BetMGM Lawsuit Alleges Gambling Addict’s ‘Self-Exclusion’ Listing Was Not Honored

Despite adding himself to a list that is supposed block participation in online gambling, lawsuit claims BetMGM “ceaselessly” hammered the plaintiff with promotions and offers, and ultimately allowed wagers to be placed.

A Tennessee man has filed a lawsuit against BetMGM, alleging that instead of blocking his account, the online sportsbook coached him on how to remove himself from the state’s self-exclusion list, which is designed to prevent problem gambling.

The complaint (PDF) was brought by Dilvar Tayip in the Chancery Court for Davidson County in Nashville in early March, naming BetMGM LLC as the defendant. The case was subsequently removed to the federal court system last week, where it is now pending in the U.S. District Court for the Middle District of Tennessee.

Tayip filed the BetMGM lawsuit after the sportsbook failed to honor his placement on Tennessee’s voluntary self-exclusion list, which was intended to prevent him from gambling through June 2026.

Online Gambling Lawsuits

BetMGM is one of several online gambling platforms that have surged in popularity in recent years, following a U.S. Supreme Court decision that allowed individual states to legalize sports betting and other forms of gambling. However, the platform, along with others like FanDuel and DraftKings, has been increasingly linked to rising reports of gambling addiction problems nationwide.

The impact has been especially significant among young adults, who are often more comfortable using digital payment systems and may be managing their own finances for the first time, making them more vulnerable to compulsive gambling behaviors.

As concerns about marketing efforts employed by these sportsbooks have increased, a growing number of gambling addiction lawsuits are now being pursued against BetMGM and other sports betting apps, each involving allegations that the sites intentionally encourage compulsive gambling and harmful wagering habits, as part of an effort to increase profits at all costs.

BetMGM Self-Exclusion Violations

According to the lawsuit, Tayip has participated in sports wagering for years, yet in June 2021, he placed himself on the Tennessee Voluntary Sports Wagering Self-Exclusion List. This is a program that allows individuals to ban themselves from placing bets and receiving marketing offers from all licensed sports betting platforms for a given period. Tayip set his participation on the list to expire in June 2026. He was also self-excluded from BetMGM’s websites.

However, when Tayip began wagering in May 2023, BetMGM allegedly did not honor its own self-exclusion list. Furthermore, the filing claims the site not only allowed Tayip to gamble, it also coached him on how to get off the state’s self-exclusion list early. He continued gambling until May 2025, with his losses totaling about $300,000.

“By allowing the Petitioner to wager prior to the petitioner’s self-exclusion term ending, and by counseling the petitioner on how to have himself removed from Tennessee’s Self-Exclusion Listing early — which would not have occurred until June 2026 — BetMGM preyed on the petitioner, and, essentially, removed petitioner from his incubation of treatment too early, in violation of their own policies and to the great financial detriment of the petitioner.”

– Dilvar Tayip v. BetMGM LLC

Tayip notes that even if he was removed from one of the lists early, he should have never been removed from both, and that BetMGM failed to follow its own policies and those of the state of Tennessee, in violation of the Tennessee Sports Gaming Act.

Instead, the complaint indicates BetMGM “ceaselessly” solicited him with offers of paid traveling expenses, food, drinks, luxury accommodations and monetary advances throughout the time he was on both self-exclusion lists and combating what he saw as a sports betting addiction.

Tayip’s lawsuit presents claims of violations of the Tennessee Sports Gaming Act and the Consumer Protection Act. It also includes claims of breach of contract, negligence and negligent enablement, negligent misrepresentation, unjust enrichment, breach of implied covenant of good faith, and fraud.

Sports Betting Addiction Lawsuits

The complaint is one of a growing number of sports betting addiction lawsuits being filed nationwide by individuals struggling to fight destructive gambling habits.

Experts suspect that thousands more such claims will be filed in the coming months and years. The claims, frequently brought by young, college-age men, indicate that individuals are being targeted and exploited by aggressive promotions and data-driven algorithms that are able to detect compulsive gambling habits.

Lawsuits claim that apps like BetMGM, FanDuel and DraftKings exploit gamblers using advanced psychological triggers. The platforms may also provide them with further gambling opportunities, including personal representatives whose goal is to convince the players to make more frequent, higher wagers.

Sports betting addiction lawyers are investigating claims across the U.S., focusing on whether these websites intentionally foster compulsive behavior and profit from users’ escalating losses. Platforms named in ongoing investigations include:

To find out whether you qualify for a sports betting lawsuit, submit information about your potential claim for an attorney to review. All cases are handled on a contingency fee basis, meaning you pay nothing unless a settlement is obtained in your case.

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