A criminal case involving problem gambling and millions of dollars in “fictitious” sports betting deposits has concluded.
Jeffrey Saco, a 38-year-old Michigan man, pleaded guilty to one count of engaging in illegal gambling activities, a felony, authorities in Michigan announced.
According to the state, Saco admitted to exploiting “a system vulnerability” to make over $2 million in fraudulent deposits into his Caesars sportsbook account. The deposits all occurred in April 2023.
Over about two weeks of gambling, Saco placed nearly 10,000 bets and wagered more than $88 million, transferring more than $500,000 into his personal account before ceasing gambling on the platform.
He was in the hole about $1.5 million from his gambling, but the money lost wasn’t his.
According to the MGCB, Caesars “notified the MGCB about an account holder who was allegedly engaging in fraudulent activities with his mobile betting account.”
Plea Deal
As part of his plea agreement, Saco made an initial $25,000 payment through his attorney, with the funds to be turned over to Caesars via the court.
He has also made the first of ongoing monthly restitution payments of $2,500.
Saco received 36 months of probation and must continue making $2,500 monthly payments to Caesars throughout the probation. At the end of his probation, the outstanding balance will be converted into a debt.
It’s unclear how much in total he owes to the sportsbook operator.
Saco was also sentenced to 90 days in jail, with two days served. The remaining jail time is pending compliance with the terms of his probation.
He is also attending Gamblers Anonymous as part of his “rehabilitation.”
The plea was made after Saco faced eight felony charges.
Big Picture for Problem Gambling
The gambling industry generates a significant majority of its revenue from people who aren’t treating gambling as entertainment. In other words, people having problems with their play.
The Saco case in Michigan is an example.
According to MGCB figures, Caesars reported $840,000 in sports betting revenue for April 2023. Saco’s losses were nearly double what was won from all other Michigan sports gamblers on the Caesars platform during the month.
The federal SAFE Bet Act seeks to establish nationwide deposit and wagering limits so a situation like Saco’s case is impossible or far less likely at a state-sanctioned sportsbook.
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