Earlier this month, a Michigan man was arrested and charged with exploiting a glitch in the Caesars Sportsbook app to take out $520,000.
A press release from gambling regulator the Michigan Gaming Control Board (MGCB) revealed details of the events and the subsequent efforts of law enforcement.
Jeffrey Saco, 38, of Southfield, Michigan, is accused of making $2 million in fictitious deposits to his Caesars Sportsbook account. He then went on a 16-day betting spree in which he wagered a total of $88 million, mostly derived from winnings on his fictitious deposits.
He then withdrew $521,000 and stopped betting. Police say he used his own personal bank account to complete the withdrawal.
The alleged fraudulent betting spree took place in April 2023. However, Saco was only arrested this September 4. If convicted on all three charges, he could face up to 40 years in prison.
“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,” said MGCB Executive Director Henry Williams.
“It is important to remember that this individual who is facing charges has the right to due process and is presumed innocent until proven guilty. With that being said, we will now let the judicial system determine the truth in this matter and the veracity of the charges.”
The Alleged Gambling
The charges against Saco related to 16 days of gambling activity in April 2023. Police believe this is when Saco deposited the fraudulent $2 million in cash via the Caesars Sportsbook app.
He is charged with using that fictitious deposit to place 10,000 bets over the two-week period, totaling $88 million. He then withdrew $521,000 into his own personal bank account and ceased his betting, the MGCB says.
The investigation that led to Saco’s arrest spanned over a year. The investigative team included MGCB officers, the Michigan Department of the Attorney General, and senior employees from Caesars Sportsbook.
Las Vegas-based Caesars noted the gambling spree as suspicious on the day of the withdrawal before notifying the MGCB.
The Consequences
Saco faces eight felony counts across three different charges. That is, one count of larceny by conversion, three counts of Gambling Activity Felony Violations, and four counts of Using a Computer to Commit a Crime.
He could face a fine of $1.6 million and up to 40 years in prison. The bulk of that fine is the larceny by conversion charge, for which he can be fined up to three times the value of the stolen property.
Saco was arrested in the Detroit suburb of Lathrup Village on September 4. He was charged at the 86th District Court in Traverse City before posting $500,000 bail. He is scheduled for a Friday, October 4 preliminary hearing.
In another recent case of a gambling exploit in which many more people were involved, a glitch in the payout system at Star Casino in Sydney led several dozen gamblers to exploit it for more than $2 million. The casino is now chasing it back, with around a quarter of those players found.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
