Michigan's loss to Oregon has saved a Las Vegas casino owner $1 million.
Golden Nugget owner Tilman Fertitta personally approved a $12,500 bet on Michigan at 80-to-1 odds from Derek Stevens, who owns The D casino.
Oregon beat Michigan 69-68 to move on to the Elite Eight.
The payout if Michigan had won the NCAA mens' basketball tournament would have been 10 times larger than any the Nugget's sports book has ever made.
Stevens, a Michigan native and University of Michigan alumnus, bet $11,000 each on all 32 first-round games, but got off to a rocky start. He was down $109,000 after the opening round.
Fertitta also owns Atlantic City's Golden Nugget casino, which he bought from President Donald Trump's former company, and Landry's Inc., one of the nation's largest restaurant companies.