You’re staring at the screen. The lights are flashing. The sirens are screaming. Your heart is basically thumping out of your chest because the slot machine says you just won $42.9 million. But then, the music stops. The lights dim. A floor manager walks over, avoids eye contact, and tells you the words that make every gambler’s blood run cold: "The machine malfunctioned."
It sounds like a nightmare. It’s actually a reality for people like Katrina Bookman and Pauline McKee.
If you’re wondering can you sue a casino for not paying out, the short answer is technically yes, but the long answer is a brutal uphill climb through a system designed to protect the house. Most people assume that if a machine says you won, it’s a contract. It isn't. In the world of gambling law, the "glitch" is the ultimate get-out-of-jail-free card for the casino.
The Slot Machine Malfunction Loophole
Casinos almost always have a tiny, faded sticker somewhere on the machine. It says "Malfunction voids all plays and pays." Those six words are the bane of every gaming lawyer’s existence.
In 2016, Katrina Bookman thought she hit a life-changing jackpot at Resorts World Casino in Queens. The machine displayed a win of $42,949,672. The problem? The machine she was playing, a Sphinx slot, had a maximum payout of only $6,500. The New York State Gaming Commission stepped in and ruled the win was a "clear malfunction." Instead of forty-two million dollars, the casino offered her a steak dinner and the $2.25 she had actually won during the spin.
She sued.
But here’s why these cases are so hard to win. When you play a slot machine, you aren't just making a bet with a private business; you are entering a highly regulated ecosystem overseen by state gaming boards. Most courts have ruled that if the regulator says the machine broke, the casino doesn't have to pay. It’s not just a matter of "the casino said so." It’s a matter of administrative law.
Why the Courts Usually Side With the House
Think about it this way. If you buy a lottery ticket and the printer accidentally adds five extra zeros to the prize amount, the state doesn't suddenly owe you hundreds of millions. They owe you what the rules of the game dictate.
Courts generally view slot machines as computers. If the code says the max win is $10,000, and the computer's display fails and shows $1,000,000, the "real" event is the code, not the screen. This was famously tested in the case of Pauline McKee in Iowa. She was 87 years old, playing a "Miss Kitty" game, and the screen told her she won $41 million. The Iowa Supreme Court eventually ruled against her because the game's rules—which were available if she had clicked through enough menus—stated the maximum prize was much lower.
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It feels like a scam. It feels like the house is cheating. But legally, it's considered a technical failure of a regulated device.
Can You Sue a Casino for Not Paying Out on Table Games?
Table games are a different beast. There is no "software glitch" when a dealer accidentally flips a card or a roulette ball bounces weirdly. Here, the disputes usually involve allegations of cheating, edge sorting, or "advantage play."
Take the legendary case of Phil Ivey.
Ivey, one of the greatest poker players to ever live, won roughly $10 million at the Borgata in Atlantic City using a technique called edge sorting. He noticed that certain decks of cards had tiny imperfections on the back patterns. He used this to identify high cards before they were flipped.
The Borgata paid him. Then they found out how he did it. They sued him to get the money back.
In this scenario, the question of can you sue a casino for not paying out flips. Can the casino sue you to get the money back? Yes. And in Ivey's case, the courts ruled that while he didn't "cheat" in the traditional sense, he breached his contract with the casino by playing a game that wasn't random. He had to pay back the winnings.
If a casino refuses to pay you at a table because they think you’re counting cards, they can’t usually keep the money you’ve already won—unless they can prove you violated the law or used a device. If they just suspect you’re too good, they can kick you out and "trespass" you, but they generally have to color you out first.
Tribal Casinos: A Legal Dead End?
This is where things get really complicated. If you are playing at a casino on tribal land, you aren't in Kansas anymore. You are in a sovereign nation.
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You cannot simply walk into a state court and sue a tribal casino. They have "sovereign immunity." This means you can only sue them if they allow you to sue them, and usually only in their own tribal courts.
- Tribal laws differ significantly from state laws.
