Reported first by the New Jersey Law Journal, the Borgata is suing Ivey and a female companion, Cheng Yin Sun, along with card manufacturer Gemaco, Inc.
The lawsuit claims Ivey exploited a flaw in the design of the card deck to know which cards were coming over the high-stakes sessions.
Sun accompanied Ivey to the tables, the lawsuit says, and communicated how the deck should be shuffled and cards arranged to the Mandarin-speaking dealer, which Ivey requested.
An automatic card shuffler was also requested so the cards wouldn't be turned as they would be on a dealer shuffle.
Arranging a starting stake of $1m-$3m with the casino, the suit says, Ivey cashed out as much as $4m+ in a session which he had wired to a bank account in Mexico.
Ivey in Similar Lawsuit with London Casino
Ivey is currently involved in a similar lawsuit over edge sorting with Crockfords Casino in London - this time as the plaintiff rather than the defendant.
Ivey won close to $12m at the Punto Banco tables over two nights in August 2012 using the same technique, which he admitted to using in the lawsuit.
The difference in that case is the casino refused to pay out the winnings, forcing Ivey to sue.
Ivey claimed in that case that while he's "an advantage player" and did use the technique the onus is still on the casino to protect its games and honor the winnings.
The case is still pending.