Caesars Sportsbook has agreed to pay a $100,000 fine to the Michigan Gaming Control Board (MGCB) after a malfunction in its system allowed a bettor to deposit over $2.1 million without using actual funds—leading to a staggering $88 million wagered and $600,000 withdrawn before the issue was discovered.
The violation stems from a technological error that enabled Michigan resident Jeffrey Saco to submit 116 fictitious deposits into his Caesars Sportsbook account. These deposits, according to the MGCB, were made with “no physical cash deposit or other authorized method of account funding.”
Exploiting the Glitch: 10,000 Bets in 16 Days
The incident, which unfolded in April 2023, involved Saco placing nearly 10,000 wagers in just over two weeks—averaging around 26 bets per hour. Through this scheme, he managed to transfer more than $521,000 into his personal bank account before ceasing his activity on the platform.
While Caesars eventually self-reported the breach, the damage had already been done. The MGCB launched an investigation and, on July 14, 2025, issued a Notice of Opportunity to Show Compliance (NOSC) to Caesars, citing multiple violations of Michigan’s internet gaming regulations.
On July 28, Caesars signed an Acknowledgement of Violation (AOV) and accepted the $100,000 penalty. The AOV was finalized by the MGCB's executive director Henry Williams on August 11, with the board officially adopting the terms on September 9.
Operator Response and Corrective Measures
During the September MGCB meeting, Lisa Rankin, Vice President of Compliance & Licensing for Caesars, acknowledged the error and emphasized the operator's cooperation with state regulators. She stated that Caesars not only reported the incident promptly but also worked closely with Michigan law enforcement to pursue criminal charges against Saco. In addition, Caesars collaborated with its third-party player account management (PAM) provider to fix the vulnerability and prevent future occurrences.
Criminal Case and Restitution
As a result of the investigation, Saco faced eight felony charges, including:
- Larceny by Conversion
- Three counts of Gambling Activity–Felony Violation
- Four counts of Using a Computer to Commit a Crime
According to the MGCB, “The Michigan Gaming Control Board takes the enforcement of gambling laws and regulations very seriously in this state.” Executive Director Henry Williams added, “It is important to remember that this individual who is facing charges has the right to due process and is presumed innocent until proven guilty.”
Saco was arrested on September 4, 2024, by Lathrup Village Police, arraigned in Traverse City, and released on a $500,000 personal bond. In April 2025, following a plea agreement, he was sentenced to three months in jail and three years of probation.
As part of the resolution, Saco paid $25,000 in restitution upfront and agreed to $2,500 monthly payments to Caesars over the course of his probation.
Caesars’ Licensing and Ownership Structure
Caesars operates its online sportsbook in Michigan under the William Hill brand, which it acquired in 2021. While Caesars retained William Hill’s U.S. assets, it later sold the company’s international operations to 888 Holdings in 2022.
Source:
“Michigan regulator fines Caesars $100K for allowing $2.1M in ghost deposits”, sbcamericas.com, Sep 19, 2025.
