Court rules grandmother, 90, will receive $1.85 instead of $41M jackpot

Apr 26, 2015, 10:32 am (49 comments)

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As a 90-year-old grandmother, Pauline McKee tries to maintain a sweet disposition.

When she played a penny slot machine that told her she had won more than $41 million, the Antioch woman remained pretty calm. "That was nice," she said, recalling her reaction. "Very nice."

And when she learned on Friday that the Iowa Supreme Court ruled the casino does not have to pay her the big bucks, McKee took it stoically.

Instead, she won a mere $1.85 on the bet.

"I had my doubts from the start, because that's a lot of money for a penny machine," she said. "I was hoping to help my children out financially, but it wasn't meant to be."

The court ruled that the Isle Casino Hotel in Waterloo, Iowa, does not have to pay McKee the $41.8 million she thought she had won in 2011 while playing the "Miss Kitty" slot machine.

The machine gave her a 185-credit win and declared on the screen, "The reels have rolled your way! Bonus Award $41,797,550.16."

But the court sided with the casino and said the game's rules capped jackpots at $10,000 and didn't allow bonuses. The court said the message about the bonus award was a "gratuitous promise" the casino didn't have to honor.

McKee said she is a widow who lives on Social Security, can't see well and is a grandmother of 13. She had been at the casino during a family reunion.

McKee sued to try to collect the prize after a state investigation concluded the bonus award wasn't valid and resulted from a software error.

The ruling noted the casino paid McKee the $1.85 she was owed, and gave her a free hotel room that night.

McKee said she still plays the slots occasionally — but not at Isle Casino. "They didn't give me anything except what I had on the machine," McKee said. "If they're not going to give me any money at all, that's terrible."

The casino could have been forced into bankruptcy if it had gone the other way, said one of its attorneys, Stacey Cormican. A $41 million payout would amount to about half of the gross revenue the casino generated last year.

Cormican said the ruling will ensure fairness in Iowa's large gambling industry.

"Casinos are required to post rules and follow those rules. If either the patrons or casinos could change the rules in the middle of the game, it would be absolutely chaos," she said.

She said such computer glitches are rare.

According to the lawsuit McKee filed against the casino, here's what happened on the night of the disputed winnings:

McKee's daughter had invited her to sit down next to her to play the "Miss Kitty" slot machine.

At one point after playing 25 cents, the machine's video screen indicated her win was 185 credits, or $1.85. But it also displayed a notice of a "bonus award" of almost $41.8 million.

McKee and her daughter summoned an attendant, and an employee opened the slot machine's main door to clean the central processor. The supervisor photographed the display, and a slot technician restarted the game.

The supervisor said she had to make a few phone calls and gave McKee a $10 card to play other games while she waited. The supervisor paid McKee $18.10 she had won overall on the machine up to that point, said the casino was looking into the machine and told McKee she would get a free hotel room that night.

The next day, the casino's vice president and general manager called the situation "unusual" and compensated McKee's family for additional hotel rooms they used. McKee was told the casino had contacted the Iowa Racing and Gaming Commission and that the machine would be secured and studied.

The Gaming Commission conducted its own investigation through a testing laboratory, which concluded that the machine's hardware erroneously awarded the bonus, the suit said.

The manufacturer of the game, Aristocrat Technologies, had previously issued a bulletin that the game might show an erroneous bonus, with a recommendation to casinos to disable the bonus option.

The court ruling states that by playing, McKee entered a binding contract governed by rules and a pay table which could be displayed on the machine by pressing a button on the slot machine. A sign posted on the front of the machine also states, "Malfunction voids all pays and plays."

The rules made no mention of any bonus, so therefore the court, in an opinion written by Justice Edward Mansfield, concluded that McKee was entitled only to the $1.85. The decision upheld a lower court's granting of summary judgment to dismiss the case.

"Any message appearing on the screen indicating the patron would receive a $41 million bonus was a gratuitous promise and the casino's failure to pay it could not be challenged as a breach of contract," Mansfield wrote in a ruling that dismissed a lawsuit filed by McKee seeking the payout.

McKee's argument that the casino had an implied contract with customers to pay whatever the slot machines said "is contrary to precedent and general contract principles," he added.

The ruling followed similar decisions by other courts, such as a Mississippi Supreme Court ruling that a gambler was limited to the $8,000 maximum payout in the rules, rather than the $1 million bonus displayed on a game's screen.

