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Statistician Cracks Code For Lottery Tickets

Hugh Pickens writes writes "Lottery Post has an interesting story about Mohan Srivastava, an MIT educated statistician who became intrigued by a particular type of scratch-off lottery ticket called an extended-play game — sometimes referred to as a baited hook — that has a tic-tac-toe grid of visible numbers that looks like a miniature spreadsheet. Srivastava discovered a defect in the game: The visible numbers turned out to reveal essential information about the digits hidden under the latex coating. Nothing needed to be scratched off — the ticket could be cracked if you figured out the secret code. Srivastava's fundamental insight was that the apparent randomness of the scratch ticket was just a facade, a mathematical lie because the software that generates the tickets has to precisely control the number of winners while still appearing random. 'It wasn't that hard,' says Srivastava. 'I do the same kind of math all day long.'"

31 of 374 comments (clear)

  1. Small typo by benedictaddis · · Score: 4, Funny

    "Lottery Post has an interesting story about Mohan Srivastava, a *millionaire* MIT educated statistician" Fixed that for you

    1. Re:Small typo by spun · · Score: 4, Interesting

      Some people are not motivated primarily by greed. I'm guessing many people who go to MIT and become statisticians fall into that category, I mean, if they have that mindset and level of intelligence they could easily have gone to a business school and gone on to make millions. I'm not saying scientists, engineers and mathematicians are saints, they can be as petty as anyone, but if they wanted to be millionaires, they would have chosen different careers.

      --
      - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
    2. Re:Small typo by c6gunner · · Score: 4, Funny

      How do you tell the difference between an MIT mathematician and a smart MIT mathematician? One talks to the media, the other is a millionaire.

    3. Re:Small typo by danlip · · Score: 3, Informative

      from TFA:

      "Once I worked out how much money I could make if this was my full-time job, I got a lot less excited," Srivastava says. "I'd have to travel from store to store and spend 45 seconds cracking each card. I estimated that I could expect to make about $600 a day. That's not bad. But to be honest, I make more as a consultant, and I find consulting to be a lot more interesting than scratch lottery tickets."

    4. Re:Small typo by artor3 · · Score: 4, Insightful

      Statistics isn't hard? Let me guess, you base that on a couple of college courses? As an engineer, I've frequently run into statistical problems that neither I nor my coworkers have even the foggiest notion of how to approach. Things can get really ugly when you start dealing with the real world.

      You're certainly right about one thing though - most mathematicians do the math because they enjoy it. Those aforementioned problems that were beyond me? I typically recruit some mathematicians and physicists I know from college, and they solve them for free.

    5. Re:Small typo by MoonBuggy · · Score: 5, Informative

      He comments on the issue in TFA:

      "I remember thinking, I'm gonna be rich! I'm gonna plunder the lottery!" he says. However, these grandiose dreams soon gave way to more practical concerns. "Once I worked out how much money I could make if this was my full-time job, I got a lot less excited," Srivastava says. "I'd have to travel from store to store and spend 45 seconds cracking each card. I estimated that I could expect to make about $600 a day. That's not bad. But to be honest, I make more as a consultant, and I find consulting to be a lot more interesting than scratch lottery tickets."

      Seems like a decent, down-to-earth guy; he's pretty well off already (six figure salary, if he's making more than $600/day), so I'm sure it's a prospect that was easier for him to forego than most, but it looks like he's got a good balance between the comfort of money and enjoyment of his work.

    6. Re:Small typo by PopeRatzo · · Score: 5, Funny

      I find consulting to be a lot more interesting than scratch lottery tickets.

      Jesus, what a choice to have to make: consulting or scratch lottery tickets.

      Better to throw oneself off a cliff.

      --
      You are welcome on my lawn.
    7. Re:Small typo by icebraining · · Score: 4, Interesting

      The obvious solution is to make a webpage to crack the code, and then make a deal with someone who has a smartphone but makes much less than $600/day.

    8. Re:Small typo by Zelgadiss · · Score: 3, Insightful

      Wow defensive much...

      He is just stating statistics (at least those that he bumps into in his line of work) isn't easy, and what's wrong with asking his "former peers" for help if they don't mind.

