Lottery scam investigation comes to Tennessee

May 11, 2016, 7:56 am (39 comments)

Tennessee Lottery

Includes video report

NASHVILLE, Tenn. — The Tennessee Education Lottery is cooperating with investigators as they look into one of the most elaborate lottery scams in U.S. history.

The scam was the work of Eddie Tipton, a former security director with the Multi-State Lottery Association.

Tipton has been convicted of fraud and sentenced to ten years in prison.

But his brother and his old college roommate were recently arrested as the jackpot fixing investigation expanded.

Prosecutors in Iowa say surveillance video from an Iowa convenience store shows Eddie Tipton buying a winning ticket worth $14 million back in 2010.

The Assistant Director of Iowa's Division of Criminal Investigation (DCI) said the scam sounds like something you would see in a movie.

"This new to me in my career. I have not seen anything like this," David Jobes said.

Investigators say Tipton used his security clearance to install software on lottery computers.

The software enabled him to manipulate winning lottery numbers in at least six states.

"We continue to work on this case. The agents keep looking at jackpots in different locations," Jobe said.

That includes Tennessee.

The President and CEO of the Tennessee Education Lottery, Rebecca Hargrove, confirmed they provided the names of those who won certain lottery games to investigators.

They are reviewing those names to see if winners have ties to Tipton.

"We feel as confident as we possibly can that Tennessee was not impacted," Hargrove said.

But Tennessee lottery officials confirmed to Newschannel 5 Investigates that Tipton visited the offices of the Tennessee Lottery back in 2004 while he worked for the Multi-State Lottery Association.

"He had no access what-so-ever to our facilities since we started using random number generated drawings," Hargrove said.

Investigators are not focused on games like Mega-millions or Powerball because they use ball drops to pick winning numbers.

They are focused on games like Hot Lotto which use computers — called random number generators — to pick winners.

Tipton's brother actually won jackpots in Oklahoma and Colorado. An investigator was asked could anyone be that lucky?

David Jobe responded, "I wouldn't think so. I know I'm not."

Hargrove said the timing is critical — the state didn't start offering Hot Lotto until 2013 — after Tipton had been caught buying that ticket in Iowa and his scheme began to unravel.

She doubts Tennessee will be impacted by the lottery scam.

"We didn't use any random number generators from the gentleman who provided them," Hargrove said. "Our random number generators have never come from that source."

VIDEO: Watch the report

Timeline of the biggest crime in US lottery history

The following is a compilation of Lottery Post news coverage chronicling the Hot Lotto mystery and subsequently discovered crime.

We start the timeline with a news story indicating that only 3 months remained for the $16 million Hot Lotto jackpot to be claimed.

NewsChannel5, Lottery Post Staff

Comments

mypiemaster's avatarmypiemaster

Boy, this stuff is turning into a virus and the Dragon Lady thinks she is immune.

destinycreation

The GOOD THING about this Nationwide RNG Investigation, is that it EXPOSES the Obvious Security Vulnerabilities and FRAUD that can happen in the game of Lottery using RNG drawings rather than Mechanical Ball Drawings.

FRAUD is EASIER for Hackers with Computer Generated RNG lottery games.

haymaker's avatarhaymaker

So it seems we are just scratching the surface, hopefully this is the beginning of the end for RNG !

Todd's avatarTodd

Quote: Originally posted by haymaker on May 11, 2016

So it seems we are just scratching the surface, hopefully this is the beginning of the end for RNG !

I'm with you: I wish this was the beginning of the end for RNG.  Unfortunately it doesn't appear that the states are getting it. 

Did you watch the video and notice Ms. Hargrove laughingly dismiss the possibility that the Tennessee Lottery's RNG was affected?  Rather than taking a serious tone and assuring people that the lottery is carefully investigating everything, she nearly does an eyeroll as she blows off the reporter's question.

For the life of me I can't understand the lotteries' need to cling to computerized drawings as if they are the lifeblood of the games, when in fact the opposite is true.  I can see how people could conclude that vendors of these drawing machines are "somehow" persuading lotteries to stick with them.

The Texas Lottery demonstrates on a daily basis what I consider to be some of the best, most transparent, lottery drawings, and they are done with modern robotic camera technology that minimizes the costs involved.  I can tell you that if I ran a lottery, I would absolutely adopt their approach.  Too bad the computerized states refuse.

music*'s avatarmusic*

I Agree! with Todd.  People need to vote with their dollars and their voices. Stop playing RNG games and let your legislature know why.

noise-gate

You got to love Priscilla's answer: "We did not get our rng from that guy."

