
A former lottery security chief was sentenced to 25 years in prison on Tuesday for rigging the computerized lottery drawings in several states so he could collect the jackpots.
Eddie Tipton, former security director of the Multi-State Lottery Association (MUSL), received the maximum sentence from an Iowa judge, who mentioned Tipton's "greed" in his sentencing.
"I certainly regret my actions," Tipton told the court. "It's difficult even saying that with all the people that I know behind me that I hurt."
Tipton pleaded guilty in June to a charge of ongoing criminal conduct for a scheme involving seven lottery tickets in five states, according to court documents. He admitted to rigging computer programming code to produce winning numbers — netting Tipton and his accomplices millions of dollars.
Tipton has agreed to pay about $2.2 million in restitution, including $1.1 million to the Colorado lottery, $644,000 to the Oklahoma lottery, $391,000 to the Wisconsin lottery and $30,000 to the Kansas lottery.
When Judge Brad McCall asked him on Tuesday how he intended to repay the money, Tipton said, "Initially, I really don't know."
Prior to his sentencing, Tipton's lawyer said his client was ready to accept his punishment.
"He looks forward to putting this entire matter behind him and moving on with his life after he serves his sentence," lawyer Dean Stowers said in an email. He had asked the judge for a suspended sentence.
Tipton was formerly a programmer with the Multi-State Lottery Association, the agency that administers some state lottery drawings. He designed and maintained software "for computerized random number generators used to select winning lottery numbers in many states across the country," according to the office of Iowa Attorney General Tom Miller.
Tipton, who lives in Texas, is accused of buying lottery tickets in various states, including Iowa, and selecting numbers that he knew would win, since he designed the program that generated the winning numbers. Tipton then gave these tickets to third parties who agreed to cash them and split the money with him.
He launched construction on a 4,800-square-foot home outside of Des Moines that contained a movie theater, a gym, overlooked a pond and sat on 22 acres after his first illegal win in 2005, court documents show. The scam went on to claim at least six more games across five states that netted more than $2 million, investigators alleged.
The scam began to unravel following unsuccessful attempts to anonymously collect a $16.5 million Hot Lotto ticket that was purchased at a Des Moines convenience store in 2010.
One his accomplices was his brother, Tommy Tipton, authorities said. The investigation against the Tipton brothers began in 2010, with a suspicious claim for a $14.3 million Hot Lotto jackpot in Iowa that lottery officials refused to pay. The Iowa Division of Criminal Investigation traced Tipton's scheme to other states as well.
Eddie Tipton made a deal with prosecutors in June, in which he pleaded guilty to the Iowa charge of ongoing criminal conduct. Prosecutors dropped a charge of money laundering. He will be allowed to serve the Iowa sentence concurrently with a sentence of up to five-and-a-half years in Wisconsin, where he pleaded guilty to theft by fraud and computer crime.
His brother Tommy Tipton, a former judge in Texas, is currently serving a 75-day sentence in Texas for a misdemeanor theft charge and deferred judgment on a felony charge of conspiracy to commit theft.
The Tiptons' friend Robert Rhodes, who also lives in Texas, was the one who attempted to redeem the $14.3 million jackpot. He has pleaded guilty to fraud and will be sentenced on Friday.
