Stefan Mandel used his maths skills to win lottery jackpots 14 times
A mathematical mastermind has explained how he has won the lottery 14 times. The now 91-year-old used probabilities and patterns to hit the jackpot again and again.
The probability of winning the lottery is estimated to be extremely low. Choosing the winning numbers is typically a game of chance.
However, Stefan Mandel from Romania, found a way to beat the odds. Born into poverty in 1934 he couldn’t pursue his passion, mathematics, academically, and had to work as an accountant earning $88 a month, which was just enough to survive.
On weekends, however, he focused on his mathematical passion, specifically on what is known as the Fibonacci sequence. One night he noticed a lottery drawing being broadcast on television.
But where everyone else saw chance, Stefan began to identify patterns. As reported by Spanish newsite El Español, he spent years researching possible combinations, developing a method he called “combinatorial condensation” with a number selection algorithm.
Using this method, he could predict at least five of the possible numbers, leaving only two possibilities to chance. This meant the possibilities were reduced from several million to just a few thousand.
In March 1965, he then partnered with a friend who provided capital in exchange for an 80/20 profit split. Their first attempt was profitable. They won the jackpot and several smaller prizes, worth a total of $20,000.
While Stefan’s share of the prize amounted to only $4,000, he was able to prove that his theory worked. Years later, Stefan emigrated to Australia and founded a lottery investment company after convincing several investors.
The core idea was that if the total cost of the tickets remained below the jackpot value, profits were guaranteed.
Come 1982, and Stefan’s firm had clinched 12 Australian jackpots, amassing millions and drawing the attention of the Government. In 1989, Stefan relocated to Virginia in the US with his family, lured by the state’s lottery system, which had a few exploitable loopholes.
Here there were unrestricted ticket purchases, home printing, and a choice of “only” 44 numbers instead of the typical 54. This final factor was crucial as it whittled down the potential combinations from 25 million to just seven million.
In February 1992, the Virginia jackpot had ballooned past $27 million. It was then that Stefan rallied 2,500 investors, raising over $9 million and managing to print nearly every conceivable combination on his tickets.
Consequently, Stefan scooped both the jackpot and an additional $6 million in smaller prizes, racking up a total of $33 million in winnings from a $9 million investment. “Using maths correctly guarantees a fortune,” he said at the time.
As anticipated, Stefan’s venture garnered global press coverage, but also piqued the interest of the FBI and CIA. However, much like their Australian counterparts, they found no illegality in his actions.
The former accountant’s exploits did, however, trigger reforms in the lottery system. Ticket purchases were capped per person, sales were confined to over-the-counter transactions, large investments were banned, and the randomisation systems were enhanced.
These alterations brought Stefan’s winning run to a halt. He attempted to replicate his method in other nations, including Israel and the UK, but was unsuccessful due to tighter regulations.
He eventually retired to an island in Vanuatu, in the South Pacific, where he ventured into property development. However, this endeavour didn’t pan out as expected as for years, he has been entangled in a legal dispute with his investors.
As reported by The Independent, here’s the six-step formula for how Stefan managed to make serious cash from the lottery:
- Calculate the total number of possible combinations. (For a lottery that requires you to pick six numbers from one to 40, that means 3,838,380 combinations)
- Find lotteries where the jackpot is three times or more the number of possible combinations.
- Raise enough cash to pay for each combination. (Stefan rounded up 2,524 investors for his push to win the Virginia lottery)
- Print out millions of tickets with every combination. (This used to be legal. Now you would have to buy the tickets right from the store)
- Deliver the tickets to authorised lottery dealers.
- Win the cash. And don’t forget to pay your investors. (Stefan pocketed only $97,000 [£74,000] after a $1.3m [£1m] win in 1987)