Todd's avatarTodd

Quote: Originally posted by noise-gate on May 11, 2016

You got to love Priscilla's answer: "We did not get our rng from that guy."

Yeah, as if that is the only computerized drawing system on Earth that could have been hacked.

noise-gate

Quote: Originally posted by Todd on May 11, 2016

Yeah, as if that is the only computerized drawing system on Earth that could have been hacked.

My thought exactly Todd.

Ron5995

Quote: Originally posted by Todd on May 11, 2016

I'm with you: I wish this was the beginning of the end for RNG.  Unfortunately it doesn't appear that the states are getting it. 

Did you watch the video and notice Ms. Hargrove laughingly dismiss the possibility that the Tennessee Lottery's RNG was affected?  Rather than taking a serious tone and assuring people that the lottery is carefully investigating everything, she nearly does an eyeroll as she blows off the reporter's question.

For the life of me I can't understand the lotteries' need to cling to computerized drawings as if they are the lifeblood of the games, when in fact the opposite is true.  I can see how people could conclude that vendors of these drawing machines are "somehow" persuading lotteries to stick with them.

The Texas Lottery demonstrates on a daily basis what I consider to be some of the best, most transparent, lottery drawings, and they are done with modern robotic camera technology that minimizes the costs involved.  I can tell you that if I ran a lottery, I would absolutely adopt their approach.  Too bad the computerized states refuse.

It's mystifying, especially given the national news coverage the Hot Lotto RNG hacking scandal has received. And yet Hot Lotto is still associated with MUSL, still uses computer RNG, and many are still buying! Crazy.

Personally, I'd never buy any MUSL associated RNG game, such as 2x2, Hot Lotto, etc. Heck, I'm leery of even buying a Powerball or Mega Millions ticket these days, despite being ball drawn, unless the jackpot is record breaking high.

Unless numbers sales drop sharply, it's likely many lotteries, such as Tennessee Lottery, will downplay the hacking issues, and continue / expand the use of RNG.

I couldn't find past sales data on the Hot Lotto page. Be interested in knowing whether Hot Lotto ticket sales dropped much / overall sales history ... that data would likely shed much light on the lack of concern regarding RNG / hacking by most lotteries. If Hot Lotto sales, long-term, weren't affected much, that could explain it.

Stack47

Hargrove said the timing is critical — the state didn't start offering Hot Lotto until 2013 — after Tipton had been caught buying that ticket in Iowa and his scheme began to unravel.

Then why is MUSL wasting time investigating Tennessee Hot Lotto winners?

Tipton's brother actually won jackpots in Oklahoma and Colorado.

But can they prove Eddie Tipton rigged those drawings?

RJOh's avatarRJOh

Quote: Originally posted by Stack47 on May 11, 2016

Hargrove said the timing is critical — the state didn't start offering Hot Lotto until 2013 — after Tipton had been caught buying that ticket in Iowa and his scheme began to unravel.

Then why is MUSL wasting time investigating Tennessee Hot Lotto winners?

Tipton's brother actually won jackpots in Oklahoma and Colorado.

But can they prove Eddie Tipton rigged those drawings?

Sounds like anyone who wins a jackpot of a MUSL game is a suspect because they have accomplished the impossible.

bobby623's avatarbobby623
IMHO, I doubt that any lottery official who went to great lengths to convince the politicians that they would have more money to spend if they dumped the ball machines is going to admit to being wrong.
Lottery directors are seen as financial wizards who don't make mistakes.
Switching back to ball machines would require funds that the political class is not about to give up without a fight. 
A recommendation that players stop buying tickets is ludicrous. There is no way on earth or Hell that such an effort be seriously organized and put into effect.
Like it or not, the RNG computers that are now in place are here to stay.
rca1952

No NoAll said and done, but why isn't the third person's face, The Collage Room Mate, posted for all to see!!! Sounds fishy to me...

Technics

I just wish people were sharp enough to fall back from playing in cases where these scams come out. You can get the results you want simply by NOT funding it by playing. Don't play and they will make changes. People's greed and addictions to the hope of winning have a grip on their logical thinking. Confused

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