Podcast Summary: The Journal – "How ‘The Joker’ Rigged the Texas Lottery"
Introduction In the May 16, 2025 episode of The Journal, a collaborative podcast by The Wall Street Journal and Gimlet, hosts Ryan Knutson and Jessica Mendoza delve into an extraordinary heist that shook Texas—the rigging of the Texas Lottery by a notorious figure known as "The Joker." This detailed exploration uncovers the intricate methods employed by professional gamblers to manipulate a major state lottery, sparking outrage and leading to significant regulatory changes.
Unveiling the Heist The story begins with Brad Reagan, a journalist originally from Texas now based in London, who brings attention to a seemingly ordinary Texas Lottery drawing in the spring of 2023. On April 22, 2023, a jackpot of nearly $95 million went unclaimed for almost two months. The breakthrough came when a New Jersey lawyer filed a claim on behalf of a client identified as "rook tx," who wished to remain anonymous. This claim unveiled connections to a global syndicate of professional gamblers, orchestrated by a mastermind in London and backed by the enigmatic figure, The Joker.
The Mastermind: Bernard Marentelli and The Joker At the heart of this scheme is Bernard Marentelli, the analytical mind behind White Swan Data—a group specializing in identifying global gambling opportunities through data analysis. Marentelli, described as a "numbers guy," combined his expertise with financial acumen to exploit the Texas Lottery's vulnerabilities. Partnering with Zelko Ronagai, better known as The Joker, a legend in the gambling world from Tasmania, they formed a formidable duo. As Brad Reagan explains, “Marentelli looks for the opportunities. The Joker is the money man” (07:11).
Strategizing the Rigging Marentelli and The Joker identified the Texas Lottery as a prime target due to its ballooning jackpot and decreased ticket sales. With 25.8 million number combinations, they devised a plan to purchase nearly all possible tickets, investing approximately $25 million. Timing was crucial, as the jackpot needed to reach a point where their investment would yield a substantial return. On the Saturday drawing, after a series of strategic moves, they managed to acquire 99.3% of all tickets, ensuring an overwhelming advantage (14:08).
Execution and Secrecy To execute their plan, the duo collaborated with Lottery.com, a struggling ticket-purchasing company. Securing access to official ticket printing terminals from the Texas Lottery Commission, they set up operations in unconventional locations like former dentist's offices and warehouses. The operation was intensive, running around the clock with even family members assisting in printing and filing tickets. As Brad Reagan notes, “They were able to get dozens of these ticket printing machines… It's really an around the clock operation” (13:03).
The Jackpot Win and Aftermath On drawing day, Marentelli and The Joker held sole possession of the winning ticket, allowing them to claim the $60 million prize before taxes. However, their success was short-lived as suspicions arose due to the sheer improbability of their victory. Investigations launched by the Texas Attorney General and the involvement of the Texas Rangers revealed the sophisticated nature of the scheme, leading to widespread public outrage and political fallout. The Lieutenant Governor labeled it "the biggest theft in the history of Texas" (02:56).
Regulatory Repercussions The fallout from the heist prompted multiple investigations, lawsuits, and hearings in the Texas State Senate. In a swift legislative response, the Texas Senate unanimously voted to abolish the Texas Lottery Commission, transferring oversight to a different regulatory body to restore public trust. The Texas Lottery Commission acknowledged the need for change, stating, “the crew's mass ticket buying had compromised public perception about fairness” (17:13).
Analysis and Insights Brad Reagan draws parallels between the actions of Marentelli and The Joker with Wall Street practices, highlighting how both operate by identifying and exploiting mispriced opportunities for profit. “These guys are looking to find mispriced opportunities or opportunities in the market that can be exploited. That's all this” (18:12). This comparison underscores the sophisticated strategies employed in both finance and gambling to gain a competitive edge, albeit within different regulatory frameworks.
Conclusion The Journal’s episode on “How ‘The Joker’ Rigged the Texas Lottery” offers a compelling narrative of strategic planning, innovative exploitation of data, and the profound impact of such schemes on public trust and regulatory policies. Through meticulous research and insightful interviews, the podcast illuminates the fine line between clever strategy and unethical manipulation, leaving listeners to ponder the implications of such actions in both the gambling and financial worlds.
Notable Quotes:
- Brad Reagan on Marentelli and The Joker’s roles: “Marentelli looks for the opportunities. The Joker is the money man” (07:11).
- Brad Reagan on the operation’s intensity: “It's really an around the clock operation” (13:03).
- Lieutenant Governor’s statement on the heist: “the biggest theft in the history of Texas” (02:56).
- Brad Reagan on exploiting market opportunities: “These guys are looking to find mispriced opportunities or opportunities in the market that can be exploited. That's all this” (18:12).
Production Credits The Journal episode features additional reporting by Joe Wallace and Catherine Sayre, with production by Katherine Brewer, Pia Gadkari, and a dedicated team ensuring a comprehensive and engaging storytelling experience.
This summary is based on the transcript provided and aims to capture the essence and key details of the podcast episode for those who have not listened to it.