Caesars Entertainment Fined in Michigan for Deposit Error

Michigan's gaming regulator fined one of the best sports betting sites $100,000 after a bettor exploited a system failure to deposit more than $2.1 million without providing funds.

The Michigan Gaming Control Board (MGCB), which oversees the legal Michigan sports betting market, said the case stemmed from 116 fictitious deposits by state resident Jeffrey Saco to Caesars Sportsbook, who then wagered more than $88 million through nearly 10,000 bets in just 16 days.

The regulator said Saco withdrew almost $600,000 before ceasing activity with Caesars in April 2023. He allegedly transferred $521,000 of that money into his personal bank account. 

In July of last year, MGCB Executive Director Henry Williams issued a Notice of Opportunity to Show Compliance. Caesars acknowledged responsibility and agreed to settle on July 28. The Michigan sports betting app operator stressed that the underlying failure was technological, not intentional.

Caesars VP of Compliance & Licensing Lisa Rankin told the MGCB at the time that the company not only investigated the issue, but it also worked with Michigan law enforcement to develop the case to prosecute Saco.

Criminal charges were filed against Saco, who faced eight felonies. This past April, he was sentenced to three months in jail and three years of probation after a plea deal. He also agreed to pay Caesars restitution, including an upfront payment of $25,000 and monthly installments of $2,500 for the duration of his probation.

Other operators fines

In a separate regulatory action, DraftKings agreed in July to return more than $3 million to over 7,000 Connecticut customers following a settlement with the state's Department of Consumer Protection.

The Gaming Division determined that several deposit bonus campaigns, conducted between October 2021 and early 2023, failed to meet advertising standards. Regulators said key conditions, such as wagering requirements, were omitted from promotional materials. 

DraftKings denied wrongdoing but agreed to refund just over $3 million to 7,075 affected patrons and pay $50,000 into the state's consumer enforcement fund.

Under the settlement, users with active accounts either received funds within 60 days or were mailed a check. Customers were also to be notified by email and were given one year to redeem payments. Any amount not claimed will be transferred to the state's unclaimed property system. 

DraftKings also accepted new obligations, including clearer disclosures for deposit bonuses and "free" or "risk-free" wagers. It must highlight its Casino Education Hub for new users, conduct annual compliance training for Connecticut-facing staff, and submit yearly reports to regulators for a period of five years.

A DraftKings spokesperson said the company remains committed to meeting regulatory requirements and strengthening its relationship with Connecticut authorities.