Online Gambler Unsuccessful in Lawsuit Against MGM Resorts Over $25 Million Loss
A Gambler's Failed Lawsuit Against MGM Resorts
Sam Antar, a high-rolling gambler who lost a staggering $25 million through BetMGM and Borgata online casinos, has seen his lawsuit against MGM Resorts shots down. Antar claimed that the company was responsible for enabling his excessive gambling by encouraging him with VIP perks despite clear signs of problematic behavior.
Historically, courts across the nation, particularly in New Jersey, have turned a blind eye to the notion that casinos should bear a duty of care towards compulsive gamblers. This trend was exemplified in the Antar vs. MGM Resorts case.
On Monday, a judge panel dismissed Antar's original 2020 case after an appeal. In their verdict, they reiterated that courts nationwide have consistently rejected the idea that casinos have a responsibility to safeguard compulsive gamblers from their own losses. Senior US Circuit Judge Jane Richards Roth noted that casinos in New Jersey enjoy substantial protection from private litigation.
Antar's attorney contended that the role of a VIP host is akin to that of any other salesperson, and as such, the host's awareness of the client's gambling issue transformed the selling of a harmful product into an illegal act, contravening state law. In the period from June 2019 to January 2020, two hosts sent over 1,800 text messages to Antar, culminating in his massive losses on the BetMGM and Borgata Online casinos. Regrettably for Antar, the judges decided that none of these communications were misleading.
Insights:Based on recent court decisions, particularly in New Jersey, U.S. courts have generally resisted imposing liability on casinos for failing to protect compulsive gamblers from their losses. The Antar vs. MGM Resorts case illustrates this point, as the Third Circuit Court of Appeals upheld the dismissal of Antar’s lawsuit, stating that New Jersey law does not acknowledge a duty of care for casinos to safeguard compulsive gamblers from their losses [1][3]. The New Jersey Casino Control Act (CCA) and existing case law provide extensive protections for casinos from private lawsuits over gambling addiction-related claims [1][3].
While Antar alleged that MGM’s VIP program and hosts bombarded him with promotional messages to exploit his addiction, the court ruled that such incentives do not amount to fraud or negligence under state law [1][3]. The ruling doesn't preclude liability for fraudulent practices or deceptive marketing, but it does confirm that merely incentivizing wagering, even towards known addicts, doesn't generate liability under current New Jersey law [1][3][5]. Similar lawsuits, including recent ones against DraftKings, face an uphill battle unless plaintiffs can prove intentional misconduct or deceptive marketing beyond standard promotions [5].
- Despite his lawsuit against MGM Resorts, Sam Antar, a compulsive gambler who lost over $25 million at Borgata and BetMGM online casinos, has seen his case dismissed by a judge panel.
- Historically, courts in New Jersey, like the one in Antar vs. MGM Resorts, have refused to hold casinos responsible for safeguarding compulsive gamblers from their own losses.
- The ruling on Antar's appeal reaffirmed that U.S. courts, particularly those in New Jersey, have consistently rejected the idea that casinos have a duty of care towards compulsive gamblers.
- Antar's attorney argued that VIP hosts, who sent over 1,800 text messages to Antar between June 2019 and January 2020, should be held accountable for promoting harmful casino-games and lotteries to a known addict.
- However, the judges decided that none of these communications were misleading, and that mere incentivizing of wagering, even towards known addicts, doesn't constitute fraud or negligence under New Jersey law.
- Future lawsuits, such as those against DraftKings, may struggle to prove their case unless plaintiffs can demonstrate intentional misconduct or deceptive marketing beyond standard casino-and-gambling promotions.
