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If your balance would have been zero if not for the mis-graded wager, then they are following normal rules that all action that comes from the incorrectly credited funds should be void.
The legal ideology behind this is that licensed books are not allowed to extend credit for sports wagering, and therefore if you have lost that $2800 then they cannot make you pay it back or call it a debt.
Your best strategy is to write to both the book and the regulator (mail@wvlottery.com) and plead your case on the basis of fairness, saying that you "made these bets in good faith" and if not for the MGM error would have deposited more money to make those same bets anyway.
You should not call them criminal or tell them they are wrong as that will only guarantee they will dig their heels in so you cannot say "look, they paid me, therefore admitting they are wrong". Plus they are not wrong.