For years, an American couple won millions from the lottery thanks to a loophole in the rules that mathematically guaranteed a return if they purchased many tickets.
Although most lottery winners rely solely on luck on their side, some resourceful individuals are able to legally exploit lottery systems to make huge winnings.
Among the most fascinating stories is that of Jerry e Marge Selbeea retired Michigan couple who discovered a lucrative loophole in lottery math and won $26 million.
Jerry Selbee, a retiree with a mathematics degree, discovered an anomaly in a Michigan lottery game called Winfall. Unlike normal lotteries where jackpots are accumulated until claimed, Winfall had a different mechanism: if the jackpot exceeded $5 million with no winner, the prize money would be transferred to lower-tier winners.
In a calculation that took just three minutes, Jerry discovered that by purchasing large quantities of tickets, he could statistically guarantee a profit. “If I played $1100, I would mathematically have a four-number winner – that equates to $1000. I divided 1100 by six instead of 57, because I made a quick mental move and came up with 18. So I knew there would be 18 or 19 three-number winners, and that’s $50 each,” he explains.
“At 18, I won 1000 dollars with a four-number winning ticket, and I won 18 winners with three numbers worth 50 dollars each, so that’s 900 dollars. Therefore, I invested 1100 dollars and got a return of 1900“, he says.
Testing his theory, Jerry initially invested $3,600 in tickets and won $6,300. Encouraged by his success, he increased his efforts, eventually involving his wife, Marge. The couple formed GS Investment Strategies, allowing family and friends to invest in their lottery scheme.
For several years, played 12 times at Michiganaccumulating millions in prizes. When Michigan discontinued the game, the Selbees moved their operation to Massachusetts, where a similar game, Cash Winfall, ran.
For six years, the Selbees meticulously managed their strategy in Massachusetts. At each roll-down event, they traveled almost 1,450 kilometers to buy tickets, spending many times more than 600 thousand dollars per game. They kept the lost tickets, worth 18 million dollars, in plastic containers, as evidence for possible audits.
Despite the effort, they enjoyed the challenge, considering it a satisfactory and profitable venture. Your company raised 26 million dollarsgenerating $8 million in pre-tax profits. The earnings financed family projects, including home renovations and education for his six children and numerous grandchildren.
The Selbees weren’t the only ones to discover the Cash Winfall loophole. A group of students from the Massachusetts Institute of Technology (MIT) also identified the opportunity. Led by a student who was undertaking an independent study project, the union raised funds to buy tickets in bulk. Over seven years, the group invested 17-18 million dollars in tickets, making at least 3.5 million dollars in profits.
In 2011, investigative journalists from The Boston Globe revealed that ticket sales were unusually high in Massachusetts. The ensuing inquiry confirmed that the Selbees and the MIT union had explored the system without violating any law. Despite having ended the game, authorities recognized that the participants’ actions were beneficial to the state, generating significant tax revenue.
Currently, Jerry and Marge have a calmer life, although their story came back into the spotlight with the film Jerry & Marge Go Large2022.
