|Re: Article on +EV lottery group
||Fri, 03 August 2012 10:18
Registered: July 2005
Very interesting read, Iceman, thanks for sharing. Two highlights:|
"In every roll-down drawing in the game's history, for every $1 wagered, there was $1.15 (or usually more) sitting in the Cash WinFall prize pool to be shared among that drawing's ticket holders. In that sense, every ticket was worth more than it cost."
By buying in bulk for his G S Invstement Strategies group, Selbee could tap into favorable favorable margins, which he calculated to be between 17 and 21 percent before taxes.
"Anyone who put these two facts together would see an obvious way to make money: sit on the sidelines while other players build the jackpot up close to $2 million, and then jump in,"
Inspector General Sullivan did not recommend any action against lottery officials, but he reported Friday they knew Selbee and other gambling groups were winning big in Cash WinFall and did nothing to stop them.
The reason, it seems, was that the game wasn't just good for the high-volume bettors; It was good for the state, which kept a portion of all ticket sales, including those leading up to the roll-down drawings.
"Cash WinFall was a financial success for the lottery," Sullivan wrote. "It generated about $300 million in ticket sales, with nearly $120 million of that going to lottery operations and the pool of funds distributed to cities and towns.