WHITE PLAINS, N.Y. (Legal Newsline) - BetMGM is fighting a class action lawsuit over free bet offers by pointing to an arbitration agreement to which it says the plaintiff agreed.
The online gambling platform filed a motion to dismiss June 12 in New York federal court in Kenneth Sales' lawsuit, which claims BetMGM lures novice gamblers with deceptive offers.
Sales created his account and used BetMGM's services through its Arizona platform. He then placed and lost a $10 bet.
"Three months later, Mr. Sale filed a nationwide putative class action against BetMGM, launching a host of meritless consumer protection claims concerning BetMGM's sign-up promotions and marketing materials. But the Court should not wade into the merits of Mr. Sale's claims because they belong in binding arbitration."
BetMGM's sign-up process included a box to check that the user had read the terms of service. The text was written in bold and the terms were available through a hyperlink.
The terms included an agreement to arbitration "all other actions or proceedings arising in connection with, touching upon, or relating to these terms, the service(s) (including the gaming services), the platforms, wagering transactions, the site, the app, or the alleged breach of these Terms of Service."
The terms also included a broad class action waiver, the motion says.
"Mr. Sale cannot avoid the Terms of Service by claiming he never read them," the motion adds. "Mr. Sale cannot reasonably contest that he was unaware of the Terms of Service, either...
"Here, BetMGM provided Mr. Sale with clear and conspicuous notice of the Terms. The final step of the sign-up flow process featured in the largest text on the screen, in bold type, flushed center, and at the top: 'confirm that you've read the terms of service below.'"
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.