeline contains updates about lawsuits filed against BetMGM and affiliated companies. It contains information about gambling addiction lawsuits, failure-to-pay lawsuits, and class action lawsuits filed by consumers.

November 7, 2025: New Jersey Court Denies Dismissal Bid In BetMGM Fraud Lawsuit

A New Jersey state appellate court denies a bid by BetMGM to dismiss a lawsuit claiming the company changed the rules of a contest in progress to favor a high-rolling customer. The complaint, filed by Larry Murk of New Jersey, accuses BetMGM of fraud and breach of contract.

July 24, 2025: Michigan Supreme Court Rules BetMGM Gambler Can Seek Damages

The Michigan Supreme Court ruled that a woman who claims BetMGM wrongfully zeroed out the balance can seek damages against the company. BetMGM claims the game in question, Luck O’ the Roulette, had a glitch that resulted in Jacqueline Davis’s account reaching a balance of nearly $3.3 million when it should have read zero. The Michigan Gaming Control Board claims BetMGM failed to notify them of the malfunction for several days and did not fully cooperate with their investigation.

July, 2025: Woman Sues BetMGM After Platform Took Away $3 Million+ Earnings Due to Alleged Glitch Headline

A woman in Michigan has filed a lawsuit against BetMGM for canceling her $3.2 million earnings after the platform identified an alleged glitch. The woman placed small bets on the platform, which she won, and increased her wagers until her account reached over $100,000. Then she began to place bets that were $5,000 each, which she also won. Her account said she had over $3.2 million in earnings, which she asked to withdraw. However, BetMGM took the money from her and said there was a glitch that showed she had won more than she actually had.

April 29, 2025: Federal Court Upholds Ruling That BetMGM Is Not Liable For Gambling Losses

The Third Court of Appeals upholds a New Jersey District Court ruling that BetMGM was not responsible for the gambling losses of Sam A. Antar, one of its customers. The lower court had ruled that casinos have no legal obligation to stop customers from compulsive gambling and that Antar knew that offers and communications from the company were enticements to gamble. However, emerging lawsuits filed in civil courts are examining how online sportsbook apps may be held liable for some losses, due to the way the companies engage with people on the platform.

March 10, 2025: MGM Resorts Agrees To Settle Data Breach Class Action

MGM Resorts International agrees to a $45 million settlement to resolve a class action lawsuit involving two data breaches that compromised the information of its customers, including BetMGM users. BetMGM users were additionally offered two years of credit monitoring on top of the general settlement. The data breaches occurred in 2019 and 2023.

July 12, 2023: BetMGM Users Agree To Individual Arbitration, Ending “Risk-Free Bet” Class Action

A Manhattan federal judge dismisses a class action lawsuit against BetMGM, noting that users agreed to resolve disputes through individual arbitration as part of BetMGM’s terms of service. The class action lawsuit had alleged that BetMGM’s risk-free bet promotion was misleading.

November 18, 2022: Man Files Lawsuit Against BetMGM, Claims They Changed Rules of Promotion After It Started

A man in New Jersey is suing BetMGM for allowing a VIP player into a contest and changing its rules after it had started. The contest would pay out hefty rewards to players who bet the most on a specific game each week during May 2021. The man claims he wagered over $1.5 million that month to ensure he won. However, he says he came in second because BetMGM allowed a VIP player to enter the contest midway through. The player had not opted in at the start of the contest or placed bets on the correct game. According to court records, BetMGM appears to have manually placed the new player at the top when they were transferred in.

What Is the BetMGM Gambling Lawsuit About?

The BetMGM gambling lawsuits allege that the sports betting company promotes compulsive gambling through its online casino platform and sportsbook. They suggest that the company failed to adequately warn users of the risks or intervene when users showed signs of addiction or financial distress. Further, the claims describe deceptive business tactics such as changing rules mid-contest, losing deposits to supposedly “risk-free” bets, and confusing terms for bet credits.

Allegations in BetMGM lawsuits include:

• Exploitation of some users through VIP host programs
• Exploitative bonus programs and risk-free bets
• Using a platform design and system notifications that encourage compulsive gambling
• Using personalized incentives to target people with problematic gambling
• Failing to enforce rules around deposit limits or self-exclusion
• Overlooking betting habits that indicated emotional distress or dysregulation
• Allowing bets to be placed in states where those bets are not legal

In short, lawsuits filed against BetMGM and other online sportsbook outlets accuse the companies of failing to protect app users and purposefully designing a product that is harmful to some users.

