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The Michigan Gaming Control Board has ordered Caesars Sportsbook, operating as American Wagering, Inc. under the William Hill brand, to pay a $100,000 fine after a customer exploited a flaw in its account funding system, leading to millions of dollars in wagers.
According to the MGCB’s order, the incident traces back to April 2023 when a customer discovered a weakness in a system designed to update patron accounts after cash deposits.
The flaw allowed the customer to create the appearance of account funding without depositing actual money into Caesars Sportsbook.
Nearly $600K withdrawn
The Michigan Department of Attorney General charged a Southfield man with eight felony counts involving fraudulent online activity in September 2024.
Over time, the patron made 116 false deposits totaling $2.15 million. Using those phantom funds, the man placed more than $88 million in wagers and successfully withdrew $591,469.65 from the sportsbook.
The MGCB concluded that Caesars violated multiple provisions of Michigan’s Lawful Internet Gaming Act and Lawful Sports Betting Act, which require operators to maintain secure technical systems, use only approved funding methods, and ensure accurate account balances.
Regulators stressed that integrity of account funding is a cornerstone of lawful wagering.
Caesars takes responsibility
In July, the MGCB issued a Notice of Opportunity to Show Compliance. Caesars, through its William Hill subsidiary, opted not to contest the allegations.
Instead, it entered into an Acknowledgment of Violation (AOV) on July 28, signed by its vice president of compliance and licensing. The MGCB’s executive director signed the agreement on Aug. 11, clearing the way for a formal order.
The AOV requires Caesars to pay the $100,000 fine as a final resolution of the matter and to strengthen its internal controls to prevent similar incidents. In adopting the settlement, the MGCB agreed that no further disciplinary proceedings would follow so long as the terms are met.
The fine underscores the high stakes for sports betting operators in one of the nation’s most tightly regulated markets. The MGCB has consistently taken a hard line on compliance failures, viewing them as potential threats to the integrity of legal wagering in the state.
For Caesars, the case marks both a financial penalty and a reputational reminder that even small system flaws can create major regulatory consequences.