      Where did he say he is an Excellent engineer?
      What makes you think he is obsessed with money? It's a job of course you do it for money.
      Prestige? You speak as if academics don't have any prestige to their jobs.

    9. Re:Small typo by Daniel+Dvorkin · · Score: 5, Funny

      The best advice for someone who wants to "make millions" came from the Buddha.

      If you meet the millionaire on the road, kill him?

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    10. Re:Small typo by Max+Littlemore · · Score: 4, Insightful

      Well you're an arrogant arsehole, aren't you? You've just accused the guy of a bunch of stuff you've derived from your own assumptions, you appear to deride the guy as being obsessed with prestige and then you go on to blow your own trumpet.

      You come off as an arrogant and hypocritical prick. And while you might be good a mathematics, I would hazard a guess you're not much use for anything else... case in point: you deride people who, knowing that they don't have the skills to do a task on their own, call on friends for help. Going it alone is generally a less successful strategy if the sum of human achievement is anything to go by.

      --
      I don't therefore I'm not.
    11. Re:Small typo by lxs · · Score: 3, Insightful

      Spoken like a true parapsychologist. More bad science comes out of researchers underestimating statistics than out of all other sources combined.

  2. breaking news by uvajed_ekil · · Score: 5, Funny

    This just in, MIT-educated statistician Mohan Srivastava has retired suddenly at a young age and is not taking questions.

    --
    This is a hacked account, for which the owner can not be held responsible.
    1. Re:breaking news by Anonymous Coward · · Score: 5, Interesting

      This just in: MIT-educated statistician Mohan Srivastava was sued for DMCA violations for demonstrating a trivial security flaw in lottery tickets.

  3. Horatio Caine says by Anonymous Coward · · Score: 3, Funny

    Now that's *sunglasses* the ticket.

    YEAAAAAAAAAAAAAAAAAAAAAH!

  4. Seems to be the same as the Wired Article by joeflies · · Score: 5, Informative

    The same article appeared in Feb 2011 issue of Wired even though Lottery Post doesn't seem to go out of its way to attribute the author and cite the issue properly.

  5. Coolest part of the article by artor3 · · Score: 5, Interesting

    After calculating that his average winnings would come out to $600 a day:

    "People often assume that I must be some extremely moral person because I didn't take advantage of the lottery," he says. "I can assure you that that's not the case. I'd simply done the math and concluded that beating the game wasn't worth my time."

    Moral of the story for those who play the lotto: Even if you figure out how to break the game, it still isn't worth playing.

    1. Re:Coolest part of the article by artor3 · · Score: 4, Insightful

      Sure, but those are big crooks. Ripping off the lotto to the tune of $150k a year makes you a small crook, and small crooks do big time.

    2. Re:Coolest part of the article by coliverhb · · Score: 3, Funny

      Mother Theresa was a fraud, and for that matter died after having amassed a lot of money that NEVER went to helping the poor and needy. But, yes, she was successful. Hell, she even convinced you and at least 1.166 billion other people that she was a saint!

  6. Re:Old story... by h4rr4r · · Score: 4, Funny

    A week is not old for slashdot, I can see you are new here so we can let it slide this once. In the future you should probably also not read the articles.

  7. Re:When was the last time you picked.... by LordKronos · · Score: 4, Informative

    RTFA

    "Lots of people buy lottery tickets in bulk to give away as prizes for contests," he says. He asked several Toronto retailers if they would object to him buying tickets and then exchanging the unused, unscratched tickets. "Everybody said that would be totally fine. Nobody was even a tiny bit suspicious," he says. "Why not? Because they all assumed the games are unbreakable. So what I would try to do is buy up lots of tickets, run them through my scanning machine, and then try to return the unscratched losers.

  8. Re:You don't have to be non-random for fixed winne by jschultz410 · · Score: 4, Informative

    The problem is that he reverse engineered their deterministic process for generating winners and losers and then was able to pick out the winning cards based on the partial information they revealed. The order in which they are printed doesn't really matter. Given any random subset of the cards he could pick the winners out of them at a much higher % than he should have been able to if they were actually random.

