Wednesday, August 1, 2012

And Now For Something Completely Different: How An MIT Senior, A Michigan Retiree, And Two Biomedical Researchers Beat The Massachusetts Lottery



State lotteries catch a lot of flak, labeled by turns a tax on the poor, a tax on the stupid and a fiscal cop-out that ignores local governments' root budget problems.  But every so often, someone figures out a way to beat the game — and the state ends up benefiting anyway.

On Friday, the Massachusetts Inspector General issued a report detailing how not one but three "syndicates" cracked the state's Cash WinFall lottery game.  The break was first reported last fall by the Boston Globe.

Cash WinFall involved buying a $2 ticket and picking six numbers between 1 and 46.  Unlike most other lotteries, the jackpot was capped at $2 million. If that figure was reached and no one matched all six numbers, the money in the jackpot was distributed among the lower tier prizes for that drawing — otherwise known as a "roll-down." The odds of hitting the jackpot were one in 9,366,819.

But if you were smart, patient and had the means — as the three betting groups were — there was a loophole in the system big enough to drive a truck through.



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