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.
- Deadline for claiming $16.5M Hot Lotto jackpot nears, Sep. 21, 2011
- Unclaimed Iowa lottery jackpot to expire Dec. 29, Dec. 1, 2011
- Iowa $16.5M Hot Lotto winner claims prize with two hours to spare, Dec. 29, 2011
- Iowa Lottery security chief bent on determining identity of jackpot winner, Jan. 10, 2012
- NY lawyer in lottery mystery travels to Iowa this week, Jan. 17, 2012
- Iowa Lottery security chief to grill NY lawyer over Hot Lotto ticket, Jan. 17, 2012
- Representative of Hot Lotto winner named in lawsuit, Jan. 20, 2012
- Hot Lotto trust representative won't name winner, Jan. 20, 2012
- Iowa Lottery threatens to deny jackpot payout if winner stays anonymous, Jan. 23, 2012
- Lawyer gives up $14 million Iowa lottery ticket claim, Jan. 26, 2012
- $14.3 million Hot Lotto prize claim withdrawn, Jan. 27, 2012
- Iowa Legislators satisfied with Lottery's handling of mystery jackpot winner, Feb. 1, 2012
- Iowa Lottery to give away millions from jackpot mystery, Feb. 26, 2012
- Iowa Lottery director: 50-50 that Hot Lotto mystery will be solved, Aug. 9, 2012
- Iowa officials trying to solve lotto mystery, may release surveillance video, Aug. 19, 2012
- 1 year later, Iowa Lottery still hunting for suspicious no-show winner, Jan. 30, 2013
- Inquiry in Iowa Lottery mystery touches Canada, Jul. 26, 2013
- Lottery jackpot probe heats up after immunity deal, Oct. 8, 2013
- Iowa Lottery still hunting mystery Hot Lotto winner [video], Oct. 10, 2014
- MUSL employee arrested in Hot Lotto jackpot mystery, Jan. 15, 2015
- BOMBSHELL: MUSL employee might have rigged Hot Lotto computerized drawing, Apr. 13, 2015
- Texas man charged in Iowa lottery case contests extradition, Apr. 20, 2015
- Extradition trial begins this week in $16.5M Hot Lotto fraud case, Jun. 7, 2015
- Inside the biggest lottery scam ever, Jul. 7, 2015
- Trial underway in world's biggest lottery fraud case, Jul. 14, 2015
- Lottery security chief: Rigging computerized game "sadly" possible, Jul. 15, 2015
- Prosecution rests in Hot Lotto trial, Jul. 16, 2015
- Defense quickly wraps up in Hot Lotto trial, Jul. 16, 2015
- Hot Lotto case moves to jury for deliberations, Jul. 17, 2015
- Former lottery security employee guilty of rigging $14.3M drawing, Jul. 20, 2015
- MUSL security worker who rigged drawing gets 10 years, Sep. 9, 2015
- HOT LOTTO DRAWING CHEAT CHARGED WITH RIGGING MORE JACKPOTS, Oct. 9, 2015
- Texas authorities had previously investigated brother of lottery cheat, Oct. 14, 2015
- Another $1.2M Hot Lotto jackpot rigged by Tipton, officials say, Nov. 21, 2015
- Jackpot-fixing investigation expands to more state lotteries, Dec. 18, 2015
- Prosecutors say Tipton rigged two jackpots he purchased tickets for in Kansas, Dec. 21, 2015
- Maine gives names of Hot Lotto winners to Iowa team looking into rigging scheme, Dec. 23, 2015
- S.C. Lottery assures public no computerized drawings used in state, Dec. 23, 2015
- Kansas lottery players questioning game's integrity, Dec. 23, 2015
- MUSL CHIEF OUSTED OVER JACKPOT-RIGGING SCANDAL, Dec. 23, 2015
- Lottery scandal unlikely to affect New Mexico, official says, Dec. 26, 2015
- Tipton granted delay in next trial until July, Dec. 29, 2015
- Iowa Lottery CEO Terry Rich to answer lottery player questions live Monday evening, Jan. 11, 2016
- First lawsuit in state lottery-fixing scandal seeks millions, Feb. 4, 2016
- MUSL seeks to dismiss lawsuit over rigged jackpot, Apr. 1, 2016
- Lottery scammer's brother facing criminal charges, Apr. 6, 2016
- Investigators find Tipton's software code to rig computerized lottery drawings, Apr. 7, 2016
- Lottery rigging scandal prompts security audit in South Dakota, Apr. 13, 2016
- Preliminary hearing rescheduled for Tommy Tipton in lottery rigging case, Apr. 22, 2016
- Third suspect surrenders in national lottery rigging scandal, Apr. 28, 2016
Boy, this stuff is turning into a virus and the Dragon Lady thinks she is immune.
