In the spring of 2023, a high-stakes operation aimed at exploiting the Texas lottery drew nationwide attention. Led by former London banker Bernard Marantelli, the scheme sought to purchase nearly every possible combination of numbers for an upcoming $95 million lottery jackpot. With 25.8 million possible combinations and tickets priced at $1 each, the group stood to gain a whopping $57.8 million profit if no one else picked the same winning numbers.
Marantelli’s crew set up multiple locations in Texas, using everything from a defunct dentist’s office to a warehouse to house ticket-printing terminals, which ran non-stop for three days.
At the heart of the operation was Zeljko Ranogajec, a secretive Australian gambler with a reputation for high-stakes betting. Known as “the Joker” for his ability to outwit casinos and racetracks globally, Ranogajec had previously applied Wall Street-style analytics to gambling and was behind a series of successful operations worldwide, as reported by MSN. His group, which bet an estimated $10 billion annually, used data and math to tilt betting odds in their favor. The Texas lottery play was their most ambitious yet, and it ultimately paid off with the jackpot win.
The operation drew controversy after the jackpot was claimed by a limited partnership called Rook TX, sparking outrage among Texas politicians. Lieutenant Governor Dan Patrick called the win “the biggest theft from the people of Texas in the history of Texas.”
While the operation was legal, it raised questions about the fairness of state lotteries and whether such large-scale ticket-buying schemes could undermine public trust. Governor Greg Abbott ordered an investigation into the incident, with calls for transparency and fairness in the Texas lottery system.
In an industry already plagued by concerns over fairness, Marantelli and Ranogajec’s massive ticket purchase prompted state officials to examine similar operations nationwide. The use of data-driven strategies to target specific lottery games has become increasingly common. Groups like Black Swan Capital, made up of Princeton graduates, have applied similar strategies to win millions in various states, though they largely operate under the radar to avoid publicity. As more gambling syndicates turn to lotteries as a lucrative business, some are pushing for greater regulation to prevent massive bulk buying from dominating the system.
In response to growing concerns, some states, including Maryland, have imposed limitations on bulk ticket purchases. However, some experts argue that these operations are not inherently unethical, with comparisons to investment strategies in the stock market. John Martin, director of the Maryland Lottery, suggested that these operations might be no different than hedge funds seeking to gain an edge over the market. While legal, the ethics of such mass ticket-buying operations continue to be debated, with critics arguing that they undermine the intended randomness of lottery draws.
The Texas incident serves as a cautionary tale of how data-driven strategies are reshaping the landscape of state-run lotteries. Despite the legality of the operation, it highlighted a fundamental issue: when the stakes are high enough, mass ticket-buying can turn a game of chance into a calculated investment.
