Every once in a while, you read a story about a person winning the lottery twice or three times, and it seems amazing that anyone could be so lucky. But when the same person wins the lottery thousands of times, something is wrong. The two biggest lottery scams in recent years happened in Massachusetts and Texas. The trick was different in each case but very effective. The perpetrators of the winning plan were jailed in Massachusetts, but not in Texas, where almost anything is legal except abortion.

In Massachusetts, the story appeared in the Boston Globe magazine about a family—a father and two sons—who collected $20 million from the lottery in less than a decade, with more than 14,000 winning tickets.

Dan O’Neil, the director of compliance and security for the Massachusetts State Lottery Commission, doesn’t typically get alerted when someone shows up to claim a $1,000 prize from a scratch-off ticket. Such transactions are usually quiet, pleasant, unremarkable. The lucky winner produces the ticket and the agent, sitting at a counter behind a pane of glass in Dorchester, doles out the money.

The call came from a customer service agent in the lobby at lottery headquarters and the message was short. The Jaafars are here again, the agent said. Yousef Jaafar, this time….

An information technology expert at the lottery had run the math to show just how unlikely it was. An instant-win game called “$10,000,000 Big Money” had a 1 in 1,106.72 chance of producing a jackpot of $1,000 or more, he reported. Yet somehow, over a recent span of six months, the Jaafars had managed to claim nearly $2 million in winnings, the bulk of it from instant tickets like “$10,000,000 Big Money.” To win at that rate, the Jaafars would’ve had to purchase 22,859 such tickets every day, 952 tickets every hour, 16 tickets every minute. “Every minute of every day,” the official said. “Twenty-four hours a day.”

In lottery terminology, there was a name for this. The Jaafars were “high-frequency winners.” They were also breaking the law and the rules of the lottery itself by working with dozens of convenience store operators in an underground network where everyone was trying to avoid paying taxes on lottery prizes. In this network, everyone got cash under the table while the Jaafars got the winning tickets to claim as their own. A lot of them. In 2019 alone, the Jaafars claimed more than $3.2 million in winnings. Yousef was the sixth-highest ticket casher in the entire state that year, Mohamed was third, and their father topped the list…

The Jaafars’ scheme was built on a premise that’s been known to gamblers for decades: Some people prefer not to publicly claim their winnings, particularly if they want to hide money from the Internal Revenue Service.

At American racetracks since at least the 1960s, these reluctant winners have turned to “ten percenters” for help. In the shadows beneath the grandstands, ten percenters would pay cash for someone’s winning ticket, minus a 10 percent cut off the top and often even more — 15 or 25 percent. The real winner would walk away with cash in hand, off the books, tax-free, while the ten percenter would claim the full prize at the racetrack window and often avoid taxes by claiming large gambling losses at the end of the year or by submitting fake identification at the track.

It usually amounted to tax evasion and could have devastating ramifications: the government sometimes lost as much as $1 million a week in tax revenue at a single track. It was only a matter of time before a similar practice of ten percenting infected state-run lotteries. For any jackpot over $600, winners have to produce a valid ID and Social Security number, and pay taxes. Those who owe back taxes or child support have one more obstacle to clear: Massachusetts authorities will take that money before paying out any winnings.

In this world, someone holding a scratch-off ticket worth $1,000 can sell their prize to a convenience store operator for $750 or $850. The winner leaves with cash under the table. The convenience store clerk picks up the phone and calls a runner. This person shows up and buys the ticket for the discount price, minus a cut for the clerk — maybe $50. The runner then pretends to be the real winner and claims the ticket at a lottery office for its full value, scoring a profit of $100 or $200.

Quite a racket. But they didn’t get away with it. The father was sentenced to five years in prison, the older son got 50 months, and the younger son got a plea deal.

In Texas, a slick operation based in New Jersey managed to score a $95 million jackpot by buying every numerical combination.

By April 22, seven months had passed without a winner of the jackpot, and the top prize had grown to $95 million.

That night’s draw — 3, 5, 18, 29, 30, 52 — matched a single ticket purchased in a small store in Colleyville, outside of Fort Worth. 

Winners have six months to claim their prize, either in payments over 30 years or a lump-sum, typically worth about half. On June 27, the state of Texas issued a check for $57.8 million to a New Jersey-based limited partnership apparently formed to collect the jackpot, called Rook TX.

The Texas Lottery Commission, whose proceeds mainly fund public education, celebrated the big win — “generating much needed revenue for Texas Schools,” then-Executive Director Gary Grief wrote. “What the Texas lottery is all about.”

But a statistical analysis of the April 22 Lotto Texas drawing strongly suggests that night’s draw wasn’t what a lottery is about at all. Rather, the numbers indicate Rook TX beat the system.