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.
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.
with Todd. People need to vote with their dollars and their voices. Stop playing RNG games and let your legislature know why.
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.
My thought exactly Todd.
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.
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.
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.
All 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...
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.
"People need to vote with their dollars and their voices.:
Your voice doesn't mean a thing if you don't back it up with your wallet, and the lotteries have an enormous amount of evidence that people don't do that. How many people said they were going to cut back or even completely stop buying PB tickets when MUSL increased the odds a few months before selling over a billion dollars worth of tickets for a single drawing? The lottery waves a bunch of money in the air and people buy tickets to try and get it.
"But can they prove Eddie Tipton rigged those drawings?"
If they can find the code and prove that it was used for those drawings it's possible. That's a different question than "Can they convince a jury that Eddie Tipton rigged those drawings?" When they tell the jury how improbable it is that somebody who knew Tipton won through random chance the jurors may be perfectly willing to believe he rigged those games. Then on the way home they'll buy some lottery tickets with the firm belief that there's a realistic chance that they might win.
"I just wish people were sharp enough to fall back from playing in cases where these scams come out."
Yeah, and you wish you'd win the lottery, too, but it's not very likely. Tipton's scam (there's really just one) didn't do anything to decrease your chances of winning. It just would have reduced your share if you had played the same combination. There's actually a potential advantage in having the drawing rigged by an individual who's in it for themselves. I'm assuming that Tipton used combinations that he thought were less likely to be picked by other players, in order to reduce the chances of sharing the prize. That would then mean that all players who chose less likely combinations would have a somewhat better chance of picking the same one Tipton had programmed to win. I'd rather have a (big) jackpot to myself, but sharing one with other people would put more money in my pocket than any ticket I've bought so far.
The flip side of that (and I wonder if he's thought about it in hindsight) is that if he had deliberately used combinations that were more likely to have been played by others his wins may have been easier to hide. At the extreme, imagine the authorities trying to investigate the thousands of people who would have won if 1,2,3,4,5,6 had been the winning combination. Even if they find that somebody with a connection to Tipton was one of the winners who played 5,10,15,20,25,30, what's their argument when so many other people played that same combination and a bunch of similar ones?
I am going to ask a dumb question.
I remember RDGRNR used to call the woman in charge of TN lottery the Dragon Lady, can someone tell me why she is called that?
Because she looks like Hillary Clinton?
ONG, Hahahahahahahahahahahahahahaha not exactly the answer I was expecting, about fell off my chair.
You sir, have a wicked sense of humor, I am still dyin here.......
She was with Georgia lottery ,, they let go and tn gave her a big signing bonus,,,,, look @ tn payouts ,,,, somethings don't add up
Nothing fishy, the roommate's mug shot was already posted previously: https://www.lotterypost.com/news/302838
Check the scrolling section at the bottom of this news story for all the previous articles about the scandal.
Anyone that is Flamboyant is a dragon .......she is the queen ,if this answers your question,she was fired for being so flamboyant,,,,,take notice to me Im the queen of the lottery....blah blah blah....she is more of a scammer than Tipton..we all know it,you cant win nothing here...
Tipton has never been involved with Tennessee lottery scandals....
Iowa Assistant Attorney General Rob Sand alleges that Tipton installed software known as a root kit that enabled him to manipulate numbers in computers that were supposed to randomly generate number combinations for several lottery games. The program would then self-destruct leaving no trace. Tipton denies that allegation.
