The computer program that a former lottery security official used to rig drawings worth millions of dollars in Iowa and other states was more expansive than investigators first discovered, court records filed last week show.
Eddie Tipton, a former employee of the Multi-State Lottery Association (MUSL) in Clive, wrote the code to allow him to predict the randomly drawn numbers of multimillion-dollar jackpots in as many as 17 states and claim the cash prizes.
The code remained active and undetected for almost a decade before Iowa officials in 2015 discovered Tipton's scheme. It allowed Tipton and his accomplices to defraud the system on specific days each year, which investigators initially believed were Nov. 23 and Dec. 29.
But an independent security audit conducted by the Multi-State Lottery revealed at least one more date was written into Tipton's code for picking the winning numbers: May 27.
Tipton was sentenced last year to up to 25 years in prison for rigging lotteries in Iowa, Colorado, Wisconsin, Kansas and Oklahoma. But he was not prosecuted for rigging drawings on any May 27 dates.
He told investigators that they had identified all the fraudulent wins associated with his scheme and said he didn't attempt others.
His brother, Tommy Tipton, told investigators something different.
Tommy Tipton — who acknowledged being tied to his brother's $4.5 million rigged jackpot win in Colorado in 2005 — said Eddie gave him numbers for at least two other drawings that he tried to use to win jackpots. But he didn't win.
The additional May 27 window means there are probably more potential fraud cases, according to Evan Teitelman of SeNet International Corp.
The Multi-State Lottery hired SeNet in 2015 to help perform a security evaluation following Tipton's arrest.
MUSL is a non-profit, government-benefit association headquartered in Clive that is owned and operated by its 36 member lotteries, including the Iowa Lottery.
It provides security, information technology and draw services to its members.
MUSL is refusing to make SeNet's evaluation available in a civil case in which Larry Dawson of Webster City, Iowa, contends that his jackpot was smaller than it should have been as a result of Tipton's fraudulent win.
In a separate case, Burlington, Iowa, resident Dale Culler is additionally seeking a class-action lawsuit on behalf of all players cheated out of lottery wins by Tipton's manipulated drawings.
Teitelman made the comments about the newly discovered third rigged date during a July 30 Def Con 25 Hacker conference called "Backdooring the Lottery and Other Security Tales from Gaming."
His presentation was cited last week by Dawson's lawyers in an effort to compel Multi-State Lottery to release the full evaluation.
"This is just known cases of fraud," Teitelman said. "There are probably more, especially since we found a third date in the code itself."
Teitelman could not be reached for comment Friday, but Gus Fritschie, another executive of SeNet and a co-presenter at the July conference, confirmed the security evaluation uncovered the third rigged date.
Investigators have reviewed games they believe Tipton could have tampered with, including the May 27 dates, Dave Jobes, assistant director of the Iowa Division of Criminal Investigation, said Friday.
"We did our best to identify any of those across the country based on what information that we had," Jobes said.
Tommy Tipton, a former Texas magistrate, was sentenced to a 75-day jail sentence in Texas after he pleaded guilty in June to conspiracy to commit theft by deception.
Robert Rhodes, a friend of Eddie Tipton's and an accomplice of the scheme, was sentenced to two years probation after pleading guilty to fraud.
Bret Tyone, CEO of MUSL, said he couldn't comment Friday, citing ongoing litigation.
The possibility that more games were rigged deserves further review, said Gary Dickey, Culler's attorney in the case seeking class-action status.
"Any drawing that was rigged to produce predetermined numbers was not random," Dickey said. "Even if no jackpot was claimed, the players would still have been defrauded by being deprived of the random drawing they were promised."
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
- Lottery rigging mastermind sentenced to 25 years in prison, Aug. 22, 2017
- Winner sues Colorado Lottery 12 years after rigged drawing, Oct. 5, 2017
Thanks to lejardin for the tip.
Thank You lejardin for the tip. The RNG games are to blame. Along with the immoral behavior and criminal conduct by the criminals here.