Unbeknownst to the millions of players who’d invested their hopes and dreams into the game and its life-changing jackpot, the winner had already been decided.

Rook TX appears to have engineered a nearly risk-free — and completely legal — multimillion-dollar payday.

And the state of Texas helped.

Warning: Numbers ahead

While lottery players have occasionally exploited a hidden mathematical advantage to guarantee a lottery profit, there is one sure way to win a jackpot. Stefan Mandel did it 14 times, and it had little to do with luck. He simply bought up every numeric combination.

Yet Mandel, a Romanian economist and mathematician, had to master both probability and logistics. The jackpots needed to be both big enough to cover his costs, as well as favor his chances of being the only winner; splitting a payout could be ruinous. Because buying so many lottery tickets required going to dozens, if not hundreds of separate stores, he required a team of accomplices. 

The recent introduction in Texas of digital lottery apps has lowered the logistical obstacles. The Lotto Texas drawing of April 22, meanwhile, presented a perfect-storm of high reward and low risk that practically guaranteed that an opportunistic player with a sizable bankroll could walk away with tens of millions of dollars.

The evidence is in the numbers.

The first thing someone wanting to buy a lottery drawing would need to know: How many tickets would you need to buy to cover every numeric combination in a game like Lotto Texas? The answer, said Tim Chartier, a Davidson College math professor who studies sports and lottery analytics: 25.8 million.

Lotto Texas draws typically generate 1 million to 2 million ticket sales. Records from the Texas Lottery Commission show that in the days leading up to the Saturday night draw, just over 28 million Lotto Texas tickets were purchased.

That doesn’t prove Rook TX accumulated the nearly 26 million tickets necessary to guarantee a win. But an examination of the second prizes awarded indicates it almost certainly did.

In addition to the jackpot for matching all six numbers, Lotto Texas pays lesser prizes to players who guess five-of-six, four-of-six and three-of-six of the draw. The total possible combinations for each, according to Nicholas Kapoor, a Fairfield University statistics professor who studies lottery probability: 288 five-of-six combos, 16,920 four-of-six combos and 345,920 three-of-six winners.

Lower-value prizes can be cashed in at any retailer that sells tickets, and the state doesn’t track them. But Texas requires any prize over $599 to be redeemed at an official Texas Lottery Commission center, which records the winners. The April 22 drawing paid $2,015 to its five-of-six winners.

Records from the Texas Lottery Commission show Rook TX cashed in 289 winning tickets in the five-of-six game — the same number as all possible combinations plus one for the grand prize ticket. The odds a single entity managed to win the grand prize and every possible five-of-six prize — but somehow didn’t buy up every combination — are vanishingly small, said Chartier…

There is compelling evidence that Lotto Texas’ ballooning jackpot was being probed by sophisticated players in the weeks leading up to Rook TX’s big win.

With the jackpot climbing to $60 million, the April 1, 2023, draw saw a sudden sales spike. Three million tickets were purchased, more than double the previous game.

No one matched all six numbers, but the draw produced a large number of five-of-six winners. More unusual: 17 of the 40 winning five-of-six tickets were held by the same person — a rate that is extremely unlikely to have occurred randomly.

Records show the claimant, Thomas Ashcroft, purchased all his winners through two stores — the Colleyville outlet and Luck Zone, an app-affiliated store in Round Rock. Although Ashcroft gave a Connecticut address, the Chronicle could not locate anyone with that name in the region.

Another burst of sales preceded the April 15 drawing — 7.4 million tickets. While no one claimed the jackpot, the number of five-of-six winners was again high. This time, more than three-quarters of the 71 winners were claimed by a single entity — Rook TX. State records show it purchased all 55 winning tickets from the same two stores. 

For one entity to randomly win that many of the five-of-six prizes, Chartier calculated a person would have to play a lottery game every day for 327 years. 

The Texas Lottery Commission said there was nothing suspicious about the games, which it said were attracting more players because of the big prize and relatively good odds of winning: “This is not indicative of unusual activity in the lottery industry, but rather a strategic decision made by players or groups that are in pursuit of high jackpots.” 

A week later Rook TX won the $95 million jackpot and 289 five-of-six winners. The April 15 and 22 draws are the only times its name appears in the state’s registry of lottery winners.

The Texas Lottery Commission allows winners of $1 million and more to remain personally anonymous, so identifying Rook TX’s members is practically impossible. Delaware corporation records show it was formed two weeks before claiming the top prize. The limited partnership’s registered agent, Glenn Gelband, a lawyer in Scotch Plains, N.J., did not respond to a request for comment.

Texas lottery officials said there was nothing illegal about buying up all the numbers.

Massachusetts put the guys who played the system into prison. Texas can’t find them and apparently doesn’t care. The only way to beat the guys who beat the system is to hope that two or three other combines copy their tactics; they would all lose money by splitting the prize.