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
- 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
2012
- 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
2013
- 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
2014
- Iowa Lottery still hunting mystery Hot Lotto winner [video], Oct. 10, 2014
2015
- 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
2016
- 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
- Lottery scam investigation comes to Tennessee, May 11, 2016
- Investigators find another friend of Tipton who cashed rigged lottery prize, May 11, 2016
- Convicted computerized drawing fraudster argues Iowa court appeal, Jun. 16, 2016
- US Senate panel demands info in lottery scandal, Jun. 22, 2016
- Lottery rigging trial to be moved out of Des Moines, Jun. 27, 2016
- Eddie Tipton's new trial delayed until 2017, Jul. 1, 2016
- Iowa court reverses part of Tipton's lottery fraud conviction, Jul. 28, 2016
- Internal investigation concludes Tipton acted alone to rig lottery drawings, Aug. 10, 2016
- Prosecutors say 2 more men may be linked to lottery riggings, Aug. 24, 2016
- Judge: winner's lawsuit in lottery-fixing case can continue, Oct. 13, 2016
- Alleged lottery scandal conspirator to enter new plea, Nov. 14, 2016
- Accused lottery rigger Eddie Tipton facing new Wisconsin charges, Dec. 22, 2016
2017
- Man files lawsuit over rigged lottery jackpots, Jan. 4, 2017
- Trials for Tipton brothers charged in lottery scandal delayed, Jan. 8, 2017
- Former MUSL official received severance amid lottery jackpot scandal, Jan. 10, 2017
- Texas man pleads guilty to fraud in lottery scandal case, Jan. 11, 2017
- Iowa Supreme Court hears lottery rigging case, Feb. 14, 2017
- Kansas files lawsuit against accused lottery rigger, Mar. 16, 2017
- Best friend to testify against Tipton at July lottery rigging trial, Mar. 31, 2017
- Mastermind of lottery fraud will explain how he rigged jackpots, Jun. 12, 2017
- FBI missed rigged jackpot in 2006 before lottery scheme grew, Jun. 19, 2017
- The 5 lottery jackpots Tipton and his friends stole, Jun. 20, 2017
- Lottery jackpot rigger's Iowa convictions dismissed, Jun. 23, 2017
- IT'S OFFICIAL: Tipton pleads guilty to rigging computerized lottery drawings, Jun. 29, 2017
- Lottery rigging accomplice used Wisconsin payout for offshore tax scam, Jul. 6, 2017
- Hot Lotto multi-state lottery game to end in October, Aug. 9, 2017
They lowered the boom on Eddie.
It appears he thought he was going to get away with this since he started building a beautiful custom residence. Too bad he isnt ever going to call it home. What a waste.
What gets me is why don't these criminals who steal millions flee to a non-extradition country? Everyone gets caught eventually. Just run as soon as you have enough to retire on. Plenty of very nice non-extradition countries offer economic citizenship.
He's sorrylol
What a joke !!
It sure didn't bother him while he was colleting all the money.
He should and the rest of them should ROT in Prison
Greed. Pure Greed.
Dont give any of them any ideas lol.
I remember years ago there was one store clerk who stole a winning million dollar ticket. He told the owner of the ticket it was worth a thousand dollars. The clerk claimed the money and immediately headed off to Nepal. If I recall correctly it was the lottery that found the ticket owner was ripped off. The U.S. froze the thief's account in Nepal.
This was a show on The Lottery Changed My Life so you know it was years ago and at that point there was still a couple hundred thousand outstanding and the owner was trying to get back.
LIKE KABOOM
take a nice long nap in
you going to need it where your going no more
y days for YOU.. lol...
...Ed don't drop the soap

8/22/2017
. . . Tipton was formerly a programmer with the Multi-State Lottery Association,
the agency that administers some state lottery drawings.
He designed and maintained software
"for computerized random number generators
used to select winning lottery numbers. . ."
==================================================
Oh Boy!! And THEY said it couldn't be rigged!
Doesn't surprise me one bit! His sentence was to light IMHO!
So, by definition, were these random drawings??
When asked how how he would repay the money, he responded with 'I have no idea'
How about we start with you SELLING the giant house you built with the money. Plus any and ALL assets (cars, boats, planes ect).
I wonder if this will someday be an episode of American Greed.
"He looks forward to putting this entire matter behind him and moving on with his life after he serves his sentence," lawyer Dean Stowers said in an email. He had asked the judge for a suspended sentence.
If 25 years was part of a plea bargaining arrangement, what would the sentence be if he was found guilty?
Up next, Tipton gets caught rigging dice games in prison laundry room scandal.
They obviously weren't expecting to get the max. You don't get the max in a plea bargain, unless it's life instead of death
Im not at any time going to condone what he has done. However, a co-worker of mine was sounding like HopesDreams tonight lol so i had to say i hear ya.But i guess he didn't want to live in the lap of luxury on a beach front in a lovely beach house/condominium where there are zero extradition.
Heck,even murderers and or worse in many cases child molest azzhat's do not get this long.The hammer was really dropped on him."