The Tennessee Education Lottery Corp. has received nearly $1 million from a pair of technology companies it blamed for software glitches that resulted in the sale of about $2 million worth of unwinnable tickets in 2007.
(See Tennessee Lottery computerized drawings flawed since inception, Lottery Post, Aug. 21, 2007.)
The computer program that Smartplay International and Gaming Laboratories International came up with for games such as Cash 3 and Cash 4 was flawed and resulted in thousands of unwinnable tickets being sold to state residents. The program did not allow duplicate digits to appear, and gamblers who picked duplicate digits could not win.
The lottery gave refunds to those who bought unwinnable tickets and sued the software companies for damages in federal court in October 2008. The case was settled last week with the companies paying the state lottery a combined $900,000.
"We're delighted the matter is resolved," said Aubrey Harwell Jr., one of the attorneys who represented the lottery in the lawsuit.
Officials and attorneys for Smartplay and Gaming Laboratories did not respond to multiple requests for comment. The companies had fought to keep the settlement confidential even though the lottery is a quasi-governmental entity subject to open records laws.
Wanda Wilson, executive vice president and general counsel for the Tennessee Education Lottery Association, said the settlement money will be added to proceeds used to pay for scholarships and after-school programs across the state this year.
Last year, the lottery spent a record $293.5 million on its education programs and is expected to set another record this year. The lottery had a reserve of $364 million as of June 30.
No effect on scholarship cuts
Last month, lawmakers hoping to stabilize the lottery fund approved a plan that would cut in half the scholarships that go to students on the cusp of qualifying for the lottery's HOPE scholarships and Aspire grants.
Wilson said the $900,000 settlement won't influence those discussions.
"This one-time settlement amount, while welcome and headed for good use, will only modestly impact these overall figures," she said.
A chronology of Tennessee Lottery computerized drawings
Below is a sampling of news stories appearing at Lottery Post during the pivotal period of time when the Tennessee Lottery switched to computerized drawings. In many respects, the lottery has not fully recovered since that fateful decision.
- Tennessee Lottery threatens to go computerized
(Jul 16, 2007) - Tenn. Lottery players complaining over switch from numbered balls
(Aug 8, 2007) - Tennessee Lottery computerized drawings flawed since inception
(Aug 21, 2007) - Tennessee Lottery glitch shuts out players
(Aug 22, 2007) - Players warned lottery about tickets flaw
(Aug 23, 2007) - Tenn Lottery spokeswoman said no chance of drawing error
(Aug 23, 2007) - Engineer reported bad Tenn. Lottery computerized draws
(Aug 24, 2007) - Official wants fraud probe of Tennessee Lottery (Aug 28, 2007)
- Tenn. Lottery says duplicate numbers drawn were legit; can we be sure?
(Aug 31, 2007) - Newspaper Editorial: Biggest error was switching to computerized draws
(Sep 2, 2007) - Tenn. Lottery CEO breaks silence on drawing errors
(Sep 2, 2007) - Lottery 'glitch' leaves players suspicious
(Sep 2, 2007) - Tenn. Lottery: Curse of the computerized drawings?
(Sep 13, 2007)
Also: All Tennessee Lottery News Stories
Thanks to Helen for the tip.
I remember posting about hidden errors that can occur without anybody noticing WAY Before these drawing errors were ever confirmed. For example, here's a post I made on Aug. 8, 2007 that talks about hidden errors in computerized drawings that can go on for a long time before anyone notices.
There is absolutely no legitimate reason for a lottery to go to computerized drawings, other than their perception that it will be "easier" for them to manage. Computerized drawings are a huge mistake, especially when it comes to the need to bring in huge sums of money every year based on player confidence and trust.
Two words: Inadequate Testing
Any time new or updated software is released, thorough testing in a real time environment is mandatory. If they would have run adequate test runs they would have discovered the problem. As is often the case with modern software projects, poor quality control and inadequate testing results in unforseen errors that should have be caught and fixed before release.
From some of the posts I read at that time, I doubt if everyone who bought doubles and triples was aware that the state was offering to give them their money back.
Can't wait for ridge to post on this.
Tear them them up ridge.
Tennessee seems to be one of the worst states for random draws. i wonder how many other states have had this
problem.
I dont believe none of their payouts or wins.After 5 years of studing I should get aleast 1 hit a year.
Does this mean I get a refund on all my losing tickets?
I don't typically comment on an article unless it is of extreme value. I have one commnet.
SMH
What about the ones that throwed their tickets away?
They are the ones that got robbed.
The lottery already did their little "giveback" to lottery players who got robbed during that period: https://www.lotterypost.com/news/165397
If you check the middle of that article, you will see the amounts the lottery "gave back" to players.
Remember, this event took place 4 years ago.
(Edit: I guess I can't count very well -- I changed the article headline to say "FOUR" years ago, not five. Duh.)
well i was there during that time and unless you kept your tickets you got nothing.. I think Tenn.. got way too much money for the money that they gave back..
!!!
PA IS RIGHT UP THERE WITH THEM ON THE RESULT'S WE HAD ON DAY DRAWS CHEATING THE PLAYER'S CONSTANT REPEAT'S DAY AND NIGHT
I think you hit the nail right on the head.
I wasn't playing any cash 3 or 4 then -- or now, really so I don't know all the details but it's sounds like they straight didn't give a flock!