Have any other States learned from these cases? Have they changed from RNG to balls drawn?
music*, I think you answered your own question second sentence. RNG probably here to stay and lotteries could care less. I personally try to not play them.
lejardin, appreciate the real reveal = greater conceal
Pro Player & FairGame Advocatus
Eddessa_Knight with Secret Light
More reason why i have stopped playing the new lotto america. No live draws no after draws video anywhere to be found. Only happens when they are using RNG.
Which i don't trust anymore. NO VIDEOS NO PLAY
I think every member of lp knew this! Lol
"The code remained active and undetected for almost a decade"
Um wow. These lotteries just suffed a set back they will never recover from.
They have also just lost a lot of money from the upcoming lawsuits.
I wonder how many jackpots were rigged and people did not even know yet still played.
"Tipton was sentenced last year to up to 25 years in prison for rigging lotteries in Iowa, Colorado, Wisconsin, Kansas and Oklahoma."
I play the scratch tickets for the colorado lottery but I am not sure if I will ever again. Yes I know the rigging was not the scratch tickets but I do not trust them anymore.
I have an advance ticket for Lotto America and up until this past week I never got even one number, I finally won $3 lol. To date it still has not been won and most of the money was from the old Hot Sizzler Lotto that had not been won in months either. I will not be buying any more of those tickets. Good point, no videos, no play.
I dont know about others but I am getting sick and tired of all the games and fraud.
I only play PB & MM. I usually buy one ticket per draw. It only takes one ticket to win. If I played more than that my odds would not improve.
Both games are drawn with rubber balls. The Security surrounding them is intense.
l somewhat knew that Eddie’s operation was more extensive, and what do you know..the plot thickens! When all is said and done, the authorities will be scratching their heads for years to come.
Been asleep on this one. Didn't know Lotto America was back in a smaller version.
I went to the website and maybe missed it, but is it RNG? I would hope NOT after valuable lessons should have been learned following the Tipton caper.
Due to falling sales of Hot Lotto (whose final drawing was October 28, 2017), a new version of Lotto America became available on November 12, 2017; its first drawing was November 15, 2017. Lotto America is available wherever Hot Lotto was offered at the time of its final drawing (except New Hampshire, which is expected to join in June 2018.) Lotto America is drawn on Wednesday and Saturday nights after 11 p.m. ET/10 p.m. CT. For each $1 play, bettors choose five numbers from 1 through 52, and a "star ball" numbered from 1 through 10, or ask for terminal-generated numbers. For an additional $1 per play, the bettor can add the "All-Star Bonus" option, which multiplies non-jackpot prizes by 2, 3, 4, or 5. The minimum Lotto America jackpot is $2 million; however, the game's initial jackpot was $15 million; the 13 members chose to augment the jackpot with funds from Hot Lotto, whose final jackpot was not won.
Unlike Hot Lotto, which used a random number generator during most of its run (including the infamous December 2010 drawing whose jackpot was "won" by Eddie Tipton, a MUSL employee), Lotto America is drawn using physical ball machines and numbered balls. One machine draws the five main numbers while another is used to draw the "Star Ball". These draws are streamed live over the Internet from Tallahassee, Florida, even though Florida does not participate in the game.
Yet there are no videos or any proof on this New Lotto America is not the same as the Hot Lotto. Even my State lottery don't know what is going on . I stopped playing them sticking with Lucky for life and the occasional powerball.
Yet there are no videos or any proof on this New Lotto America is not the same as the Hot Lotto. Even my State lottery don't know what is going on . I stopped playing them sticking with Lucky for life and the occasional powerball.
Apparently you can see the drawing after it's done at <link removed>
Nothing on youtube, not even under the Florida lottery channel
I have removed that link you posted, because it is NOT an official lottery website, and that is NOT the official drawing.
I mean how hard is it to make a 1 minute video and upload it on Youtube. They want us to buy tickets but don't wanna show us what we are paying for.
Some transparency they got there.
Everything on this new Lotto America is Fishy. Until i see a video of this game am not buying.
But good luck to anyone playing Lotto America.