MUSL seeks to dismiss lawsuit over rigged jackpot

Apr 1, 2016, 10:21 am (37 comments)

Insider Buzz

A group of state lotteries has asked a judge to dismiss a lawsuit filed by a jackpot winner who argues he was shortchanged by millions of dollars because the prior drawing was rigged by one of its employees.

In court documents filed this week, the Multi-State Lottery Association argued that Iowa resident Larry Dawson does not have legal standing to sue because his "claimed injury is merely speculative and hypothetical, and therefore cannot be redressed."

Dawson, of Webster City, filed the lawsuit in February. It is the first stemming from jackpot-fixing allegations against former lottery association security director Eddie Tipton.

(See First lawsuit in state lottery-fixing scandal seeks millions, Lottery Post, Feb. 4, 2016.)

Tipton has been convicted of rigging a $16.5 million jackpot in December 2010 by tampering with the computer that generated Hot Lotto numbers at the Urbandale, Iowa-based association, then purchasing a ticket with the winning six-number combination himself. That money was returned to the 16 states that participate in Hot Lotto when associates of Tipton tried, but ultimately failed, to claim the prize a year later.

After the rigged jackpot, the Hot Lotto prize reset to its $1 million base. Dawson won the game's next jackpot, worth $9 million, in May 2011. He argues that, under the rules of the game, the money from the rigged drawing should have rolled over and created a $25.5 million pool for the jackpot he won rather than being shared by the states as an unclaimed prize.

In a legal brief, the association argued that Dawson's claim that the prize money would have continued to carry over until he won is "complete speculation and conjecture."

"Had the December 29, 2010 Hot Lotto game not been allegedly rigged, different numbers would have been drawn on that date and may have resulted in a different jackpot winner," association attorneys wrote. "Moreover, had the jackpot continued to progressively increase following the December 29, 2010 drawing, the player pool for all drawings would have increased as well, resulting in more number combinations being purchased for each drawing, until a jackpot winner was chosen."

Therefore, the likelihood of someone winning the jackpot before Dawson would have increased and the $9 million jackpot he won "may very well have been less," they wrote.

One of Dawson's attorneys, Nicholas Mauro, said Thursday that Dawson's injuries weren't hypothetical.

"There is nothing speculative about the fact the December 2010 drawing was rigged, or the fact Mr. Dawson was the next legitimate winner," he said. "According to the rules of the game — in which the lottery asks the public to put its faith — his jackpot should have included the December 29, 2010, prize money."

AP, Lottery Post Staff

Comments

noise-gate

Nothing ventured- nothing gained.

sully16's avatarsully16

See all the problems you caused Eddie! Chair

Thegreenpirate

Eddie proved that the musl lotteries are #fake

TnTicketlosers's avatarTnTicketlosers

Yea sometime when get a few minutes go to Tn lottery .....look at all the $5000.oo payouts on pick 4 ...but they say ours is generated...yea right.

Lottery Playa

"See all the problems you caused Eddie! Chair"

I Agree!

LMAO.... Loved your post!

Ron5995

While it's debatable whether that jackpot winner was short-changed, players who bought tickets in the fixed drawings certainly were! Players should get refunded and/or receive coupons for future play.

Though, that may be impractical due to many players tossing their tickets. Thus, the next best thing would be all participating Hot Lotto lottery jurisdictions offering millions of dollars in free added play for players. Ie. Buy 1 $5 instant ticket, get 1 free, etc. Basically, the participating lotteries should make it right for players and not profit from the rigged drawings. That means giving back all the wagers from the rigged drawings plus the forfeited jackpot funds too via extra prizes / coupons, etc - the lottery jurisdictions shouldn't be getting any of that money, players should!

Why any sane player would buy a Hot Lotto ticket is beyond be, but many still do. Heck, in my view, all regional RNG games, especially those involving MUSL, are suspect at this point, and best avoided; played sparingly with the understanding that there's a real probability of the game being fixed.

Fortunately, some regional games don't use RNG for drawings, such as Cash 4 Life  - balls are used, and is telecast / webcast, from my understanding, in near real-time. Not sure about Lucky for Life, but may be similar. So there are alternatives to Hot Lotto that use tried and true ball drawings. All lottery numbers games should.

spartan1707's avatarspartan1707

So Glad this Lawsuit is bringing to light the fact that he is right. The game was rigged and they went after the person and now someone is going after them. They lied got caught and now they are looking for the Judge to help hid the Facts!!!

Mr E

What's going to happen to the jackpot money? I think they should add it to the current Hot Lotto jackpot.

Stack47

Quote: Originally posted by Mr E on Apr 1, 2016

What's going to happen to the jackpot money? I think they should add it to the current Hot Lotto jackpot.

The money was probably returned to the participating states, but Larry Dawson is arguing because he was the next jackpot winner, he should get the money. The MUSL is arguing Dawson does not have legal standing to sue because his "claimed injury is merely speculative and hypothetical, and therefore cannot be redressed."

It's easy to say that Dawson was "merely speculating" because every player that buys a ticket in any lottery game is speculating they will win the jackpot. MUSL proved the 1/29/2010 drawing was rigged and they are saying it was possible for other players to choose Tipton's numbers and still had a chance to win that jackpot.

elios311

I don't think that Dawson should get more money.

Had the lottery not been rigged, different numbers would have been drawn on later draws and he probably wouldn't win anything. So ironically, Dawson actually has to thank Tipton for inadvertently making him win.

What the lottery should pay however, is a refund on every loosing lottery ticket that they sold for rigged draw. Rules of the game state that the draws are random, therefore, the lottery house was in violation of its own rules. People didn't get what they paid for, so anyone who can prove that they bought a loosing ticket for the rigged draw should get a refund with interest.

KY Floyd's avatarKY Floyd

"Had the December 29, 2010 Hot Lotto game not been allegedly rigged ..."

So it's safe to believe that the official position of MUSL is that Tipton isn't guilty beyond a reasonable doubt? I'm sure his attorneys will be very glad to hear that.

JAMORA's avatarJAMORA

Quote: Originally posted by Stack47 on Apr 1, 2016

The money was probably returned to the participating states, but Larry Dawson is arguing because he was the next jackpot winner, he should get the money. The MUSL is arguing Dawson does not have legal standing to sue because his "claimed injury is merely speculative and hypothetical, and therefore cannot be redressed."

It's easy to say that Dawson was "merely speculating" because every player that buys a ticket in any lottery game is speculating they will win the jackpot. MUSL proved the 1/29/2010 drawing was rigged and they are saying it was possible for other players to choose Tipton's numbers and still had a chance to win that jackpot.

If the only winning ticket was produced by the Tipton scandal, then yes it would have rolled over, and he is due the amount it was at and the roll over...Tipton isn't the only crook here....

Did anyone else have a winning ticket? I don't see that....

DELotteryPlyr's avatarDELotteryPlyr

This is really good that they are bringing this suit.  I helps show the implications of what Tipton did.  The more legal eyes we can have on this case (Tipton's) the better. 

It also shows every other lottery what happens if they allow a Tipton to infect them. 

I would like to see the court award him the money! That would REALLY make the lottery's stand up and listen. 

mypiemaster's avatarmypiemaster

Just pay the man and quit your crying.

Subscribe to this news story