Do you think we will see more cases where online casinos refuse to pay?

[Editor's Note: The answer to this question is written by Arnold Snyder. If you think Snyder knows only about blackjack, you should pick up his new book Radical Blackjack. There's a whole chapter on beating the online casinos.)

This question was asked in regards to a Michigan woman who recently won $3 million gambling online at BetMGM, playing the “Luck o’ the Roulette” promotion in March. Afterwards, she was informed that due to a “glitch” in the software, BetMGM wasn't required to pay her. Instead, they offered her $100,000 to go away and not tell anyone about it. You can read the Newsweek report about the incident here.

The only reason we’re hearing about this incident at all is because the amount in dispute is so big, the online casino is a major corporation, and the woman has taken her case to court.

Prior to 2006, when the U.S. government passed a bill that disallowed banks from doing transactions with online casinos, millions of people in this country were gambling online at thousands of online casinos. Many professional gamblers (myself among them) were playing online games. Needless to say, there were continual reports of online casinos refusing to pay winners and a number of websites (including one of my own) were posting warnings about disreputable online casinos to avoid.

In much of the world even today, disreputable online-casino operators are still fleecing players. One big problem with igaming is that in many jurisdictions where these casinos are located, there are no gaming regulations or laws against running crooked online games.

But this Michigan woman is faced with a different situation entirely. As per the details provided in the Newsweek article, according to the woman’s attorney, BetMGM is required to verify the accuracy of their online games every 24 hours and the woman won this money over a five-day gambling binge. She was never informed of any software glitch and didn’t learn about it until she tried to cash out.

So isthe casino at fault for not verifying the accuracy of their games as per the law? If so, are they liable for paying her win due to their negligence? My opinion is, a good attorney should have a field day with this case.

For example, one question the attorney brings up in the article is, "Did everyone who lost money (on this game) get their money back?” My guess is that someone at MGM has a migraine headache over this mess.

Personally, I would trust the big corporate casinos that now offer online gaming to provide fair games and to pay all legitimate winners. If you play online, stick to the name-brand casinos regulated by the same state laws as their brick-and-mortar counterparts. Bottom line: This case is an aberration.

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Kevin Lewis Aug-05-2021

Only a fool...

...would ever play at an online casino, including a "reputable" one or one owned by a large corporation. What is your assurance that the games are fair and honest? What is your recourse if you're cheated or stiffed?

If you can even find out where these casinos are based (just TRY!), it's often on Sand Crab Island and you need the written approval of the Big Mango to file a court action. The Mango will generously allow you to do so if you pay him a $100,000 fee. Cash.

kennethross Aug-05-2021

Broad strokes

While I’ve chosen not to gamble online for the very reasons cited above, it may perhaps be overreaching to paint “fool” on he who answered this LVA question and on so many others.
I suspect that some people tried online gambling simply to try it out and gain familiarity, and that others played because no superior alternative was at hand.

Pat Higgins Aug-05-2021

Big Tex

We will never play on line in he future.  We tried online with regular poker --we had a $200 bank roll with some casino--probably on Sand Island as mentioned above--and lost the amount in a heart beat.  Know it was rigged.

jay Aug-05-2021

Online Cheat

What is not clear from the QOD response Is BetMGM - MGM as in the same company / subsidiary as the LasVegas casino group ?

Online Poker to me is not the same game as playing at the casino or with your buddies in the basement. In a face to face game you can read tells / behaviors etc. If you watch the pros - they wear glasses, hoodies, and try very hard to control their behaviors such as how they throw the chips in the pot. None the less its the tells and face to face play that makes the game. You take it online and all of this doesn't exist.

Assuming a legit game where the house only takes the house vig from the pot, If you have 3 buddies playing an online game with several other unknows you could easily open a second chat session, perhaps even on a second PC, share your cards, build a strategy to fleece the table. I am sure this is already being done. 

My concern is am I playing against other humans or an aggressive AI if there were not enough bums in seats.

O2bnVegas Aug-05-2021

Foot inserted?

Kevin, has it occurred to you that you publicly labeled Arnold Snyder, a successful author associated with LVA, a "fool"?  This isn't Kitchen Sink, after all.

While I have no interest in online gambling, this was an interesting story and I appreciate Mr. Snyder's synopsis as well as the link to the Newsweek article.  Hope to get the followup.

Candy

Carl LaFong Aug-05-2021

Candy...

Kevin leads a bitter life as a know-it-all. Just ignore him.

Roy Furukawa Aug-05-2021

Typically Corporate

She is feeling what we've all experienced of corporations running casinos,do everything to fleece the customers and even more to keep from having to pay them or heaven forbid, offer more comps.

Jon Anderson Aug-05-2021

online gambling lesson

a few years ago, i was playing online poker at full tilt poker when the feds shut it down. there was scandal, intrigue, and lots of other salacious things that make for a good read but a bad experience. all the monies were frozen until approx 4 years later when pokerstars bailed us out by buying ftp's assets ( ? ). the us doj (dept of justice) distributed any documented claims and i finally received my winnings/earnings. others weren't as lucky for whatever reasons. you pay your money, you take your chances. 
oh yeah, and we all lived happily ever after. fin

Marty Aug-05-2021

Black Friday

Yes, I had been playing poker online too and getting a monthly check without putting in any of my own money.

O2bnVegas Aug-05-2021

Carl LaFong

Carl, try as I might I cannot ignore Kevin.  He has a humorous side  from which I get a lot of laughs.  E.g the second paragraph of his response to this QoD (which I fussed at him about...I'm older and wiser...older anyway...LOL).

Candy

Kevin Lewis Aug-05-2021

I maintain...

...that gambling online is asking for trouble. Snyder reported that he used to gamble online even though he was well aware that many sites cheated and/or didn't pay their customers. This doesn't jive as far as I can see, but maybe his other opportunities were drying up. The distinctly nonzero possibility of being ripped off definitely subtracted from EV, though. I did read that signup bonuses often made plays worthwhile---my experience was that I bought in on two sites for $250 each, and in a few days, the money was gone--without my playing at all.

Now, he says we should trust the big casino corporations. Ooookay. Maybe so. IMHO they've shown themselves to be unethical on myriad occasions. I think it's significant that in the case Snyder mentioned, they offered the player 3% of what she'd won as hush money. If their games were/are aboveboard and honest, why didn't they just pay her the $3 million? It would have cost about eight seconds' worth of corporate revenue.

Question of the Day - 05 August 2021

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