In other cases, the courts have ruled in favor of gamblers if a bonus was provided for in the rules, or when a casino changed the rules after the game was played.

Chicago Tribune, Lottery Post Staff

Comments

dpoly1's avatardpoly1

BS!

No Nod

Tony Numbers's avatarTony Numbers

The casino could have been forced into bankruptcy if the ruling had gone the other way. Wow gambling is welcome unless you win, and the courts rule in the company's favor.If everyone were to boycott the casino until that woman got paid, watch how fast they cut her a check.Instead after she won they reset the machine, gave her a ten dollar gift card, a hotel room for the night. Heck she's ninety years old do we really have to pay her boss?

rcbbuckeye's avatarrcbbuckeye

It's stuff like this that keeps me from visiting casinos.

I think I'll continue to play the lottery for my entertainment.

unluckylottery

Yeah its a bummer to think you won 41 million but lets be real its a penny slot LOL.

 

The slots also all have payout scales even a progressive pot is listed so to be honest I think the casino was stand up with the way they dealt with her by giving her a free room slot play etc.. The fact she then later tried to sue is ridiculous to say the least, lets bankrupt a business and throw all the employees that work there to the wolves hell their baby's don't need to eat just so long and a 90 year old woman got her 41 million. 

 

I liked how she said i wont go back there well hun I'm sure they will miss that big bad 40 bucks a year you spend there LOL

dallascowboyfan's avatardallascowboyfan

Wow that's messed up!!!!

temptustoo's avatartemptustoo

DON'T count your chickens before they are hatched.  LOL Big Grin Angel

maringoman's avatarmaringoman

I like her attitude, she has a big heart. She must be a happy person in nature.

mypiemaster's avatarmypiemaster

Total BS.

Lynn1974

Quote: Originally posted by mypiemaster on Apr 26, 2015

Total BS.

I agree with you that's BS,it's just not fair she should get small amount,God don't like ugly

MaximumMillions

Malfunction voids all pays and plays. Simple.

pickone4me's avatarpickone4me

Quote: Originally posted by rcbbuckeye on Apr 26, 2015

It's stuff like this that keeps me from visiting casinos.

I think I'll continue to play the lottery for my entertainment.

It is entertaining for me when people throw away their money constantly to try to win a lottery game that has bad odds of winning

KY Floyd's avatarKY Floyd

Quote: Originally posted by rcbbuckeye on Apr 26, 2015

It's stuff like this that keeps me from visiting casinos.

I think I'll continue to play the lottery for my entertainment.

"It's stuff like this that keeps me from visiting casinos."

You mean stuff like being given a card that's good for some free bets and a few hotel rooms in addition to what you actually won?

music*'s avatarmusic*

Shocked Iowan's generally have the right attitude.  I do not play in casinos and I will not begin when I win Power Ball.Wink

noise-gate

First Off: I love my Grandmother. That being said- I think Mrs Mckee's Children and Grandchildren drove this lawsuit thinking they were going to get rich off " pennies". I agree with the court here. You can't get a scratcher that pays $40 mil and those puppies can run you $20.00 and up for the higher payouts... But you want to be paid $40 mil on playing pennies? Right...

JeetKuneDoLotto's avatarJeetKuneDoLotto

I would not complain.  $1.85 million is not so bad.

noise-gate

Quote: Originally posted by JeetKuneDoLotto on Apr 26, 2015

I would not complain.  $1.85 million is not so bad.

You wouldn't , but l bet those 13 grandchildren might. After all they would end up with $142,000 a piece Instead of $3 mil a person.

maringoman's avatarmaringoman

Quote: Originally posted by JeetKuneDoLotto on Apr 26, 2015

I would not complain.  $1.85 million is not so bad.

Show us where it says $1.85 million. She got $1.85 only.  Shifty

mypiemaster's avatarmypiemaster

Quote: Originally posted by noise-gate on Apr 26, 2015

You wouldn't , but l bet those 13 grandchildren might. After all they would end up with $142,000 a piece Instead of $3 mil a person.

Thumbs DownActually, those 13 grandchildren will only get 14.2 cents each.

Stack47

Quote: Originally posted by JeetKuneDoLotto on Apr 26, 2015

I would not complain.  $1.85 million is not so bad.

She got $1.85 (one dollar and eighty five cents).

