How A Retired Couple Used A Lottery Loophole To Win Over Rs 200 Crore

A retired couple from the United States has managed to accumulate over $26 million (approximately Rs 200 crore) in lottery prizes, thanks to their impressive math skills. Jerry and Marge Selbee, 80 and 81 respectively, ran a convenience store in Evart until they sold it and retired in their 60s, New York Post reported.

In 2003, Mr. Selbee saw a brochure for a new lottery game called Winfall and quickly figured out a mathematical loophole that could almost guarantee winning. The game, called WinFall, had a unique feature that if the jackpot reached US$5 million ($7 million) and failed to go off, the money would roll down to ticket holders with fewer winning numbers. He was sure that the mathematical flaw would mean guaranteed winnings if he bought enough tickets.

Mr. Selbee, who majored in math in college, calculated that if he spent $1,100 on 1,100 tickets, odds are he'd have one four-number winner that would pay out $1,000, and at least 18 or 19 three-number winners that paid $900. That meant his $1,100 investment would yield a $1,900 return, for a tidy profit of $800.

''I looked at the odds, I looked at what the payoff would be and I did a risk-reward analysis. It took me less than two minutes to figure out that that game could be profitable,'' he said.

The couple initially experimented by investing $3,600 in Winfall tickets, earning approximately $6,300 in winnings. After that, he bet $8,000 and again doubled his money game.

He told CBS News, ''If I played $1100, mathematically I'd have one four-number winner – that's 1000 bucks. I divided 1100 by six instead of 57, because I did a mental quick dirty, and I came up with 18. So I knew I'd have either 18 or 19 three-number winners, and that's 50 bucks each. At 18, I got $1000 for a four-number winner, and I got 18 three-number winners worth $50 each, so that's 900 bucks. So I got $1100 invested and I've got a $1900 return. It's just basic arithmetic."

Eventually, they got so good at the game that they set up a corporation, G.S. Investment Strategies, and invited their friends and family to buy into the business for $500 apiece.

Later, they came to know about a similar Winfall lottery in Massachusetts, nearly 700 miles away. So the Selbees traveled to Massachusetts every time there was a rolldown, buying hundreds of thousands of tickets at two convenience stores. 

The Selbees said that over the nine years they played Winfall, their group won a total of $26 million and they made about $8 million in profit before taxes. The money was used to renovate their house and help pay for the schooling of their six children, 14 grandchildren, and 10 great-grandchildren.

Their winnings and large purchase of tickets also triggered an investigation by the Inspector General. However, it was discovered that the Selbees had been playing by the rules and there was nothing illegal about their methods. 

The Selbees' story now has become the inspiration for the new movie ''Jerry & Marge Go Large.''