“Can you help me take down the Texas lottery?”
That’s what a London banker-turned-bookmaker asked “acquaintances” in 2023, reports the Wall Street Journal. The plan was to buy “nearly every possible number in a coming drawing” — purchasing $1 tickets for 25.8 million possible combinations, since “The jackpot was heading to $95 million. If nobody else also picked the winning numbers, the profit would be nearly $60 million.”
Marantelli flew to the U.S. with a few trusted lieutenants. They set up shop in a defunct dentist’s office, a warehouse and two other spots in Texas. The crew worked out a way to get official ticket-printing terminals. Trucks hauled in dozens of them and reams of paper… [Then Texas announced no winner in an earlier lottery, rolling its jackpot into another drawing three days later.] The machines — manned by a disparate bunch of associates and some of their children — screeched away nearly around the clock, spitting out 100 or more tickets every second. Texas politicians later likened the operation to a sweatshop.
Trying to pull off the gambit required deep pockets and a knack for staying under the radar — both hallmarks of the secretive Tasmanian gambler who bankrolled the operation. Born Zeljko Ranogajec, he was nicknamed “the Joker” for his ability to pull off capers at far-flung casinos and racetracks. Adding to his mystique, he changed his name to John Wilson several decades ago. Among some associates, though, he still goes by Zeljko, or Z. Over the years, Ranogajec and his partners have won hundreds of millions of dollars by applying Wall Street-style analytics to betting opportunities around the world. Like card counters at a blackjack table, they use data and math to hunt for situations ripe for flipping the house edge in their favor. Then they throw piles of money at it, betting an estimated $10 billion annually.
The Texas lottery play, one of their most ambitious operations ever, paid off spectacularly with a $57.8 million jackpot win. That, in turn, spilled their activities into public view and sparked a Texas-size uproar about whether other lotto players — and indeed the entire state — had been hoodwinked. Early this month, the state’s lieutenant governor, Dan Patrick, called the crew’s win “the biggest theft from the people of Texas in the history of Texas.” In response to written questions addressed to Marantelli and Ranogajec, Glenn Gelband, a New Jersey lawyer who represents the limited partnership that claimed the Texas prize, said “all applicable laws, rules and regulations were followed….”
Lottery officials and state lawmakers have taken steps to prevent a repeat.
The article also looks at a group of Princeton University graduates calling themselves Black Swan Capital that’s “won millions in recent years” by targetting state lottery drawings with unusually favorable odds.
“State lottery directors say they are seeing more organized efforts to buy lottery tickets in bulk,” according to the article, “but that the groups are largely operating legally and transparently…”
Read more of this story at Slashdot.
