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Massive bets called gamble for Lottery
Boston Herald ^ | November 15, 2003 | Elisabeth J. Beardsley

Posted on 11/15/2003 3:06:34 AM PST by SamAdams76

Lottery watchdogs are demanding a hard-and-fast policy on how to handle massive bets, as they seek answers about a mysterious Chicago man who tried to bet up to $10 million on the Mass Millions game.

Jan Saragoni, one of five commissioners who oversee the Lottery, called for more information about the money-man, whose identity the Lottery refused again to release yesterday.

``I have to say I was struck by the offer,'' Saragoni said. ``I guess I was struck by the organized manner in which this individual decided for approaching, making that kind of an offer.''

The Herald reported yesterday the Lottery already accepted a $60,000 cashier's check from the man - who returned a few days later to try to buy between 7 million and 10 million tickets, boosting his odds of hitting the $38.9 million jackpot to 50-50, up from 1 in 14 million.

Lottery board members first got wind of the massive would-be wager at a meeting Wednesday, as agency chiefs were preparing to accept it - a decision they had backed down from by Wednesday night.

Saying the lack of details made her squirm, Saragoni warned the Lottery to ``look long and hard'' before accepting huge amounts of money from unknown individuals.

``There are just too many unknowns,'' Saragoni said. ``Who was the individual? Who was he representing? What is the precedent for these kinds of bets? What impact does that have on the rest of the public? Are people encouraged or discouraged from purchasing a ticket?''

Lottery Director Joseph C. Sullivan and his boss Treasurer Timothy P. Cahill could not be reached yesterday.

The other Lottery board members - Gov. Mitt Romney's Consumer Affairs Director Beth Lindstrom, Comptroller Martin Benison and Public Safety Secretary Ed Flynn - also did not return calls for comment.

Republicans, meanwhile, had some fun at Democrat Cahill's expense, with GOP director Dominick Ianno pointing to previous Herald reports about unscratchable Lottery tickets as he cracked, ``Maybe they should have tried to unload all of those defective scratch tickets on this guy.''


TOPICS: Crime/Corruption; Government
KEYWORDS:
Another egregious example of our state government being afraid that citizens might shun their gambling parlors (a/k/a "The Lottery"). I abhor gambling but would not mind seeing it made legal now that Massachusetts has pushed it into every corner of the state. Why should the government have a monopoly on immorality and fleecing the poor and the ignorant?
1 posted on 11/15/2003 3:06:35 AM PST by SamAdams76
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To: SamAdams76
``Who was the individual? Who was he representing? What is the precedent for these kinds of bets?

This is starting to smell suspiciously like a lottery hate crime. For good measure, it should be prosecuted under the RICO statutes.

2 posted on 11/15/2003 3:25:34 AM PST by nygoose
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To: nygoose
The government essentially said, "Oh my God! That would be gambling!?! There would be risks!"
3 posted on 11/15/2003 4:04:43 AM PST by blanknoone
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To: SamAdams76
" ``Who was the individual? Who was he representing? "

Just say yes sir, smile, then shut up.
4 posted on 11/15/2003 4:21:32 AM PST by semiarticulate (emoticons on strike(sad face))
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To: SamAdams76
How much is 1 ticket?
5 posted on 11/15/2003 4:32:48 AM PST by AmericaUnited
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To: SamAdams76
I don't suppose this man is representing anyone but himself. He evidently has enough smarts to try to improve his odds and is willing to bet his entire nest-egg to do it. Certainly betting a whole lot of different numbers in just one drawing is better odds than just one number in a lot of different drawings. But I am not sure that he has reduced the odds to 50-50. Weeks go by without anyone hitting the big prize in that lottery, so he could find out that none of his tickets win ... and neither did anyone else's. He's improved his odds but he's still taking a big risk.
6 posted on 11/15/2003 4:34:29 AM PST by DonQ
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To: DonQ
He's improved his odds but he's still taking a big risk.

What you say is true. However, the lottery is based on participation by the small buyer participants. If they are discouraged from playing because of these large block of tickets players, revenue will decrease.

I support placing an upper limit on the number of tickets purchased in a block, or I won't play.

7 posted on 11/15/2003 4:52:43 AM PST by toddst
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To: DonQ
$10 million and the odds were only 50-50? Not good enough. About 10 years ago, a group of investors figured out a way to make the Virginia lotto a sure thing. They hired accountants and about 100 ticket buyers, set up 7-11 stores in advance, and waited until the jackpot got big enough; then they bought about 7 million tickets and won the $47 mil. jackpot; it shows it can be done.
8 posted on 11/15/2003 5:08:48 AM PST by CaliGirlGodHelpMe
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To: CaliGirlGodHelpMe
Buying 10 million lotto tickets does not increase the probability of coming out ahead. This would appear to be a very bad gamble. 40 percent of the revenue is off the table, the state already having cut the pot.

However there should be an investigation of the man who somehow wound up with two winning tickets out of three in a 70 million dollar lotto.

9 posted on 11/15/2003 5:36:11 AM PST by dwilli
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To: dwilli
Buying 10 million lotto tickets does not increase the probability of coming out ahead. This would appear to be a very bad gamble. 40 percent of the revenue is off the table, the state already having cut the pot.

Exactly! The lottery is known as a tax on stupidity. Especially on the daily 3 digit number drawings. The payoff is horrible. A thousand to one odds only pays 500 to one on your dollar wagered. Donald Trump would LOVE to have those meager payouts in his casinos!

10 posted on 11/15/2003 7:06:33 AM PST by Ronaldus Magnus Reagan
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To: SamAdams76
OK. So he wins. How does he find the winning ticket out of 7 million?
11 posted on 11/15/2003 7:11:05 AM PST by CaptRon
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To: Ronaldus Magnus Reagan
Buying 10 million lotto tickets does not increase the probability of coming out ahead.

WRONG! Of course it does. Lets review. For the sake of discussion lets say there are 5 numbers between 1 and 10 (actually there are way more, but this makes the math easy). That means there are a total of 10 to the 5th power possible winning choices. Or odds of 1 in 100,000 if you buy a single $1 ticket. Now if you buy 10 $1 tickets you have improved your odds to 10 in 100,000 (assuming they are unique combinations, of course). If you buy 100,000 unique tickets you have guaranteed that you will win the lottery!

This could be a good investment if it is a progressive lottery, as most are. Say the lotto returns 50% to players. The prize grows with each week no one hits the jackpot. Eventually it gets up to several times the cost of buying all the tickets. Now your "buy em all" strategy makes sense. You could still lose money though, because there may be several other people who have the same winning ticket, with whom you will have to split the prize.

12 posted on 11/15/2003 9:06:01 AM PST by Jack Black
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To: SamAdams76
This is why the CA lottery used to pay out over a 20-year period. At that time the odds were 18 million to one. Suppose the lottery paid off in one lump sum. If the jackpot ever got to, say, 36 million, one could go to a bank, borrow 18 million, buy every possible combination, and give them back $18 million plus interest the day after.

The only downside was that it was always possible that someone also bought the winning combination, in which case you'd have to share the proceeds.

Now CA offers a "lump sum" but it is a fraction of the total payout. They also raised the odds to something like 1 in 50 million or some ridiculous number like that.

--Boris

13 posted on 11/15/2003 10:06:56 AM PST by boris (The deadliest Weapon of Mass Destruction in History is a Leftist With a Word Processor)
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