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Improbably Frequent Lottery Winners

cjr.org

31–40 of 99 posts

Re: Improbably Frequent Lottery Winners

#31

I sincerely hope that the states would be willing to look at Oregon and Florida's solutions to the requests. I actually also really like the CD being issued, because it's a physical thing that you could take into court in contrast to a web page (which often isn't quite as useful these days because all of these fancy web apps) and know that it hasn't changed one iota. It'd be better if it were a usb thumb drive if it'…

On the contrary, as someone who lives in a place where lottery winners are allowed to remain anonymous, I find it bizarre that these states are willing to give out such full information (even for winnings as small as $600) to anyone who asks, not just to law enforcement investigating potential fraud.

The chance of your life getting ruined after winning the lottery is proportional (among other factors) to the number of people who know that you've suddenly landed a fortune and want a favor. I once read an article about people who continued to live normally after winning the lottery. Most of them only told a few people and tried not to draw attention. One man didn't even tell his wife until he lost his job a few years later and had to explain to her why she shouldn't be worried at all!

But that's going to be impossible if the state publishes your name and the exact amount of your winnings for anyone to see. They might as well publish everyone's tax records, too, including Trump's that everyone's been asking for.

Re: Improbably Frequent Lottery Winners

#32
post #26

There is a bigger issue here: Why wasn't such an analysis done 50 years ago? Where is the incentive for people to uncover fraud? All governments should have a rule that says: if you uncover fraud or waste in a government department you get 5% of the money that taxpayers save.

Your proposed rule contains a great fraud opportunity: pay someone in government to "accidentally" waste money and then "uncover" it to cash out 5% of the waste.

Re: Improbably Frequent Lottery Winners

#33
post #29
post #14

Years ago I had a friend who's father made a living smuggling cigarettes (and probably other stuff) from Northern Africa to Gibraltar. He laundered his income by buying winning lottery tickets.

Where would one find sellers of winning lottery tickets? You must either be a store clerk or wait outside for people to cash them in?

People who are genuine winners, for example? You pay them a premium for the ticket.

Re: Improbably Frequent Lottery Winners

#34
Persistence might be key? Some people may be addicted to gambling with lottery tickets, or may just buy more than others in the same area.

I remember once early in my IT career, I was doing work for the local government agency that was responsible for issuing all the 'scratch the ticket and find 3 matching symbols' lottery games in our state. They used to sell the tickets at the front counter of the agency office as well as various shops and newsagencies around town etc.

While I was working on a PC in the manager's office, another manager came in and said that one of the games had sold ALL tickets at the other retail outlets, and that they had about a hundred $2 tickets left at their front desk and the main prize of $1000 hadn't gone off yet.

When one manager left the room, the other manager looked at me and said "Well, the rules forbid us from buying those tickets, but if you have a spare couple of hundred on you, I'd buy up all those tickets at the front counter...". I thought it was all a bit weird and didn't bite, but I found out later that a friend of someone who worked there bought all the tickets, and sure enough, won the $1000 prize in that particular game. Made me wonder how many 'friends' of people who worked there were in on the old unsold ticket grey marketing?

Also while growing up, there was a family that lived down the road from us who always seemed to win almost every giveaway competition in our town - free TV's, food, whitegoods, airline tickets, you name it. One day I was actually there visiting their son who was about the same age, and I noticed that their mother was entering competitions almost as a full time occupation. She would get various catalogues and our local newspaper and sit down with the kids every afternoon cutting out and sending out coupons, competition entries and sweepstakes all the time - they would have to be sending out at least 20+ per day. Way to stack the odds in their favour.

They eventually left town in the most spectacular fashion - when Michael Jackson did one of his huge tours of Australia, the family won a set of tickets to see him in a sweepstakes, then promptly bought tickets for ALL of his other shows in other states in Australia! This information got leaked to the press, and Jackson found out about it, and ended up inviting this family to Neverland in the US where 2 of the kids ended up staying for years.

You that old saying - you make your own luck. I think this particular family lived it.

Re: Improbably Frequent Lottery Winners

#35
post #29

Earlier quoted context omitted.

Where would one find sellers of winning lottery tickets? You must either be a store clerk or wait outside for people to cash them in?

People who are genuine winners, for example? You pay them a premium for the ticket.

Yeah? Where would one find genuine winners? It's not like there's an open market for this, and since winners are random people they are unlikely to be aware of black markets. Paying them a premium is obvious.

Re: Improbably Frequent Lottery Winners

#36
post #35

Earlier quoted context omitted.

People who are genuine winners, for example? You pay them a premium for the ticket.

Yeah? Where would one find genuine winners? It's not like there's an open market for this, and since winners are random people they are unlikely to be aware of black markets. Paying them a premium is obvious.

Paying them a premium is not precisely accurate.

A $100,000 lottery ticket would in the US involve 30-45k in taxes for an unmarried person.

So I bet it would probably sell for around $75,000 cash up front, which is a decrease from the sticker price.

But if I was the winner, I would treat it as extremely shady and probably just go the legit route for almost any price.

The US banking system easily detects large cash deposits under 10k even into bank accounts, and then confiscates the money.

And I don't really want to keep $75,000 cash in my mattress.

Re: Improbably Frequent Lottery Winners

#37
post #32
post #26

There is a bigger issue here: Why wasn't such an analysis done 50 years ago? Where is the incentive for people to uncover fraud? All governments should have a rule that says: if you uncover fraud or waste in a government department you get 5% of the money that taxpayers save.

Your proposed rule contains a great fraud opportunity: pay someone in government to "accidentally" waste money and then "uncover" it to cash out 5% of the waste.

Well, if properly restricted to criminal fraud, it does make sense to me?

Re: Improbably Frequent Lottery Winners

#38
Clarance Jones http://archive.boston.com/business/articles/2011/11/05/frequ...

TL;DR - Audited by IRS but had 200 boxes of losing tickets & records in storage facilities, which the auditors apparently didn't want to search through. He ended up winning his defense against the state's tax claims as well.

How does he win so much? Is he psychic?

Re: Improbably Frequent Lottery Winners

#39

Clarance Jones http://archive.boston.com/business/articles/2011/11/05/frequ... TL;DR - Audited by IRS but had 200 boxes of losing tickets & records in storage facilities, which the auditors apparently didn't want to search through. He ended up winning his defense against the state's tax claims as well. How does he win so much? Is he psychic?

Probably just caught a lucky break when they didn't want to search through the 20 boxes of duds he bought from 7/11 for less than the cost of paper ;)

Re: Improbably Frequent Lottery Winners

#40
post #35

Earlier quoted context omitted.

Yeah? Where would one find genuine winners? It's not like there's an open market for this, and since winners are random people they are unlikely to be aware of black markets. Paying them a premium is obvious.

Paying them a premium is not precisely accurate. A $100,000 lottery ticket would in the US involve 30-45k in taxes for an unmarried person. So I bet it would probably sell for around $75,000 cash up front, which is a decrease from the sticker price. But if I was the winner, I would treat it as extremely shady and probably just go the legit route for almost any price. The US banking system easily detects large cash de…

But you're not the winner, and among winners, there are some willing to do the deal for some price.

Even you. For example, you wouldn't want to keep $75K in your mattress. Would you keep $100K? $750K? A million?

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