A digital loophole inside Caesars Sportsbook’s system allowed one Michigan bettor to fund their account with over $2.1 million in nonexistent money, unleashing a flood of wagers that has now cost the operator a $100,000 regulatory fine.
In what regulators are calling a serious system oversight, Jeffrey Saco, a resident of Southfield, Michigan, placed nearly 10,000 bets over a two-week span in April 2023, using what the Michigan Gaming Control Board (MGCB) described as “fictitious” deposits. These phantom funds led to $88 million in wagers and resulted in $600,000 withdrawn before Caesars identified the anomaly.
Unsecured Application Allowed Unauthorized Deposits
According to the MGCB, the issue stemmed from a flaw in Caesars’ systems application, which Saco manipulated 116 times to simulate deposits without using real money or any approved payment method. The state agency issued a Notice of Opportunity to Show Compliance to Caesars on July 14, 2025, identifying several violations under Michigan’s internet gaming rules.
Caesars accepted responsibility and signed an Acknowledgement of Violation on July 28, agreeing to pay a $100,000 fine. The agreement was finalized on August 11, and officially adopted by the MGCB on September 9.
Massive Wagering Spree Followed by Sudden Exit
Using just this technical flaw, Saco averaged 26 wagers per hour for over 16 consecutive days. At the end of this aggressive betting spree, he transferred over $521,000 into his personal bank account and abruptly stopped using the Caesars platform.
This activity prompted Caesars to report the breach voluntarily, triggering a formal investigation by the MGCB. The operator also collaborated with Michigan law enforcement in pursuing a criminal case against Saco and worked alongside its third-party PAM provider to fix the security hole that made the incident possible.
Criminal Charges and Restitution
The fallout didn’t stop at a regulatory fine. Saco faced eight felony charges following a joint probe by the MGCB and the Michigan Attorney General’s office. These included:
- One count of Larceny by Conversion
- Three counts of Felony Gambling Violations
- Four counts of Using a Computer to Commit a Crime
He was arrested on September 4, 2024, arraigned the next day in Traverse City, and released on a $500,000 personal bond. After reaching a plea agreement, Saco was sentenced in April 2025 to three months in jail and three years of probation.
As part of the restitution order, he paid $25,000 upfront to Caesars and will continue paying $2,500 monthly for the duration of his probation.
Caesars Moves to Contain the Damage
At a public meeting on September 9, Lisa Rankin, Caesars’ VP of Compliance & Licensing, confirmed the company’s role in discovering and reporting the breach. She emphasized that the operator had taken corrective action and that the vulnerability had been addressed in collaboration with its tech partners..
The company currently operates under the William Hill license in Michigan. After acquiring William Hill in 2021, Caesars sold its non-U.S. assets to 888 Holdings in 2022, retaining only the U.S. operations.
Source:
“Michigan regulator fines Caesars $100K for allowing $2.1M in ghost deposits”, sbcamericas.com, Sep 19, 2025.
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