McKee said she is a widow who lives on Social Security, can't see well 

I'll bet her lawyers cringed when she said that in court because their case was based on her believing she won $41 million on a penny slot machine. So far most of the comments are from members that probably never played a slot machine, don't know some machines scroll advertisements for other games, and don't know the games rules are on the front of the machine. 

McKee and her daughter summoned an attendant, and an employee opened the slot machine's main door to clean the central processor. The supervisor photographed the display, and a slot technician restarted the game.

The display probably showed she matched the symbols paying 185 penny credits. If the machine had a bonus award, she could have received that amount, but not the $41.8 million which was an obvious malfunction. But since the machine had no "bonus award", she was paid what she won. She was giving a playing voucher and a room comp until they could resolve the problem.

noise-gate

Quote: Originally posted by mypiemaster on Apr 26, 2015

Thumbs DownActually, those 13 grandchildren will only get 14.2 cents each.

Pie- I KNOW that the judgement was for $1.85. I am merely entertaining JKDL's "dream" payout here for the family. 

rcbbuckeye's avatarrcbbuckeye

Quote: Originally posted by KY Floyd on Apr 26, 2015

"It's stuff like this that keeps me from visiting casinos."

You mean stuff like being given a card that's good for some free bets and a few hotel rooms in addition to what you actually won?

Yeah... reminds me of a big news story about 10 years ago about Winstar in OK screwing a player. The casino claimed there was a malfunction. Ever since I just listen to my coworkers talk about their exploits up there.

pantherestates's avatarpantherestates

You are so right...that is messed up!wow....so you put your money in the slot,the machine states that you are a winner and now it is snatched away...not right..that would make me want t stay away from the slots forever!Argue.

noise-gate

Quote: Originally posted by pantherestates on Apr 26, 2015

You are so right...that is messed up!wow....so you put your money in the slot,the machine states that you are a winner and now it is snatched away...not right..that would make me want t stay away from the slots forever!Argue.

'"So you put your money in the slot,the machine states that you are a winner and now it is snatched away".. If you put pennies in a slot Machine, don't bank on getting a $40 mil payout. Now if she played $1.00 on the MM lottery game and won $40 Mil..... 

HaveABall's avatarHaveABall

Quote: Originally posted by KY Floyd on Apr 26, 2015

"It's stuff like this that keeps me from visiting casinos."

You mean stuff like being given a card that's good for some free bets and a few hotel rooms in addition to what you actually won?

I Agree!, KY Flood! 

The only bad taste in my mouth is from discouragement that this casino [and probably several others] decided not to turn the "bonus" feature off; once they were made aware that it was broken and displaying way inflated $$ amounts.  Also, unsavoury that this casino gave this woman and her several family members encouragement by offering them free rooms for the evening [unless they were planning to stay overnight, anyhow, that was simply wasting folk's valuable time and lasting emotions].

RickT811's avatarRickT811

she must have hired a really bad lawyer..My take on situation, is prize caps out at 10,000 , she should have at the very least end up with 10,000[ Total BS]

hera's avatarhera

This is a prime example of big business running the game . This place has no intention or interest in doing the right thing and apparently the court and justice system is in their pockets also . I have no respect for any of this . I hope this lady gets a Divine blessing of the greatest magnitude to make up for this injustice ..!!!!

Toronto

Yes, the better thing for society would be to bankrupt the casino and have 1000s of people lose their jobs so this woman can get the money, pay 40% of it to the government,  croak, then pay another 40% to the government on the remaining amount. It's the right thing to do!

Gambler4Life's avatarGambler4Life

Quote: Originally posted by rcbbuckeye on Apr 26, 2015

It's stuff like this that keeps me from visiting casinos.

I think I'll continue to play the lottery for my entertainment.

I've only played the slots once at Black Hawk. Casino gambling isn't for me. I prefer Pick 4 state lotteries. A winning ticket cannot be denied.

RJOh's avatarRJOh

Quote: Originally posted by RickT811 on Apr 26, 2015

she must have hired a really bad lawyer..My take on situation, is prize caps out at 10,000 , she should have at the very least end up with 10,000[ Total BS]

Anyone who spends a penny at a casino and dreams of winning $41M probably doesn't know a bad lawyer from a good one.  A dollar and a dream of winning a million is a stretch for lottery players but come on, a penny for $41M. Dead

Meathlab

casinos always take money but never want to MAN UP topay honest people so low down and dirty

Meathlab

did she win a dollar 1.85 cents or     1.85 million   im cumfused

RickT811's avatarRickT811

Quote: Originally posted by RJOh on Apr 26, 2015

Anyone who spends a penny at a casino and dreams of winning $41M probably doesn't know a bad lawyer from a good one.  A dollar and a dream of winning a million is a stretch for lottery players but come on, a penny for $41M. Dead

Look up Nevada Man wins largest penny jackpot 18,799,414.00  There are good things that do happen !!!! Look it up  And this lady got porked doesn,t matter how much she was playing. thats what you call profiling..