    Sounds to me like they should figure the game out in such a way that a real random number generator will generate winners and losers at the desired rates on average and then just rely on the law of averages / large numbers to give them their desired take.

    Forgot to login, sorry for the dup ... :(

  9. Why major in math? by Anonymous Coward · · Score: 4, Funny

    Because I am calling you from my boat, BITCH!

  10. He figured out the pattern from 2 tickets by mbenzi · · Score: 4, Interesting

    I read the Wired article; the amazing thing is he did this with sample size of two.

  11. Re:When was the last time you picked.... by Mistlefoot · · Score: 4, Insightful

    So:

    Step 1) Be a retailer, or get a job for a retailer, selling lottery tickets. This would get past your "there is no real way to get only the winners"
    Step 2) Take all the scratched tickets that people throw away onsite, and scan them for hints as to how to pick winners.
    Step 3) Buy a bunch of probable winners to see how accurate you are, and if you are accurate, profit.

    Now a few things come to mind.
    Many people like to buy the "new" tickets as they seem to "win" more often. This would be normal if took a few weeks for retailers to get a handle on how to pick the winners. You win more often when "chance" is in play, and less often when the probably winners have been weeded out.

    It would also explain how retailers cash a high percentage of winners, in Canada at least, were this has been in the news for the past few years.
    Here is one such article, and note, this has led to changes in Canada. Seemingly not good enough.
    http://www.canada.com/vancouversun/story.html?id=4be28910-9cec-4785-b471-f37849a29008&k=17633

  12. If you'd Read TFA ... by Ungrounded+Lightning · · Score: 4, Insightful

    How do you tell the difference between an MIT mathematician and a smart MIT mathematician? One talks to the media, the other is a millionaire.

    If you'd read the fine article, you'd have seen that he calculated how much he'd earn by using his system and how long it would take - and found that it was far lower than his consulting pay rate. So if he spent time doing it rather than his day job he'd be taking a pay cut.

    Sounds to me like a GOOD mathematician - one who applies math to ALL the aspects of the problem and comes to the right conclusion.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    1. Re:If you'd Read TFA ... by trentblase · · Score: 4, Interesting

      Of course he applied economics only halfway. He could have sold the algorithm to someone with lower opportunity cost. Someone who makes $100 a day should be willing to split the $600 with him.

  13. The flaw in the "system" by dimer0 · · Score: 3, Insightful

    After playing quite a few of these games, I have seen this pattern too. I can look at a ticket (I'm a fan of the crossword game), and look for the less-common letters, and know basically whether or not I stand a good chance of winning. The problem here though - let's say I buy 5 tickets and don't scratch them because they all appear to be losers. What gas station have you been to that will take them back, or exchange for other tickets? None. You're buying the next 5 tickets off the roll. So what if you know that 1 out of the 5 has a really good shot at winning - you already paid for the other 4 and lost.

  14. Charity by Myopic · · Score: 3, Interesting

    If I were him, I might have gone down to the local soup kitchen and told a couple homeless people about it, and given them each a few tickets to demonstrate it. That community could have benefited for a few weeks or months before the lotto figured it out.

  15. Story plagiarised from WIRED by 1u3hr · · Score: 4, Informative
    "WIRED " has an interesting story". Fixed that for you.

    Yet again, Slashdot links to some parastic site that copied the original story rather than the source: http://www.wired.com/magazine/2011/01/ff_lottery/all/1.

    1. Re:Story plagiarised from WIRED by 1u3hr · · Score: 5, Informative
      Also, this all happened eight years ago. Here's an article from 2006:

      http://www.cbc.ca/consumer/story/2006/11/21/lottery-probe.html

      Toronto statistician Mohan Srivastava also discovered a way the tickets could be decoded to predict a winner on the game "Tic Tac Toe" nearly three years ago. Srivastava would look at the numbers on the ticket, and if a sequence of numbers was lined up in tic-tac-toe fashion and were not repeated anywhere else on the ticket, it was likely a winner. "If someone explained the trick to you, I think, I actually know, a child could do it," Srivastava said. He contacted the OLG about the trend, and while the corporation recalled unsold tickets of the game, it never went public with the information.