Four years after drawing fiasco, Tenn. Lottery settles with tech firms

Dec 17, 2011, 9:22 am (23 comments)

Tennessee Lottery

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.

Also:  All Tennessee Lottery News Stories

Thanks to Helen for the tip.

Tennessean, Lottery Post Staff

Comments

Todd's avatarTodd

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.

duckman's avatarduckman

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.

RJOh's avatarRJOh

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.

pcurtis's avatarpcurtis

Can't wait for ridge to post on this.

Tear them them up ridge.

gra8*2win's avatargra8*2win

Quote: Originally posted by pcurtis on Dec 17, 2011

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.

TnTicketlosers's avatarTnTicketlosers

I dont believe none of their payouts or wins.After 5 years of studing I should get aleast 1 hit a year.

TnTicketlosers's avatarTnTicketlosers

Does this mean I get a refund on all my losing tickets?

BevsPicks2

I don't typically comment on an article unless it is of extreme value.  I have one commnet.

SMH Thinking of...

pcurtis's avatarpcurtis

Quote: Originally posted by TnTicketlosers on Dec 17, 2011

Does this mean I get a refund on all my losing tickets?

What about the ones that throwed their tickets away?

They are the ones that got robbed.

Todd's avatarTodd

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.)

temptustoo's avatartemptustoo

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..

mcginnin56

Quote: Originally posted by Todd on Dec 17, 2011

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.

I Agree!I Agree!I Agree!!!!

jojosurf's avatarjojosurf

I Agree! 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

TheOtherOne's avatarTheOtherOne

Quote: Originally posted by duckman on Dec 17, 2011

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.

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!

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