Raven62's avatarRaven62

Quote: Originally posted by HaveABall on Apr 26, 2015

I Agree!, KY Flood! 

The only bad taste in my mouth is from discouragement that this casino [and probably several others] decided not to turn the "bonus" feature off; once they were made aware that it was broken and displaying way inflated $$ amounts.  Also, unsavoury that this casino gave this woman and her several family members encouragement by offering them free rooms for the evening [unless they were planning to stay overnight, anyhow, that was simply wasting folk's valuable time and lasting emotions].

The Casino was applying Social Engineering!

Raven62's avatarRaven62

Boycott the Isle Casino Hotel in Waterloo, Iowa!

eddessaknight's avatareddessaknight

Previously on Jun 06, 2010 · ... of a couple who thought they had won $11 million from a slot machine, only to have the award reduced ... over all, but should ... a glitch

Back Check the stories, see how often this happens BEYOND COINCIDENCE ?

Eddessa_KnightSun Smiley

noise-gate

Quote: Originally posted by RickT811 on Apr 26, 2015

Look up Nevada Man wins largest penny jackpot 18,799,414.00  There are good things that do happen !!!! Look it up  And this lady got porked doesn,t matter how much she was playing. thats what you call profiling..

Comparing a Casino in Iowa to one in Nevada is not the same thing RickT811. The following is the news report on the win...

"I put in $100 and after playing $44, I saw five eagles line up and thought I had won about $3,000," he added. "Then I looked up, and the large jackpot on top of the machine had switched from $18 million to $10 million. Then I knew I had won something big."

 **There is nothing in Pauline Mckee's case that suggests that she played anything close to $100.00

The winner said he will pay off some bills and then take his wife on a long trip to Australia.

"It's exciting to make history with this penny MegaJackpot(R)," said Ed Rogich, vice president of marketing for IGT, which developed the penny Megabucks(R) game. "Penny slots are enormously popular, and this huge jackpot proves that they have a place in gaming history."

The Nevada dollar Megabucks(R) system produced a $10.8 million Megabucks(R) jackpot on Sept. 2, 2006 at Wynn Las Vegas. Both the penny and dollar Megabucks(R) progressives have top jackpots that build from a base amount of $10 million and are paid in annual installments upon verification.

 

 

***"Both the Penny and Dollar Megabucks progressives have top jackpotsthat build from a base amount of $10 million"- That's the difference Rick.

duckman's avatarduckman

In a roundabout way, this is another reason why computerized lottery drawings are not a good thing ....... unintended software or programming errors.

Stack47

Quote: Originally posted by RJOh on Apr 26, 2015

Anyone who spends a penny at a casino and dreams of winning $41M probably doesn't know a bad lawyer from a good one.  A dollar and a dream of winning a million is a stretch for lottery players but come on, a penny for $41M. Dead

Just because you, me, and Pauline McKee know if someone could win $41 million by just betting one penny, there would be a long line of people waiting to play, it doesn't mean everybody gets it.

"I had my doubts from the start, because that's a lot of money for a penny machine," she said.

It looks like the fact the Iowa Supreme Court ruled against her means nothing either.

the Iowa Supreme Court ruled the casino does not have to pay her the big bucks

JezzVim

NOT a Penny!   A penny MACHINE!   I have seen penny machines at a casino that the WAGER goes up to 5 DOLLARS a spin.   Everytime you hit the spin button you are making a 5 DOLLAR BET.

 

With that being said, I don't know how much she was playing. 

 

I have won over a thousand on a penny machine.  Yes I did!  I look for that machine every time I go.  They keep moving that lil sucker!

 

I don't see how the Court can make that decision.  Oh, job creators!!   The casino is a job creator and they can do what they want.  Cheat a old lady out of her winnings.   

I wonder how many millions that was paid out to have that ruling come down against that old lady???  Mmmmm....????

