Caught Stealing

And it’s all perfectly legal, because it’s all in the math.

A game with a windfall for a knowing few

Billy’s Beer and Wine sold exactly $47 worth of lottery tickets the day before Marjorie Selbee arrived, just another sleepy day for the liquor store in this tiny Western Massachusetts town. But from the moment the 70-something woman from Michigan entered the store early July 12, Billy’s wasn’t sleepy anymore.

Over the next three days, Selbee bought $307,000 worth of $2 tickets for a relatively obscure game called Cash WinFall, tying up the machine that spits out the pink tickets for hours at a time. Down the road at Jerry’s Place, a coffee shop in South Deerfield, Selbee’s husband, Gerald, was also spending $307,000 on Cash WinFall. Together, the couple bought more than 300,000 tickets for a game whose biggest prize – about $2 million – has been claimed exactly once in the game’s seven-year history.

But the Selbees, who run a gambling company called GS Investment Strategies, know a secret about the Massachusetts State Lottery: For a few days about every three months, Cash WinFall may be the most reliably lucrative lottery game in the country. Because of a quirk in the rules, when the jackpot reaches roughly $2 million and no one wins, payoffs for smaller prizes swell dramatically, which statisticians say practically assures a profit to anyone who buys at least $100,000 worth of tickets.

During these brief periods – “rolldown weeks’’ in gambling parlance – a tiny group of savvy bettors, among them highly trained computer scientists from MIT and Northeastern University, virtually take over the game. Just three groups, including the Selbees, claimed 1,105 of the 1,605 winning Cash WinFall tickets statewide after the rolldown week in May, according to lottery records. They also appear to have purchased about half the tickets, based on reports from the stores that the top gamblers frequent most.

See also:
Elderly Couple Games Lottery, Wins Millions
Elderly Couple Finds Loophole In Massachusetts Lottery
How to Win the Lottery: Couple Profited From Quirk in Massachusetts Cash WinFall Game
Beating the System: Couple Spends $600,000 to Win Lottery Millions
Talk about making your own luck! Elderly couple who spent $600,000 on lottery tickets to win millions in prizes
Massachusetts Lottery Loophole Virtually Guaranteed a Profit
Massachusetts Lottery Players Exploit Game for Profit
How three groups collected almost 70% of lottery winnings
Gamblers find loophole in Mass. lottery game
Lottery scheme appears to cause trouble for area outlets
Massachusetts restricts lottery ticket sales after couple cracks secret to winning millions
Lottery restricts high-level players
Broken Lotteries

How stupid is Massachusetts for not catching this after the first time? Limiting the amount of tickets an outlet can sell in a day now is a lot like closing the barn door after the horse is long gone.

/oh well, all good things must come to an end and the Selbees are laughing all the way to the bank

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