I don't understand why the lottery commission would know and not stop this. If they are guaranteed to win I think that is the same thing as the state have a guaranteed loss.
Not really. The guaranteed wins (presumably done by buying enough tickets to cover a large proportion of the available number space) would be taken at the expense of either any coincidental winners or at the expense of the rollover.
Lotteries are designed to take their cut from the tickets bought - some proportion of the money from tickets then goes to the prize pot. More tickets sold means more money for the lottery organisation, regardless of who buys those tickets.
So the loser in this case was the "lucky" lottery player, who would have found that, had they won, they had to share their prize with these guys.
But just like every casino, the house always wins. The more tickets sold, the more money the lottery makes. This is why despite knowing the flaws in the system, it doesn't get fixed, they don't care... in fact, it's in their favor to ignore it because those attempting to exploit the flaw only line the lottery's pockets more. It's more profitable for them to ignore it and hope that as little ruckus as possible draws attention to this corruption.
