How ‘The Joker’ Rigged the Texas Lottery

Summary

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.

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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.

Transcript

[Jessica Mendoza]

Our colleague, Brad Reagan grew up in Texas.

[Brad Reagan]

I live in London now, but I'm originally from Texas. My family's still in Texas. All my friends, or not all my friends, but a lot of my friends are in Texas.

[Jessica Mendoza]

Brad tracks the news in his home state. And recently a story caught his eye. A heist story. Yeah, we love a heist story, especially here at the Journal podcast. We love it.

[Brad Reagan]

Heist stories are my favorite stories. That's exactly how we were looking at this from the beginning.

[Jessica Mendoza]

And this heist story involved a lottery, the Texas Lottery, specifically a drawing that happened in the spring of 2023.

[Lottery Announcer]

Get ready to play the games of Texas for Saturday, April 22.

[Brad Reagan]

On the night of the drawing, they do it a little bit after 10 o' clock, and it's kind of looks like almost like a cable access show.

[Lottery Announcer]

Tonight's Lotto Texas jackpot is an estimated $95 million.

[Brad Reagan]

There's a woman and she's like standing next to like what, this clear ball with basically ping pong balls just bouncing around like a popcorn machine or something. The first number is, and then one of the balls will pop up and so you can see that number 52. And the drama kind of builds and it's like one number and the second number is 32 numbers, three numbers.

[Lottery Announcer]

That third number is five.

[Brad Reagan]

And then eventually you've got all six numbers there.

[Lottery Announcer]

52, 35, 18, 29, and the six and final number three.

[Jessica Mendoza]

But for all almost two months, the jackpot, almost $100 million went unclaimed.

[Brad Reagan]

And then this lawyer out of New Jersey files a claim for the jackpot on behalf of his client that is described as rook tx.

[Jessica Mendoza]

Huh?

[Brad Reagan]

And according to Texas Lottery rules, the winner has asked to remain anonymous, which is acceptable. H. And so this lawyer says, here's the winning ticket. My client wants to remain anonymous. Texas Lottery says, great, here's your money.

[Jessica Mendoza]

Eventually, the identities of the winners were revealed. And it turns out they were connected to a crew of professional gamblers, a transatlantic syndicate headed by a mastermind in London, and a mysterious backer who went by the nickname the Joker. When the scheme was exposed, it caused a Texas sized uproar.

[Brad Reagan]

The Lieutenant Governor of Texas called it something like the biggest theft in the history of Texas, which seems a bit hyperbolic, but I think captures the anger.

[Jessica Mendoza]

Welcome to the Journal, our show about money, business and power. I'm Jessica Mendoza. It's Friday, May 16th. Coming up on the show, how the Joker took down the Texas Lottery. Where does this story start?

[Brad Reagan]

As best we can understand it, the Story starts in. In London at a shop called White Swan Data, which is an organization that looks for gambling opportunities around the world.

[Jessica Mendoza]

White Swan is basically a group of data analysts who sell their betting advice to professional gamblers.

[Brad Reagan]

We've heard stories that these guys will hear reports of a roulette wheel that's slightly out of balance in some obscure country, and they will just go there and gamble and gamble and gamble because they. They're just looking for that slight edge. These guys like to operate in the shadows, like, they. They don't want competition, they don't want casinos and racetracks to know what they're doing because the odds will then shift against them. So they often disguise their activities or they try to stay under the radar. So there's a lot about them that is not known.

[Jessica Mendoza]

Behind White Swan is a man named Bernard Marentelli. He's a numbers guy, someone who makes his calls based on algorithms and odds.

[Brad Reagan]

He used to work for a big investment bank, did some other things, but he's always been a gambler. His dad was a gambler. He's always been interested in gambling. And one of the things we learned about him is that his father instilled in him at an early age. You only gamble when you have an edge.

[Jessica Mendoza]

So he's gambling, but he's also, like, strategizing.

[Brad Reagan]

Exactly. He's not only strategizing, he's crunching the numbers in a very methodical way. It really is more like Wall street traders approach buying a stock. It's like they want to know that the asset is underpriced or mispriced in a way that if they buy it, more often than not, they'll come out ahead.

[Jessica Mendoza]

Marentelli is looking around for something that gives him an advantage. And one day, something across the pond grabs his attention. The Texas lottery. No one had won for a while, so the jackpot was ballooning, and not many people had bought tickets, so the odds look good. And this is when Marantelli contacts his partner.

[Brad Reagan]

His partner is this guy Zelko Ronagai. Maybe because his name's a little bit hard to pronounce, he's often gone by this nickname, the Joker. The Joker's, to me, the most fascinating part of this story. I mean, he is a legend in the gambling world. Some people over the years have called him the Loch Ness Monster because he's so rarely photographed.

[Jessica Mendoza]

Wow.

[Brad Reagan]

He's one of these characters that people know about, but few people know what he actually looks like. He's from Tasmania originally, which I think adds an Extra layer of intrigue.

