Economist Won the Lottery 14 Times With Basic Math — And This Could Be Why It Actually Worked

Most people think that winning the lottery is based on pure luck, but a Romanian-Australian economist, Stefan Mandel, proved otherwise. He used math to win 14 times, and his secret is much simpler than one would expect.

The story of this lotto expert began in his hometown in Romania, where his first win gave his family a ticket to move somewhere else, to look for a better life. However, Stefan did not stop here and wanted more, so he honed his skills and strategy, eventually scaling his operations from Australia to the US.

Cover Every Possible Combination

Stefan used a very simple way to win the lottery by applying a fundamental math principle, which is that if the total jackpot is higher than the cost it would take to buy every possible combination, then it is worth it. In this way, buying all the necessary tickets guarantees a win, and if his math is right, then a big sum of profit as well.

An example would be Stefan buying all the combinations for a 6-number lottery that has over 3.8 million possibilities. His basic math showed that the price of each ticket multiplied by the total number of combinations is still less than the total jackpot, giving him enough profits to get back all the expenses and more.

This is a very time-consuming operation, and there was no way Stefan could handle the work alone, so he assembled a syndicate. They printed millions of tickets via home computers, using money from a pool of investors. So, the win will be divided among all of them, but so is the risk of losing their investments.

Read more: My Modern Met

Optimize Using Combinatorial Condensation

Stefan Mandel

Buying up every single combination is not the best mathematical way of winning a lottery, although it makes the percentage of winning 100%. Stefan realized this as the cost to buy up all the needed tickets is high, and the profits might not be satisfying enough.

So, they developed a system called “combinatorial condensation” where they narrowed down the tickets they are going to buy, while still retaining a high possibility of winning, but not a 100% this time. This strategy proved to be effective as the cost was significantly reduced.

Scale Up with Syndicates and Legal Loopholes

After being successful in Romania, Stefan moved to Australia and did his operations there until they reached the US and scaled the syndicate heavily. They exploited the system that allowed bulk purchases and computer-generated tickets.

At their peak, they were buying up millions of tickets from different parts of the world, funded by a growing number of investors, and even establishing a warehouse as headquarters. FBI and CIA investigated, but since the whole operation was a giant loophole in the lottery rules, it means they were not doing anything illegal, at least not yet.

Read more: IFLScience

It Worked—Until the System Changed

Soon, the officials got hold of these operations, after Stefan and his team won 1 in Romania, 12 in Australia, and 1 in the U.S. They also won several smaller prizes. However, eventually, lottery boards have banned a lot of loopholes that are necessary for their operation to function.

They could not bulk purchase anymore, printing lotto tickets from home computers was outlawed, and certain syndicates were not allowed to be formed. With the legal loopholes closed, the math could not work anymore, despite it still being true even today. This led to the bankruptcy of the syndicate in 1995, but Stefan’s story remains a lesson for better or for worse.

An Economist Won The Lottery 14 Times By Buying Every Number Combination | Planet Money | NPR

Author's Final Thoughts

Stefan Mandel developed a system based on probabilities and basic mathematics, proving that you can create your own luck. His method worked almost perfectly, after all, it is not guesses, but real calculations. If you can get any lesson from his story, we hope it is that with the right preparations and strategy, you can beat luck even if all the odds are against you.

Read next: More Proof Emerges That Vikings Set Foot in America Centuries Before Columbus Ever Set Sail