- The "statute of limitations" (the time you have to file a claim) can be incredibly short—sometimes as little as 30 to 180 days.
- Many tribal gaming compacts require you to go through a specific administrative process before you ever see a judge.
If you have a payout dispute at a tribal casino, your first move shouldn't be calling a lawyer—it should be calling the Tribal Gaming Commission immediately while you are still on the property. If you leave without a written report, your chances of recovery drop to near zero.
The Role of Gaming Commissions
In almost every jurisdiction, the path to your money goes through a government agency, not a jury. In Nevada, it’s the Nevada Gaming Control Board (NGCB). In New Jersey, it’s the Division of Gaming Enforcement (DGE).
When a dispute happens over an amount—usually over $500—the player has the right to request an investigation.
The agent will show up. They will lock the machine. They will take the logic board (the "brain" of the slot) to a lab. They will look at the RNG (Random Number Generator) logs. If the logs show that the machine did not trigger a jackpot, the agent will issue a "deadly" letter stating the casino doesn't owe you.
You can appeal this decision, but you’re fighting the government's experts. It’s a tough room.
When You Actually HAVE a Case
It’s not all doom and gloom. There are specific times when suing a casino for not paying out actually works.
- Breach of Contract (Non-Malfunction): If the casino refuses to pay a legitimate win because they "ran out of cash" or because of a management dispute, you have a very strong case.
- Discrimination: If you can prove they are withholding funds based on race, gender, or other protected classes, you move from gaming law into civil rights law.
- False Imprisonment: If the casino detains you in "the back room" to pressure you into waiving your winnings, you might not just get your jackpot—you might get punitive damages.
- Valid Bonus Disputes: Online casinos are notorious for this. They offer a $5,000 bonus, you win, and then they say you violated "Section 14.3.2" of the terms of service. If those terms are found to be "unconscionable" or hidden, players have successfully won settlements.
Practical Steps to Take Right Now
If you are standing on a casino floor right now and they are refusing to pay you, do not lose your cool.
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Stay at the machine. Do not walk away. If you leave, they can open the machine, "fix" it, and the evidence is gone.
Take video. Record the screen, the machine number, and the surrounding area. Note the time.
Ask for the Gaming Commission. Do not just talk to the floor manager. Tell them you want to file a formal dispute with the state regulatory body. This usually changes their tone because it involves paperwork and outside eyes.
Find witnesses. Get phone numbers of the people playing next to you. They saw the screen too.
Don't sign anything. Some casinos will offer a "consolation" prize—like a free room or a smaller cash amount—if you sign a waiver. If you think the win is real, don't touch that pen.
The Reality of Online Casino Payouts
Online gambling is a wilder west. If you’re playing at an "offshore" casino (licensed in places like Curacao or Costa Rica), suing them is basically impossible. They have no physical presence in the U.S. and don't care about your local laws.
However, if you are playing at a legal, state-regulated online casino (like in PA, NJ, or MI), you have the same protections as a physical casino. You can file a complaint with the state board. Most online disputes center around "wagering requirements." You might have won with "bonus money" that requires you to bet the amount 30 times before you can withdraw. If you didn't meet that requirement, no court in the land will help you.
Final Thoughts on Your Chances
The house doesn't just win during the game; they are set up to win the legal battle afterward too. Suing a casino is expensive. Most gaming lawyers work on contingency, but they won't touch a "malfunction" case unless there’s overwhelming evidence of negligence.
If you have a legitimate win and the casino is being shady, you need a lawyer who specializes specifically in gaming law, not just a general personal injury attorney. The rules are too niche for a generalist.
Next Steps for Players:
- Check your state's Gaming Commission website for "Player Dispute" forms.
- If the amount is under $10,000, consider Small Claims Court, but check if your state allows this for gaming debts first.
- Archive all emails and chat logs if the dispute is with an online operator.
- Contact a member of the International Association of Gaming Advisors (IAGA) if the jackpot is significant enough to warrant a high-level legal fight.