Michigan Senator Pushes Legislation to Legalize Social Betting Contests

Michigan lawmakers are considering changing the state's gaming laws to legalize small-scale betting pools.

Sen. Veronica Klinefelt has presented Senate Bill 511 (SB 511), which seeks to update state law to allow social betting contests such as March Madness and Super Bowl pools.

The proposal authorizes bettors to participate in informal Michigan sports betting, provided they are part of an established social group. Sen. Klinefelt told the Senate Committee on Regulatory Affairs that the measure is designed to reflect everyday behavior, such as friends betting a small amount on a game.

Under SB 511, contests would only be allowed to have up to 100 participants, and individual bets would be capped at $25. All prize money must come directly from the wagers, and winnings can only be distributed among participants. 

While able to host the competitions, businesses would not be allowed to promote these contests, preventing them from using wagering to attract customers. The legislation also specifies that wagers cannot occur at licensed gambling establishments, bars, or entertainment venues.

The bill proposes increasing the fines for violating this section of the law from $1,000 to $5,000. While it has bipartisan backing from lawmakers, including Sens. Sue Shink, Jonathan Lindsey, and Joseph Bellino, opposition has come from Michigan’s casinos and several tribes. 

Critics argue the measure could violate the state constitution’s gambling provisions. The Committee on Regulatory Affairs is reviewing the bill, with potential amendments including raising the maximum individual wager to $100.

Caesars fined in Michigan

While lawmakers weigh SB 511, Michigan’s gaming regulator addressed a separate gambling issue involving Caesars Sportsbook. The Michigan Gaming Control Board (MGCB) fined the operator $100,000 after determining a customer exploited a system error to deposit more than $2.1 million without transferring actual funds.

According to regulatory documents, player Jeffrey Saco used the flaw to make 116 fictitious deposits, enabling him to wager over $88 million and withdraw nearly $600,000 in April 2023 before ceasing play. The MGCB said Caesars self-reported the issue, which resulted in almost 10,000 bets within 16 days, averaging 26 wagers per hour.

The Michigan sports betting app acknowledged the violation in July and agreed to the settlement. MGCB Executive Director Henry Williams signed the Acknowledgement of Violation in August, and the terms were officially adopted in early September. Caesars said it worked with its third-party account management provider to prevent a recurrence and cooperated with law enforcement in pursuing charges against Saco.

Saco was charged with eight felonies and sentenced in April 2025 to three months in jail and three years of probation under a plea agreement. He was ordered to repay Caesars, providing $25,000 upfront and $2,500 monthly during probation. 

Caesars confirmed it recovered part of the losses through restitution alongside the regulatory settlement.