They prove to the jury it was Tipton that bought the Iowa ticket, but proving a self-destructing program existed might be very difficult. If the AG could replicate the self-destructing program it might be more convincing to a jury, but knowing it's possible should be the end to RNG drawings.
Had Tipton not bought the tickets (and ordered food) himself, they might not have caught him and he could still be rigging the numbers.
He got caught because he got GREEDY!!!!
Had to go back and watch again, yep, the arrogance of ignorance !
Flamboyant you mean.
bring back the balls n quit controlling ur low payouts
If everyone would stop playing the RNG games, and only the ball games, this would stop this. The RNG games is just one way the lottery knows who's playing what and how many people is on a certain number. Just think about, if ex:5000000 people were playing ex: 123 in the pick3, with a 1.00 exact order in their state( and they all ran their tickets thur the machine, do you think by using the RNG machines, the lottery officials are going to drop that number? H NO.!! IF they did the lottery will soon go BROKE. This is why they use these machines. Think about it. That's why I know It's not random. Not with the RNG machines it's not. Now Powerball and Mega Million maybe, but look at the odds. jmo.
If it was random, let the balls deciede the winning number. Hmmm.
If you want to play the lottery and your state only offers RNG games, then you don't have a choice, you have to play what they offer.
destinycreation but it's a shame tho. That's how they got us buddy.
100%
Tennessee lottery i think is horrible........i can find patterns with the rng......and you can almost predict a pair.......that will come......but with that in mind
they know what you are playing and they know what they are going to pay out........the only conclusion is it is rigged........yesterday in the cash 4
the payout for the draws never exceed 10 grand.......they should have to show how many winners there were for each winning number........and if you see
that only 6 people won........or even 30.........everyone would realize that it is a scam....... and you win only if they let you win.......
I wish we could do something about what they are doing to us in TENNESSEE,but we just have to wait,till either she gets caught or go else where.I play Georgia alot,going into Chattanooga,,,the loop there is so exciting...I play at the Pilot station....give it a try sometimes.Grab a subway sit in the booths and scratch away...very much fun.I love the drive and get away.
I wish I could get us all together I would show you how to win Georgia.
You are right gra8 about everything,,scam,scam,scam...we are being scammed the legal way,,,,just stop playing...IT DOES NO GOOD..I think they even post fake payouts.Seeing her go down will be my Lottery hit.
Just my 2 cents but I think too much emphasis is placed on the RNG's used to draw the numbers when it's
only half of the process. Quick picks are RNG generated but we never really hear anything about that. I
ran a few test and something is out of place. The RNG in a lottery sales terminal can be changed daily by
a simple firmware update. How can anyone profit from this, glad you asked. Numbered lottery games are
closed systems as they pick numbers from a finite pool. As such the output should follow the rules of the
matrix. Example, in a 5-39 game around 75% of the possible sets will have 5 or 6 individual digits that make
up the five numbers. In a fair game this means that 75% of the tickets generated should also contain 5 or 6
individual digits. What this boils down to is that 75% of QP's should also have 5 or 6 individual digits for this
game. The average number of individual digits is different depending on the game matrix being played. To my
knowledge we can't get a list of the RNG generated lines sold for a drawing but I find that the QP's I buy don't
hold true to the rules of the matrix. Most states have a fixed profit of around 50% of sales but we all know
that with larger JP's, ticket sales increase, more sales more money. My small scale test fall short of proving
anything but it's something I don't think people are aware of. Tipping the scale so that more tickets are sold
with fewer or greater individual digits could effect the bottom line while going undetected. Keep the process
used in the main drawing as fair as possible so that everyone is convinced it's on the up and up while pulling
the rug out from under the masses. Not saying they do this but it's possible.
We either trust them, or we don't.
RL
More simply stated, if the lines you are playing in a game similar to a 5-39 have fewer than 5 or greater than
6 individual digits you have no chance of winning a JP 7.5 of every 10 plays on average. This is not a wild rant,
it's statistics 101.
RL