BetMGM Case Dismissal by Problem Gambler under Appeal

Several years ago, Sam Antar, the nephew of the founder of the now-defunct “Crazy Eddie” electronics store chain, Eddie Antar, filed a lawsuit against the leading gaming and betting operator, BetMGM, the Borgata and other defendants. In his lawsuit, he claimed that BetMGM offered him benefits although it was aware of his gambling addiction.

Antar alleged that his losses were close to $30 million for a period between May 2019 and January 2020. The plaintiff claimed that despite his gambling addiction, the operator lured him with lucrative bonuses, exacerbating the issue and resulting in him losing more than he could afford. In his lawsuit, Antar claimed BetMGM breached the New Jersey Consumer Fraud Act (CFA) after it enticed him with bonuses although it was aware that he suffered from problem gambling.

Late last month, Antar’s lawsuit against BetMGM was dismissed. The decision came from District Judge Madeline Cox Arleo who explained in her judgment that the Casino Control Act (CCA) supersedes the CFA. In her ruling, the Judge explained that while gambling addiction is labeled as a substance addiction disorder in the DSM 5, there are currently no legislative repercussions that require casinos not to entice individuals who exhibit problem gambling behavior.

Despite the dismissal, Antar confirmed his intention to file an appeal, judging by a notice of appeal dated February 26, 2024. Ultimately, with the notice of appeal, the plaintiff asks the US Court of Appeals for the Third Circuit to reinstate his case against BetMGM and the Borgata, among other defendants.

The Case Raises Concerns about the Duty of Care for Gambling Operators

The recently filed appeal comes as no surprise, considering that Antar hinted at such a possibility once his lawsuit was dismissed late in January. But his lawsuit represents more than just a legal claim as it raises concerns about the gambling operators’ duty of care in New Jersey.

Keith Whyte, the National Council on Problem Gambling’s executive director, who was interviewed by US Bets recently, spoke about the growing need for duty of care for gambling operators in New Jersey. He explained: “There absolutely should be a duty of care. It does a major disservice to the industry by not having one. It’s a massive risk.”

According to Whyte, a winning move for the gambling sector is to unite and establish a duty of care. This is because, he predicted, that duty of care will be established sooner or later, but if the sector doesn’t lead those efforts, they can suffer from a negative impact.