Repeat after me: Thou shalt not mess with the Michigan Gaming Control Board.
The MGCB, as has been well-documented on Action Network’s sister site, MI Bets, takes its task of busting up illegal gambling operations so seriously that it has occasionally risen to comical heights, like when the agency made a big show of destroying several of the illegal gambling machines it had seized in a Detroit junkyard.
This week, however, the MGCB proved itself capable of collaring scofflaws on a more sophisticated level than shutting down an illegal bank of slot machines squirreled inside a gas station or arcade, as eight felony charges have now been filed against a Michigan man for “exploiting a system vulnerability” in Caesars Sportsbook to essentially steal $521,000.
When reached for comment by Action Network, Caesars declined to say what this system vulnerability was. But here’s what’s known from an MGCB press release: In April 2023, Jeffrey Saco allegedly made more than $2 million in fictitious deposits into his Caesars sportsbook account by exploiting the aforementioned system vulnerability. He placed nearly 10,000 bets within 16 days, wagering more than $88 million. He then transferred more than $521,000 into his personal bank account before halting activity on Caesars' platform.
Saco’s alleged activity came to light after Caesars notified the MGCB about an account holder who was engaging in fraudulent activity on his mobile betting account. A joint investigation with the Michigan Attorney General’s Office was then launched.
“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,” MGCB Executive Director Henry Williams said in the press release. “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.”
“My office not only works alongside the Michigan Gaming Control Board to enforce our state laws prohibiting illegal gaming operations, we also partner to prosecute criminals taking advantage of legitimate gaming venues,” added Michigan Attorney General Dana Nessel. “I appreciate our partnership with the Michigan Gaming Control Board and share their dedication to enforcing our state’s gaming laws.”
Charges Detailed After September Arrest
Saco was arrested in the Detroit suburb of Lathrup Village on Sept. 4, arraigned the next day and released on a $500,000 personal bond. A preliminary examination hearing has been scheduled for Friday, Oct. 4.
The eight felony charges Saco is facing are as follows, per the MGCB’s release:
- Larceny by Conversion: one count. Per the Michigan Penal Code Section 362 (MCL 750.362), larceny by conversion occurs when an individual embezzles or unlawfully converts money, goods, or other property that has been entrusted to them. The penalties for this offense depend on the value of the stolen property. For amounts exceeding $20,000 or in cases involving prior larceny convictions, felony charges can lead to a prison sentence of up to 10 years, along with a fine of up to $15,000 or three times the value of the stolen property—whichever is greater.
- Gambling Activity-Felony Violation: three counts. Under the Michigan Gaming Control and Revenue Act, 432.218, each felony count is punishable by imprisonment for not more than 10 years or a fine of not more than $100,000.00, or both, and the person shall be barred from receiving or maintaining a license for conducting a gambling operation where wagering is used or to be used without a license issued by the Board.
- Using a Computer to Commit a Crime: four counts. Under MCL 752.796, each felony count for using a computer to commit a crime is punishable by a maximum term of imprisonment of 10-20 years and/or a $10,000 fine.
