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Judge: winner's lawsuit in lottery-fixing case can continue

Insider BuzzInsider Buzz: Judge: winner's lawsuit in lottery-fixing case can continue
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The winner of a $9 million state lottery jackpot can continue a lawsuit that contends he would have won millions more if the prior drawing had not been rigged by a rogue insider, an Iowa judge has ruled.

District Court Judge Karen Romano rejected requests Wednesday to dismiss the case, which is the first filed against the Multi-State Lottery Association over a major jackpot-rigging scandal inside the organization.

She ruled that the association and the Iowa Lottery are not immune from the lawsuit and that Larry Dawson of Webster City, Iowa has the legal standing to bring the case.

Dawson, a financial adviser nicknamed "Lucky Larry," won a Hot Lotto jackpot worth $9 million in May 2011. He contends that the jackpot should have been worth $25.5 million had the prior jackpot in December 2010 not been fixed by association security director Eddie Tipton.

A jury convicted Tipton last year of fraud for allegedly tampering with the random number generator that picked the digits for the $16.5 million drawing at the association's suburban Des Moines headquarters. Investigators say that Tipton then bought the winning numbers himself and worked with associates in an unsuccessful attempt to claim that prize. The Multi-State Lottery Association ultimately sent the money back to the 16 state lotteries that offer the game as an unclaimed prize.

Dawson's lawsuit, filed earlier this year, contends the prize pool should have rolled over to subsequent drawings under Hot Lotto's official rules since there was no legitimate winner. He won the game's next jackpot, and contends it should have been much larger.

The lawsuit alleges that lax security measures at the association allowed Tipton to carry out his scheme undetected for years. He has since been charged with working with associates to claim jackpots worth millions in Colorado, Wisconsin, Oklahoma and Kansas. Tipton has pleaded not guilty to those charges and is appealing his earlier conviction.

Before answering Dawson's lawsuit, the Iowa Lottery and the association filed motions to dismiss the case based on several legal theories, including that they are legally shielded and that Dawson's injuries were too speculative.

In a statement, Dawson's attorneys said they were pleased with the ruling and look forward to continuing the case.

"Lottery players across the country, including Iowans, were defrauded as a result of rigged lottery games," said the attorneys, Jerry Crawford and Nick Mauro. "This ruling allows us to focus on learning why and how the Iowa Lottery and (the association) allowed this to occur. More important, it provides the opportunity to hold them accountable for their conduct."

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.

2011

2012

2013

2014

2015

2016

AP, Lottery Post Staff

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11 comments. Last comment 1 month ago by LottoAce.
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Happy California
United States
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August 2, 2014
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Posted: October 13, 2016, 7:18 pm - IP Logged

 This story and related stories could go on for a long time. Who knows when it will end.

 I've been rich and I've been poor. Believe me, rich is better. 

 Attributed to Joe E. Lewis and others

    TheMeatman2005's avatar - lightening
    Brooklyn, NY
    United States
    Member #169723
    October 29, 2015
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    Posted: October 14, 2016, 5:13 am - IP Logged

    I hope he wins the case. Go Larry, go!

    The Meatman

    “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

    Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

      LottoAce's avatar - WWI Flying_Ace.gif
      N.C.
      United States
      Member #56005
      October 28, 2007
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      Posted: October 14, 2016, 11:53 am - IP Logged

      I hope he wins the case. Go Larry, go!

      I hope he wins with intrest!

      "know your limitations, but excede your expectations"

        Avatar
        New York, NY
        United States
        Member #140634
        March 23, 2013
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        Posted: October 15, 2016, 3:22 am - IP Logged

        How many years did he get behind bars? I hate how people think that it's ok to steal from other people just because everybody else's doing it. That's always their excuse. It's not right, and they'd be lucky if God helps their soul. Though I doubt that they care unfortunately.

          LiveInGreenBay's avatar - driver
          Green Bay
          United States
          Member #169391
          October 15, 2015
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          Posted: October 15, 2016, 8:39 am - IP Logged

          So where did that other money go?  The lottery has it.  Hope this guy wins the case.  Its hard enough to win anything in the lottery and now they want to keep all those millions that should have gone to Luck Larry?  Screw them.  Put me on that jury!

          Never give up.  Banana

            Avatar
            NY
            United States
            Member #23835
            October 16, 2005
            3475 Posts
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            Posted: October 16, 2016, 2:55 am - IP Logged

            "Dawson's injuries were too speculative."

            Sure they are. If the "winning" numbers hadn't been rigged maybe somebody else would have won that drawing, or the higher jackpot would have resulted in higher ticket sales and somebody else winning before Dawson did. It's also possible that all sorts of other things would have been different, and maybe Dawson wouldn't even have won.

