Class Action Lawsuit Alleges MGM Is ‘Robbing’ the Change of Gamblers

  • The lawsuit claims that MGM does not properly explain its cash-out system at its casinos
  • Automated kiosks issue a ticket to people who have a payout due worth less than $1
  • Players would then have 30 days to redeem the value of the ticket at the cashier cage
  • Plaintiff Leane Scherer is seeking damages as part of the class-action lawsuit
Person putting money into slot machine
A class action lawsuit filed in Mississippi alleges that MGM Resorts International has been effectively “robbing” change from its gamblers. [image:]

A big earner

A new class action lawsuit filed against MGM Resorts International claims that the casino giant has been stealing change from its customers at its various US properties.

essentially robbing their customers a few cents at a time, on millions of transactions”

The filing in the US District Court for the Southern District of Mississippi alleges that the casino company has repeatedly broken its contract with patrons by not fully paying out cash-out tickets. As a result, MGM is “essentially robbing their customers a few cents at a time, on millions of transactions,” the suit asserts.

New Orleans resident Leane Scherer, the main plaintiff of the suit, claims the casino is effectively charging a tax on gamblers by not sufficiently explaining the cash-out system. According to Scherer, MGM has failed to provide enough useful info around kiosks instructing players how to redeem the tickets for cash.

Cash for tickets

Scherer is aiming to represent a nationwide group of people who have been deprived their change at an MGM property through the cash-out gaming voucher system since September 19, 2012.

Casinos sought to decrease the number of touch-related transactions

The issues allegedly began rising in prominence during the COVID-19 pandemic. Casinos sought to decrease the number of touch-related transactions by providing tickets for any sums worth less than $1.

As per this system, if you won $3.48 playing a slot machine, you could receive three $1 bills from an automated kiosk and a ticket worth $0.48. To redeem the ticket worth $0.48, you would need to line up at the cashier cage. Many casinos use a similar approach but allegedly have much clearer instructions on how to redeem the tickets for cash.

30-day expiry

As reported by 8newsnow, the lawsuit claims MGM casinos are making huge sums from the current cash-out system. Many gamblers hold onto the tickets and do not realize that they will expire after a 30-day period, a condition outlined in the fine print.

According to Nevada state law, casino tickets will always expire after 180 days. The state then gets to keep 75% of the ticket value, with the remaining money going to the casino. A recent Las Vegas Review-Journal report claims the state received more than $16.5m in the fiscal year 2022 through unclaimed tickets.

Scherer is seeking damages through the class-action lawsuit. The legal action lists MGM properties from all across the US, including in Nevada, New York, Mississippi, and Michigan.

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