[Jessica Mendoza]

Back in the 80s, the Joker dropped out of college and started gambling full time. He pooled money to play the horses, slots, and keno. And today, the Joker and his business partners bet an estimated $10 billion a year. What is the relationship between Marentelli and the joker?

[Brad Reagan]

One fairly simplistic way to say it is Marentelli looks for the opportunities. The Joker is the money man.

[Jessica Mendoza]

So. So I'm thinking, like, Ocean's eleven here. So would Marantelli sort of be the Danny ocean, George Clooney character? And Joker's like Ruben with the robe and the money in the background?

[Brad Reagan]

I think that's a pretty good comparison.

[Jessica Mendoza]

By the spring of 2023, the dynamic duo seemed ready to take on the Texas lottery. Marentelli had figured out the method. The Joker had the money to front the operation, and their plan was actually really simple. What gives you the best odds to win the lottery? Buy as many tickets as you can. And for this lottery, that actually seemed possible.

[Brad Reagan]

So sometimes people are rushing to the convenience stores. There's lines around the block. Everybody's buying lottery tickets. In this case, they realized that wasn't happening. And the reason that's important is, is because to maintain their profit margins, they want to be the only people that win, right?

[Jessica Mendoza]

They don't want to split the pot with anybody else.

[Brad Reagan]

They don't want to split the jackpot.

[Jessica Mendoza]

There were 25.8 million number combinations for the drawing. So to tip the scales in their favor, Marantelli and the joker plan to buy almost all the tickets at a dollar a pop, so around $25 million worth. But the timing was key. Marentelli and the Joker needed to wait until the jackpot was big enough for their gamble to pay off. Jackpot draws in the Texas lottery are three times a week. Mondays, Wednesdays, and Saturdays. And on Wednesday, April 19, no one had the winning numbers. So the cash rolled over into the next drawing on Saturday. At that point, what was the jackpot?

[Brad Reagan]

The total prize was getting close to 90 million.

[Jessica Mendoza]

That's when the crew knew they needed to spring into action.

[Brad Reagan]

They wanted to do it as quickly as they could because there's obviously the risk that someone could win if they waited till the next draw. There was also the talk we've heard that other big pro gambling outfits were circling and had seen this lottery. They're not the only ones out there who were kind of watching the jackpot creep higher and running the numbers. And so I think they felt like there was a little bit of competition. And if they don't strike now. Someone else could get to it first.

[Jessica Mendoza]

It was was go time. That's after the break.

[Public Service Announcement Speaker]

Talking about guns with others might not always feel comfortable, but it could save a life. Here's a way to start a conversation. Your family is going over to your neighbor's home for dinner for the first time. How would you ask if there are any unlocked guns in the home?

[Jessica Mendoza]

Hey.

[Public Service Announcement Speaker]

Hey. We're so excited for tonight. Before we come over, though, may I ask if there are any unlocked guns in your home?

[Jessica Mendoza]

Our guns are stored securely locked in a safe that the kids can't access.

[Public Service Announcement Speaker]

Awesome.

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[Jessica Mendoza]

The following story about the Texas Lottery is based on interviews with people who were directly involved in the Texas operation or in contact with those who were. The Wall Street Journal also reviewed photos and video of the operation, emails and messages, and documentation of subsequent hearings in the Texas Senate. In order to collect a prize from the Texas Lottery, Marantelli's team needed to have a winning ticket that was printed.

[Brad Reagan]

They had to get from London to Texas and execute this plan to buy and print all of these lottery tickets before the drawing.

[Jessica Mendoza]

To get all those tickets printed in time, Marentelli and the Joker needed help. So Marantelli's team made a key connection on the ground in Texas with a startup called Lottery.com. it's a ticket purchasing company, one that was on the ropes.

[Brad Reagan]

Lottery.com was having a lot of problems in its own business, and the lottery.com executives saw this as a huge business opportunity. These Europeans were going to come in and spend $25 million buying tickets. They saw that as a business opportunity because they get 5% of the sales. There's a little bit of an air of desperation in some of the emails.

[Jessica Mendoza]

Lottery.com contacted the Texas Lottery Commission and requested access to official ticket printing terminals, and apparently the commission said yes. Other lottery retailers pitched in as well.

[Brad Reagan]

They were able to get dozens of these ticket printing machines. They set them up in four locations around the state. One was a former dentist's office. One was a warehouse. So these were not glamorous locations, but they brought in rolls and rolls of paper because they have to print all these tickets.

[Jessica Mendoza]

Based on the Journal's calculations, all those terminals combined were spitting out about 100 tickets a second. So the question I feel like after talking about this strategy of getting dozens of terminals is, is that legal?

[Brad Reagan]

As best we can tell, it's 100% legal.

[Jessica Mendoza]

Wow.

[Brad Reagan]

These guys sought Permission ahead of time, and they got approval and they came in and did it.

[Jessica Mendoza]

How long did it take them to print out all those tickets?

[Brad Reagan]

I mean, it was definitely an around the clock operation, and they were bringing in more people as soon as they could find them. Our understanding is some of them brought in their children to help with the printing and the filing. It was really an around the clock operation. I mean, they really wanted this thing to work.