About BetMGM and States Where BetMGM Online Gambling is Legal

BetMGM is a joint venture between MGM Resorts International and Entain Holdings. According to the company, the venture generated more than $2.1 billion in net revenue in 2024. BetMGM was founded in 2018 and is headquartered in New Jersey. Depending on the player’s location, the app allows people to bet on sporting events and to play online poker and casino games.

As of early 2025, some aspects of BetMGM’s online platform are available in the following states (including but not limited to):

• Arizona
• Colorado
• Florida
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maryland
• Massachusetts
• Michigan
• Mississippi
• Missouri
• Nevada
• New Jersey
• New York
• North Carolina
• Ohio
• Pennsylvania
• Puerto Rico
• Tennessee
• Virginia
• Washington D.C.
• West Virginia
• Wyoming

Since its founding in 2018, BetMGM has been expanding the number of states where its online gambling platform can be used. A timeline of this progression can be found on BetMGM’s site.

As more people gain access to BetMGM’s online sportsbook and casino platform, more players may be exposed to tactics that encourage their gambling. For example, a study published in JAMA found that between 2017 and 2024, the amount of money Americans spent on online sports gambling rose from $4.9 to $121.1 billion . In 2023, 94% of those wagers were placed online.

Is There a BetMGM Class Action Lawsuit?

BetMGM has been the subject of multiple class action lawsuits. However, some of these lawsuits have faced challenges due to arbitration clauses in BetMGM’s user agreement terms. These terms waived the right to participate in a class action lawsuit. However, individual cases have been filed against the company, with similar allegations of misconduct. Some civil lawsuits against BetMGM have challenged the legality of these arbitration clauses, given the circumstances of gambling addiction cases.

From Casinos to Smartphones: The Expansion of Mobile Sports Betting

A 2018 Supreme Court ruling, Murphy v. National Collegiate Athletic Association, overturned federal prohibitions on sports betting, paving the way for companies like BetMGM to expand their operations beyond traditional casino gambling and into online markets. The BetMGM sportsbook and casino apps offer “always-on” gambling environments. The ability to gamble at any time of day from almost anywhere can increase the risk of financial losses and addictive behavior in some players, especially in those with problematic gambling habits.

Since this Supreme Court decision, more people are participating in online sports betting. According to a 2025 poll conducted by Sienna College about online sports betting , 20% of people admitted to losing money they could not afford on sports betting apps. Similarly, 34% of people surveyed said they knew someone with an online sports betting problem.

How BetMGM’s Casino-First Platform May Encourage Addiction

Gambling’s addictive potential is well-established, though research into the exact nature of the addictive mechanisms is still evolving. Mobile apps like those offered by BetMGM heighten the risks by removing friction that would be present at a brick-and-mortar casino. For example, in the past, an individual with a sports betting addiction would need to physically go to a casino or gaming outlet to place a bet. BetMGM users, however, have an on-demand casino in their pockets (via a cell phone) with fully integrated, near-frictionless funding options and intrusive push notifications angling for their attention.

This loss of friction makes compulsive, continuous play easier and more common. In fact, one in five Americans has an online sports betting account.

BetMGM Bonus Offers, Rewards Programs, and Advertising Concerns

The allegations against BetMGM include criticisms of specific app features and advertising practices. For example, BetMGM offered a “risk-free” promotion for new sportsbook users that appeared to offer a cash credit. Instead, it provided “bonus bets,” a form of credit with different payouts than cash bets. This promo, along with other features, is accused of obscuring wagering requirements and odds while incentivizing long-term gambling.

Alleged Exploitation Through BetMGM VIP Programs and MGM Rewards

BetMGM rewards high-volume, high-spending customers through loyalty programs, offering bonus credits, tier upgrades, exclusive offers, and personalized outreach, all of which can encourage further play. These incentives were allegedly offered without evaluating warning signs of addiction or financial distress in the user, using player rankings and the lure of future benefits to promote continued gambling.

Financial and Emotional Harm Linked to BetMGM Gambling Addiction

Gambling addiction, such as has been observed in BetMGM users, can result in serious financial and emotional harm. Some people who display problematic gambling behaviors on BetMGM may even develop a gambling disorder , a health diagnosis as classified by the DSM-5 (the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition).