TheGameGrl's avatarTheGameGrl

Quote: Originally posted by JezzVim on Apr 27, 2015

NOT a Penny!   A penny MACHINE!   I have seen penny machines at a casino that the WAGER goes up to 5 DOLLARS a spin.   Everytime you hit the spin button you are making a 5 DOLLAR BET.

 

With that being said, I don't know how much she was playing. 

 

I have won over a thousand on a penny machine.  Yes I did!  I look for that machine every time I go.  They keep moving that lil sucker!

 

I don't see how the Court can make that decision.  Oh, job creators!!   The casino is a job creator and they can do what they want.  Cheat a old lady out of her winnings.   

I wonder how many millions that was paid out to have that ruling come down against that old lady???  Mmmmm....????

Basically an error happened, it was brought to the casinos attention and they addressed it .

Wonder if you ever disputed  a utility bill due to its gross exaggeration? Its a software glitch.  Same principle.

RickT811's avatarRickT811

hey noisy you ever been in a casino??? some of your biggest jackpots in[ any] casino are on penny machines..and it doesn,t matter if your in vegas or not, or how much your playing.> The point here is she should have got paid more than a  $1.85..because of a machine that failed.. P.S they call them progressive jackpots.. noisy your GENIUS is showing ..

noise-gate

Quote: Originally posted by RickT811 on Apr 27, 2015

hey noisy you ever been in a casino??? some of your biggest jackpots in[ any] casino are on penny machines..and it doesn,t matter if your in vegas or not, or how much your playing.> The point here is she should have got paid more than a  $1.85..because of a machine that failed.. P.S they call them progressive jackpots.. noisy your GENIUS is showing ..

Two courts do not agree with your line of thinking despite what you may say Rick.You not one of the Grandchildren..are you?

cbr$'s avatarcbr$

The manufacturer of the game, had previously issued a bulletin that the game might show an erroneous bonus, with a recommendation  to the casino's to disable the bonus option. I call that advance warning, they knew and did nothing. They such have disable the bonus option immediately on notification before offering it for uses for the public. Instead of putting people & the casino's through all the drama. So this means lady justice is truly blind not just blindfold. Nothing in this article even suggest that the casino,s have been tell by the  justice department to turn off any option on any game that go over the legal limit. They couldn't pay it. IT misleading & false advertisement. To continue to offer it without fix it was be considered premeditated, white collar crime. They knew, the judge knew, the casino,s knew, only one left in the dark are the player's. Machines "that said bonus on them, people expect to receive them. They play them just because of the bonus feature. Otherwise they pick another machine. Who ever judged this case just safe the casino's bacon.This judge apparently hasn't read the slot machines. Win are void if machine malfunctioning. I have yet to see, when I'm reading a bonus slot machine, this is a " gratuitous promise" it not on the machine. I'm play for the money, not your gratuitous. If you know your Jackpot are capped at $10,000. Why use or offer a slot machine to the plainly states it pays more  & continue to lying to people to lure them in.  People are expecting to get something you can't produce. I feel the same way about the Mississippi gambler's case. They had a $8,000, payout limit, period. Not the million bonus. Again the player's in the dark. In my opinion , knowing that the casino's are a business. I believe it such be in big bold print on the walls of a casino's large print. What the real Jackpot limit is legally, the exact dollar amount. So people aren't mislead to believe it could higher on a bonus machine. You're taking away the player's freedom of choosing a better selection of machines or choosing another establishment altogether. Gambler's aren't imbecile, we're adult out for a evening of fun. In your establishment. We don't need patronizing. Having a more honest approach could be appreciated. The laws is failing the people, the public totally. They already have laws on the books to limit and cap Jackpot's for these establishments.  Way are you  not protecting the public as well as the casino's? Better yet, Where is the Gaming Commission. Way are they collecting a pay check if they're not do the job. Check these casino's warn them or remind them, you can't offer this type of game to the public because it go over the legal limit in this area. They know the rules. I guess that could been to ethical. I'm looking at a lot of pathetic examples of ethics, dodging the bullet not really addressing the real issues here. The issue stop this from happening over & over again. 

Teddi's avatarTeddi

Is there a reason they chose not to disable the bonus feature after being told of the issue? 

I don't think grandma should get $41 million after she herself stated she figured something was wrong with the amount, but the casino should have some culpability here since they chose to keep defective machines on the floor.

If the payout amount is capped at $10,000 then paying her that amount would have shown some decency on their part and it wouldn't have bankrupted them. Now they've attracted bad publicity in which they will lose business and patrons over this. Not smart. Not smart at all.

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