[Jessica Mendoza]

Was there any chance that they weren't going to win this?

[Brad Reagan]

I don't think they actually bought every single combination.

[Jessica Mendoza]

Right.

[Brad Reagan]

And one reason for that is because there are some numbers that you don't want to buy because they're so common. For example, 1, 2, 3, 4, 5, 6. Too many people guess that number. And so if you buy that lottery ticket, you would almost certainly share it with other people.

[Jessica Mendoza]

The printing spanned three full days. By the time the drawing rolled around, Marentelli's group had managed to buy 99.3% of all the tickets. In other words, the odds were overwhelmingly in their favor.

[Lottery Announcer]

Once again, those Lotto Texas numbers are 52, 35.

[Jessica Mendoza]

Marentelli and the Joker had the sole winning ticket and cashed in the jackpot before taxes. Their haul was almost $60 million. It seemed like the duo was destined to saunter off into the sunset, their pockets full. But some of the people who tracked the lottery in Texas were suspicious of this mysterious group who'd walked away with such a big prize. Eventually, journalists and state officials started doing some digging. And when it became clear that professional gamblers were involved, it set off a firestorm.

[Brad Reagan]

It really wasn't until late 2024, early this year, that people started talking about this.

[Public Service Announcement Speaker]

The state's lottery commission has come under fire over what's called.

[Brad Reagan]

And it just gathered momentum.

[Lottery Announcer]

Texas Attorney General Ken Paxton announced this morning an investigation.

[Brad Reagan]

People started getting more and more upset, and lawmakers would pile in. And then the governor of Texas jumped on and asked the Texas Rangers to investigate. The longer this goes on, the more questions come up.

[Jessica Mendoza]

There are now multiple ongoing investigations into what happened around the drawing on April 22, 2023. There have been lawsuits and hearings in the state Senate, and the head of the Texas Lottery Commission recently stepped down.

[Brad Reagan]

I think Barentelli and the Joker, as best we understand it, are trying to lay low. They gave us a statement through their lawyer saying that all rules and regulations had been followed. And as best we could tell, that is true. But, you know, as the scrutiny continues and as the political fallout plays out, it will be interesting to see if anyone tries to come after their jackpot, and also whether this becomes a fatal blow for the Texas lottery.

[Jessica Mendoza]

But, like, they got permission to use the printing terminals, right? So what's the issue?

[Brad Reagan]

I think the issue is just that to some people, it doesn't feel fair. And we've talked to some people. There's a lottery watchdog down in Texas and her position is, like, this is supposed to be for the people of Texas. It's not for outsiders to come in and steal our jackpots and take it to London or Tasmania. So I understand that anger. It does seem perhaps a little bit misplaced because these guys took advantage of the rules that were on the books.

[Jessica Mendoza]

While the Texas lottery commission had approved the use of the official printing terminals, the way the joker's crew had printed and scanned lottery tickets is in a bit of a legal gray area. The commission said that the crew's mass ticket buying had compromised public perception about fairness. It also said the request for ticket terminals complied with policy, though it had been approved by a junior employee. On Thursday, the Texas state senate unanimously voted to abolish the Texas lottery commission. The Texas lottery itself would still exist, but oversight would shift to a different regulatory body. The bill is set to go to the state house of representatives. The Texas lottery commission said that it respects the legislative process and is committed to ensuring a smooth transition. What does this story reveal, Brad? What does it show us?

[Brad Reagan]

Well, one of the things that we thought from the outset was it's the core story for the Wall street journal because one of the things we do a lot is write about how smart people solve problems. And these guys just figured out how to rig this thing and they figured out how to beat the system. And people on Wall street do it all the time. You know, that's. That's why these bankers get paid the big bucks. And these guys are in a slightly different market, but they're kind of doing the same thing.

[Jessica Mendoza]

H.

[Brad Reagan]

I know the phrase that Wall Street's just a casino gets thrown around, and I don't mean to be glib like that, but these guys are looking to find mispriced opportunities or opportunities in the market that can be exploited. That's all this.

[Jessica Mendoza]

That's all for today. Friday, May 16. The Journal is a co production of Spotify and the Wall street journal. Additional reporting in this episode by Joe Wallace and Catherine Sayre. The show is made by Katherine Brewer, Pia Gadkari, Carlos Garcia, Rachel Humphries, Sophie Codner, Ryan Knitson, Matt Kwong, Kate Linebaugh, Colin McNulty Annie Minoff, Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Allen Rodriguez Espinosa, Heather Rogers, Pierce Singhy, Jeevika Verma, Lisa Wang, Katherine Whalen, Tatiana Zamis, and me, Jessica Mendoza, with help from Trina Menino. Our engineers are Griffin Tanner, Nathan Singapak and Peter Leonard. Our theme music is by so Wiley. Additional music this week from Peter Leonard, Bobby Lord, Emma Munger, so Wiley and Blue Dot Sessions. Fact checking by Mary Mathis and Kate Gallagher. Thanks for listening. See you on Monday.