In a notable decision, a federal appeals court upheld the dismissal of a lawsuit from Sam A. Antar, who identified himself as a problem gambler. Antar brought the suit against several casinos and online gaming operators, including BetMGM, MGM Resorts International, B Online Casino, and the Borgata Hotel Casino & Spa. He accused them of negligence and Consumer Fraud Act violations, asserting that they enticed him to gamble through cash bonuses and other incentives despite knowing about his addiction.
The 3rd U.S. Circuit Court of Appeals confirmed the 2024 decision by New Jersey District Court Judge Madeline Cox Arleo. The appellate court stated, "Recognizing that New Jersey does not impose a duty of care on casinos over problem gamblers, statutorily or through caselaw, the District Court properly dismissed Antar’s negligence claim."
Antar claimed in court documents that he gambled over $24 million and placed more than 100,000 online bets between June 2019 and January 2020. However, the court noted his failure to specify financial losses, a requirement to establish a Consumer Fraud Act violation, stating, "Antar does not explain how the court would be able to differentiate the losses he suffered as a result of the defendants’ alleged conduct versus those losses he suffered as a natural result of playing a game where the odds are stacked against the player."
The appellate court found that the criteria for Consumer Fraud Act violations, which include proving fraudulent or misleading information, were not met. "Antar was fully aware that the text messages from his VIP hosts offering bonuses, credits, and deposit matches were exactly as the hosts represented – enticements to continue to gamble," the court explained. "Following New Jersey Supreme Court precedent, Antar fails to plead that the defendants engaged in unconscionable business conduct under the CFA."
Attorney David Kott of McCarter & English represented NJBIA and other organizations that supported the businesses by filing an amicus brief in the case.
In his past, Antar faced legal issues, being sentenced twice on criminal charges linked to fraudulent investment schemes. In 2023, he admitted to federal securities fraud and agreed to pay $655,754 in restitution as part of a case by the U.S. Securities and Exchange Commission.
