MGM Resorts International was cleared of any liability in a federal lawsuit Sam A. Antar filed. Antar is a New Jersey man who claimed he lost nearly $25 million to his compulsive gambling at the casino company's websites, one of which laid off 83 employees earlier in the year.
On Monday, the U.S. Court of Appeals for the Third Circuit affirmed an earlier lower court decision, holding the casino firm is not legally liable for Antar's losses.
Key takeaways
- Court rules MGM not liable for compulsive gambler’s $25 million in voluntary betting losses.
- Judges found no legal duty for casinos to protect individuals with gambling addictions.
- Consumer fraud claims rejected due to lack of false or deceptive conduct by MGM’s VIP hosts.
In the 2022 lawsuit, Antar alleged MGM and its affiliates were negligent and guilty of consumer fraud under New Jersey law. He claimed the company's VIP hosts lured him by offers and with the operator aware of his gambling addiction. He alleged they were responsible for their conduct in encouraging further gambling and causing substantial money losses.
The court found no basis in law to hold MGM responsible. In Senior U.S. Circuit Judge Jane Richards Roth's view, the panel ruled that casinos under New Jersey law—or standard legal precedent—are not obligated to refrain from protecting persons with gambling addiction.
The ruling invoked protections under the New Jersey Casino Control Act, which aims to preserve the integrity of the casino industry and protect consumers. Judges Stephanos Bibas and Cindy K. Chung agreed with Roth in affirming the district court decision. They decided MGM's actions were not negligent since casinos aren't legally required to protect problem gamblers from harming themselves.
Antar's lawyer, Matthew Litt, argued MGM's hosts were akin to pushy salespeople, exploiting his weakness by pushing him to gamble more. He likened their tactic to selling an addictive product to a willing buyer with no self-control.
The judges, however, could not establish any legal ground for this claim.
Consumer fraud violation rejected
The court also denied Antar's claim under the New Jersey Consumer Fraud Act. Though Antar accused MGM of sending false gambling offers, the judges couldn't establish the messages were false or against the law.
Antar received over 1,800 messages from MGM hosts between June 2019 and Jan. 2020 and made over 100,000 wagers over the period. Notwithstanding the substantial amount of contact, the court held Antar couldn't demonstrate how the messages inaccurately represented the services provided.
Moreover, the court ruled Antar could not particularly demonstrate his losses resulted directly from MGM's actions. While he asserted services provided to a gambling addict were inherently worthless, the court ruled otherwise, that each bet yielded exactly what it promised — an opportunity to win, with no assurance of victory.
The ruling confirms casinos aren't legally liable for their patrons' voluntary gaming behavior, even where addiction is present. It's a significant legal victory for MGM Resorts. The operator was plagued with controversy over recent weeks, with the Nevada Gaming Commission fining MGM $8.5 million for its role in letting illegal bookmakers gamble at its Las Vegas properties.