Some individuals suffering from gambling addiction or problematic gambling report:

• Depleted savings
• Debt
• Anxiety and depression
• Relationship strain
• Employment and/or academic issues
• Increased rates of mental health emergencies

According to the DSM-5, there are different types of gambling disorders. Some people have an episodic gambling disorder, while others have a persistent gambling disorder. When someone has an episodic gambling disorder, they may engage in bouts of heavy gambling and then not gamble much in between episodes. Someone with a persistent gambling disorder is more likely to gamble continuously, often over multiple years.

Who Is Eligible to File a BetMGM Lawsuit For Gambling Addiction?

Regular BetMGM users who have experienced compulsive urges while using its gambling platforms may be eligible to file a lawsuit, particularly if the urges continue after suffering substantial financial losses. The exact qualifications can vary depending on your jurisdiction and your experiences on the platforms.

Currently, to file a case with King Law, these are the qualifying criteria:

• Suffering substantial financial losses
• Being allowed to place bets as a minor (under age 18)
• Have received a gambling disorder/addiction diagnosis
• Have placed bets on a BetMGM platform that was illegal in your state
• Have lost money due to a glitch, malfunction, or unexpected rules change on the platform

These are examples of criteria that may qualify you or a loved one to file a lawsuit with our firm. These criteria could change throughout the legal process. Please contact our team with questions on specifics.

How to File a BetMGM Lawsuit for Gambling Addiction

Filing a gambling lawsuit is usually best undertaken with the help of a sports betting lawyer. Gambling addiction lawsuits tend to follow these steps:

1. Consult with an attorney with experience in gambling addiction cases.
2. Collect evidence, including betting records, communication from BetMGM (including bonuses and rewards), mental health records, and bank records.
3. File the case in your jurisdiction within applicable deadlines. Your lawyer may also advise you to hold off on filing your case until certain legal procedures have occurred.
4. Your lawyer will attempt to negotiate a settlement. If one can’t be reached, your case may go to trial.

People who have incurred substantial financial and emotional losses can consult with a personal injury attorney experienced in these types of lawsuits. They can advise the potential client on the best legal path forward.

What Is the Deadline to File a BetMGM Gambling Addiction Claim?

BetMGM gambling addiction claims need to be filed within your state’s statute of limitations. These timelines vary from state-to-state. Even within a given state, the statute of limitations can vary based on the legal theory under which the claim is made (consumer fraud, negligence, breach of contract, personal injury, etc.) and when the plaintiff became aware of their addiction.

Your BetMGM lawsuit may not be filed in the state where you reside. Instead, the lawsuit may be filed in federal court or in the state where BetMGM is headquartered (in New Jersey). A lawyer can advise on which statutes may apply to your case.

Statutes of limitations for these cases generally range between 1 and 6 years. Consult with an attorney to ensure you don’t miss any critical deadlines.

BetMGM Lawsuit Settlements and Potential Compensation

Many of the lawsuits against BetMGM are still in progress or have been resolved quietly. Exact payout amounts vary depending on the losses suffered by the plaintiff and the extent of wrongdoing on the part of BetMGM. As for settlements on record, one victim of the “risk-free” betting promotion was offered $12,000. The data breach class action lawsuit resulted in a $45 million global settlement, with individual payouts ranging from $20 to $15,000 beginning in December 2025. Past results do not guarantee future outcomes.

When Is the BetMGM Lawsuit Payout Date?

There is no confirmed deadline for BetMGM lawsuit payouts. Payout timelines can vary based on whether the cases settle out of court, go to trial, or are resolved through regulatory actions.

Sign Up For a BetMGM Gambling Lawsuit With King Law

King Law is currently reviewing gambling addiction claims related to BetMGM gaming platforms. Our experienced legal team offers free, confidential case consultations and can evaluate whether BetMGM’s conduct and your losses support a legal claim. Consultations are risk-free, with no obligation to move forward. King Law is also investigating gambling addiction cases from people who incurred significant losses on DraftKings, FanDuel, Caesars, and other sportsbook betting platforms.

Talk to a BetMGM Gambling Addiction Lawyer Today

If you believe you’ve suffered the damaging effects of gambling addiction due to your use of BetMGM’s sportsbook or casino apps, King Law can help evaluate your legal options. Call us today for a free, no-obligation consultation at (585) 496-2648. We only take payment if we are able to secure you compensation.

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