            What's absolutely certain is that there's about $9 million in cash that belongs to the prize pool and should have gone to some winner(s) of Hot Lotto that the states kept for themselves. Maybe it shouldn't (all) go to Dawson, but it should definitely go to players.

              Avatar
              USA
              United States
              Member #172127
              January 16, 2016
              99 Posts
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              Posted: October 19, 2016, 5:59 am - IP Logged

              "Dawson's injuries were too speculative."

              Sure they are. If the "winning" numbers hadn't been rigged maybe somebody else would have won that drawing, or the higher jackpot would have resulted in higher ticket sales and somebody else winning before Dawson did. It's also possible that all sorts of other things would have been different, and maybe Dawson wouldn't even have won.

              What's absolutely certain is that there's about $9 million in cash that belongs to the prize pool and should have gone to some winner(s) of Hot Lotto that the states kept for themselves. Maybe it shouldn't (all) go to Dawson, but it should definitely go to players.

              Dawson already WON $9 million and he's going to waste it all on a Lawyer, theirs way to many variables in all this, who's too say that Dawson would've won $25 million some one else could have had a Winning Ticket, maybe Dawson would not have even Won the $9 mill. he Won to begin with, that he's now spent trying to get More! 

              I'd be more then Happy with even a few Millions, I'd still have some to share!

              HAPPY HOLIDAYS, BE SAFE & GOOD LUCK Y'ALL Sad Wavey

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                Maryland
                United States
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                January 2, 2015
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                Posted: October 21, 2016, 5:37 pm - IP Logged

                Dawson already WON $9 million and he's going to waste it all on a Lawyer, theirs way to many variables in all this, who's too say that Dawson would've won $25 million some one else could have had a Winning Ticket, maybe Dawson would not have even Won the $9 mill. he Won to begin with, that he's now spent trying to get More! 

                I'd be more then Happy with even a few Millions, I'd still have some to share!

                Good point, but remember we are looking at this from the outside.  Once you win that much your view changes a bit.  Maybe he is willing to 'spend' the money to see if he can win. Maybe he just wants to 'make a point' about this and is willing to spend the money to do it? 

                  noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
                  Bay Area - California
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                  December 12, 2012
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                  Posted: October 21, 2016, 6:08 pm - IP Logged

                  Dawson already WON $9 million and he's going to waste it all on a Lawyer, theirs way to many variables in all this, who's too say that Dawson would've won $25 million some one else could have had a Winning Ticket, maybe Dawson would not have even Won the $9 mill. he Won to begin with, that he's now spent trying to get More! 

                  I'd be more then Happy with even a few Millions, I'd still have some to share!

                  I Agree!.. It's no different than the woman who allowed Gloria to " cut in line" coming out & saying that the winning ticket could have been her's but instead went to Gloria. Nothing but speculation. 

                  People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

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                    NY
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                    October 16, 2005
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                    Posted: October 22, 2016, 1:53 am - IP Logged

                    I Agree!.. It's no different than the woman who allowed Gloria to " cut in line" coming out & saying that the winning ticket could have been her's but instead went to Gloria. Nothing but speculation. 

                    It's vastly different. The woman who let McKenzie go first did so voluntarily. Even if it was an absolute certainty that she would have had the winning ticket if she hadn't let McKenzie go first she wouldn't have any claim on the prize, and the state didn't withhold any money that should have gone to players.

                    There's absolutely no question at all that there's $9 to $10 million (cash value) that should have been paid out to someone. The only question is who would have won it if Tipton hadn't (allegedly) rigged the drawing, but there's no question about the uncertainty cutting both ways. Dawson was very definitely the first legitimate jackpot winner since the jackpot began growing after the previous jackpot was won, and it's absolutely impossible to prove that his jackpot wouldn't have been $9 to $10 million bigger if Tipton hadn't rigged the drawing.

                      LottoAce's avatar - WWI Flying_Ace.gif
                      N.C.
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                      Posted: October 30, 2016, 9:29 am - IP Logged

                      It's vastly different. The woman who let McKenzie go first did so voluntarily. Even if it was an absolute certainty that she would have had the winning ticket if she hadn't let McKenzie go first she wouldn't have any claim on the prize, and the state didn't withhold any money that should have gone to players.

                      There's absolutely no question at all that there's $9 to $10 million (cash value) that should have been paid out to someone. The only question is who would have won it if Tipton hadn't (allegedly) rigged the drawing, but there's no question about the uncertainty cutting both ways. Dawson was very definitely the first legitimate jackpot winner since the jackpot began growing after the previous jackpot was won, and it's absolutely impossible to prove that his jackpot wouldn't have been $9 to $10 million bigger if Tipton hadn't rigged the drawing.

                      good point.

                      "know your limitations, but excede your expectations"