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Judge rejects class action against MGM over small change at casinos

LEGAL NEWSLINE

Thursday, November 21, 2024

Judge rejects class action against MGM over small change at casinos

Federal Court
Fate

JACKSON, Miss. (Legal Newsline) - MGM Resorts has defeated a proposed class action lawsuit brought by an unhappy gambler who couldn't figure out how to redeem a ticket for 19 cents.

Leane Scherer sued MGM in September in Mississippi federal court, arguing the company deprived hundreds of thousands of its casino patrons with a "no-change policy" that forces gamblers to visit the casino cage to get their change.

Scherer cashed out for $18.19 at the Beau Rivage casino. She took the voucher to an automated kiosk, which gave her $18 in cash and a ticket redeemable at the cage for 19 cents. That ticket is known as a Tru Tricket.

Judge Halil Suleyman Ozerden on April 4 said his court did not have jurisdiction over the dispute. Scherer could not show at least $5 million is in controversy - a requirement for federal jurisdiction under the Class Action Fairness Act, he ruled, while also agreeing with MGM that the dispute belonged before the state's Gaming Commission and not a judge.

Scherer had argued remedies at the Gaming Commission were inadequate she would only receive her change and not be able to pursue consumer protection claims under the class action mechanism.

"(B)ut it is unclear what remedies besides her change she would be entitled to before this court," Ozerden wrote. "Based on the Court's reading of the amended complaint, she is not seeking an injunction or other remedy besides monetary compensation... nor has she explained how this Court would have the authority to order Defendant to start dispensing coins at its kiosks or posting whatever notice she believes is necessary according to an implied contract of gambling.

"Plaintiff has not shown how the Gaming Commission would be unable to provide her with the remedy she seeks here..."

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