WHITE PLAINS, N.Y. (Legal Newsline) — A New York man alleges in a class action lawsuit that BetMGM negligently lures novice gamblers with deceptive "free bet and risk-free bets" offers.
Kenneth Sale, individually and on behalf of all others similarly situated filed a complaint March 3 in the U.S. District Court for the Southern District of New York against BetMGM LLC alleging violation of New York General Business Law, negligent misrepresentation and other claims.
Sale alleges in his class action that BetMGM uses "untruthful and deceptive promises" in an effort to sign up new customers by offering a "free bet or risk-free bet." He claims BetMGM uses complicated deals such as requiring a deposit and if the bet loses, the customer is credited with the amount lost not in cash but in bet credits that must be used on the BetMGM app and expire in seven days.
Sale further claims BetMGM's customers would then receive no compensation for subsequent bets and would have to win a subsequent bet or a series of bets just to break even. He alleges that BetMGM's actions cause gambling novices to gamble "over their heads."
Sale and the class seek monetary relief, interest, trial by jury and all other just relief. They are represented by Andrew Shamis of Shamis & Gentile PA in Miami; Jeffrey Kaliel and Sophia Goren Gold of Kalielgold PLLC in Washington, D.C.; and Adam Schwartzbaum of Edelsberg Law PA in Aventura, Florida.
U.S. District Court for the Southern District of New York case number 1:23-CV-01872