Caesars Penalized for Massive Deposit Error in Michigan

In a recent upshot from the world of online gambling, Caesars Sportsbook has found itself embroiled in an expensive and humiliating technological mishap. This unsettling episode revolved around a $2.1 million phantom deposit scandal that surfaced in Michigan, leading to significant consequences for the operator. The incident came to light when the Michigan Gaming Control Board (MGCB) imposed a punitive fine of $100,000 on Caesars Sportsbook. All because an unsuspected glitch allowed a bettor to manipulate the system to his favor. The bettor, identified as Jeffrey Saco, managed to deposit more than $2.1 million into his account without using actual funds, wagering an enormous $88 million in total, and withdrawing $600,000 before the system fault was uncovered. This technical malfunction gave Saco the opportunity to create a slew of fabricated deposits that went unchecked.

An Exploit Uncovered

Diving deeper into the timeline of this scandal, the breach was first identified in April 2023. Within a mere span of sixteen days, Saco exploited the loophole by placing nearly 10,000 bets, which averages to approximately 26 wagers every hour. Amid his strategic maneuvering, he successfully transferred over $521,000 directly into his personal bank account. While Caesars was eventually able to detect and report this issue, the ramifications were already spiraling out of control by then. Consequently, the MGCB launched an investigation, and by mid-2025, served Caesars with a Notice of Opportunity to Show Compliance, reflecting multiple breaches of Michigan's internet gaming regulations. Subsequently, by the end of July, Caesars acknowledged the situation formally by entering into an Acknowledgment of Violation and agreeing to the imposed penalty. This agreement, endorsed by the MGCB's Executive Director, Henry Williams, was approved in a meeting held in September.

Legal Proceedings and Responses

In an effort to address and rectify the consequences of this oversight, Caesars adopted a cooperative stance with the regulators. As explained by Lisa Rankin, Caesars' Vice President of Compliance & Licensing, the operator not only adhered to all legal formalities but also collaborated with Michigan law enforcement to bring criminal charges against Saco. At the core of their preventive strategies was working alongside their third-party player account management provider to seal any potential vulnerabilities. As the criminal investigation unfurled, Saco faced eight felonies, including larceny by conversion, three counts of gambling activity felony violation, and four counts of using a computer to commit a crime. Emphasizing the severity and clarity on the rule enforcement, the MGCB underscored their dedication to maintaining the integrity of gambling laws. Executive Director Williams added that while Saco was arrested and had criminal proceedings pending, he is still entitled to due process and presumption of innocence until proven guilty. Following his arrest, Saco was released on bond and eventually faced sentencing that included three months’ incarceration and three years of probation. In terms of restitution, Saco agreed to make up-front payments and continued to pay Caesars throughout his probation phase. Source: “Michigan regulator fines Caesars $100K for allowing $2.1M in ghost deposits”, sbcamericas.com, Sep 19, 2025. By GamesAndCasino