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Read Full BioThe Michigan Gaming Control Board (MGCB) has fined American Wagering, the parent group of Caesars, $100,000 for allowing a user to make “ghost deposits” of $2.1 million.
Jeffrey Saco, 38, made the fictitious deposits into his Caesars Sportsbook account by “exploiting a system vulnerability” in April 2023.
Caesars agreed to pay the fine earlier this year, and the order was officially filed on September 9. In the document released by SBC Americas, the MGCB says that Caesars “allowed a patron to access the unsecured systems application and make 116 deposits with no physical cash deposit or other authorized method of account funding.”
User Placed More Than 10,000 Bets Using Ghost Funds
Saco discovered a system error that enabled him to verify deposits without actually using any of his own funds.
After depositing $2.1 million, he placed nearly 10,000 bets and wagered more than $88 million. The bets were placed over a 16-day period, resulting in an average rate of around 26 bets an hour.
Subsequently, he transferred over $521,000 into his personal account before ceasing activity on the platform. However, the suspicious activity was noticed and investigated by Caesars.
Caesars notified the MGCB when it became aware of the issue. Caesars VP of Compliance & Licensing Lisa Rankin said that the company not only investigated and self-reported the issue but also worked with Michigan law enforcement in efforts to prosecute Saco criminally.
Later in 2023, the company was also the target of a system hack that exposed its data. Caesars paid $30 million in a ransom demand after a hacking group gained access to its system in a social engineering attack.
Saco Jailed Earlier This Year
Earlier this year, Saco was sentenced to three months in prison for the scam and ordered to repay the money to Caesars. He made an initial payment of $25,000 through his attorney and agreed to monthly restitution payments of $2,500.
Rankin added that Caesars also worked with its third-party player account management (PAM) provider to ensure the error would be a one-time occurrence.
MGCB Executive Director Henry Williams said, “The Michigan Gaming Control Board takes the enforcement of gambling laws and regulations very seriously in this state.
“To that end, I appreciate the collaborative partnership the agency has with the Michigan Attorney General’s Office and industry personnel at Caesars Entertainment—who initially notified us about this situation.”
Michigan Gambler Sues BetMGM After Game Malfunction
Saco may have thought he had hit the jackpot after being able to trick the Caesars system. However, he was held accountable after purposefully hacking it.
Another Michigan gambler was on the end of a system malfunction at BetMGM, winning $3.2 million. In March 2021, Jacqueline Davis allegedly won around $3.2 million in six days playing the “Luck o’ the Roulette” game at BetMGM Online Casino.
The operator found that a game malfunction led to the payouts and suspended her account, freezing the winnings. Davis responded by filing a lawsuit. In July, the Michigan Supreme Court ruled that she could proceed with the case, which remains ongoing.
