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Iowa Lottery wins International Gaming-Compliance award for work in lottery rigging investigation

Apr 19, 2018, 10:29 am

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Iowa LotteryIowa Lottery: Iowa Lottery wins International Gaming-Compliance award for work in lottery rigging investigationRating:

Long-running case culminated in 2017 guilty pleas from three men

CLIVE, Iowa — The Iowa Lottery has won an international gaming-compliance award for its work in the long-running lottery jackpot investigation that uncovered fraud against U.S. lotteries and resulted in guilty pleas from three men.

GamblingCompliance on Wednesday named the Iowa Lottery its 2018 recipient for outstanding achievement in compliance. The organization's annual awards that recognize excellence in 11 categories focused on regulatory compliance and responsible gaming were presented in London. The lottery was one of five finalists worldwide for the gaming-compliance award.

"I'm enormously proud of the work we put in and the perseverance investigators showed through the years in bringing this long-running case to a successful conclusion," Iowa Lottery CEO Terry Rich said. "This was a crucial opportunity for us to pinpoint security enhancements and new technologies that we could bring to our operations. I'm confident in the integrity of our games and know we will continue to aggressively monitor and make improvements to protect against vulnerabilities identified."

GamblingCompliance, with headquarters in London and its U.S. hub in Washington, D.C., provides independent legal, regulatory, and business intelligence to the global gambling industry.

The jackpot investigation case began with a lottery ticket purchased in Des Moines in December 2010 and culminated in 2017 with guilty pleas from three men who admitted they illegally claimed prizes by rigging lottery drawings in five states. (See Timeline of the biggest crime in US lottery history below, which outlines how the case went from a search for the winner of a big jackpot to suspicion of wrong-doing to a prosecution of a vast criminal enterprise.)

Eddie Tipton, the man at the center of the investigation, installed malicious computer code that allowed him to predict winning numbers in some lottery drawings.

Tipton's plan took advantage of the primary weakness of computerized drawings: unlike traditional ball drawings, it is impossible for a human being to witness how the numbers are actually generated inside a computer. The computer code was secretly programmed by Tipton to produce certain predictable combinations to occur on specific days of the year.

And according to a recent report, Tipton says that today computerized drawings remain fatally flawed.

Tipton pleaded guilty to three felony charges in Iowa and Wisconsin and was sentenced in August 2017 to up to 25 years in prison. He had conspired with friends and family to claim lottery prizes in Colorado, Kansas, Oklahoma and Wisconsin and attempt to claim a Hot Lotto lottery jackpot in Iowa, which ultimately was not paid. (Hot Lotto has since been discontinued and replaced with the new Lotto America game, which does not use computerized drawings.)

Tipton's younger brother, Tommy Tipton, also pleaded guilty in the case, as did Tipton's long-time friend, Robert Rhodes.

"It's appalling that the person at the center of the case once worked at a lottery-industry vendor organization and willingly committed crimes," Rich said. "He was brought to justice and we have moved forward with an even greater understanding that we must trust but verify in all areas of our operations. We're pleased that this international award recognizes the team for that effort."

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

2017

2018

Lottery Post Staff

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6 comments. Last comment 2 years ago by wizeguy.
Page 1 of 1
Todd's avatar - Cylon 200.jpg
50
Chief Bottle Washer
New Jersey
United States
Member #1
May 31, 2000
25841 Posts
Online

This is an award well-earned.  Congrats to Terry Rich and the Iowa Lottery!

 

Check the State Lottery Report Card
What grade did your lottery earn?

 

Sign the Petition for True Lottery Drawings
Help eliminate computerized drawings!

    music*'s avatar - DiscoBallGlowing
    USN United States Navy
    Fresno, California
    United States
    Member #157851
    August 2, 2014
    3959 Posts
    Offline

    Todd Northrop, I believe that I speak for most of the Lottery Post Members when I give you our heartfelt "THANK YOU" !!!

     I do not know who has read all your posts and what they will do with the facts. 

     Maybe your work had a little bit to do with the award going to Terry Rich and the Iowa lottery.

     Will there be a book written sometime in the future?

     "We are all in this together!" 

      Todd's avatar - Cylon 200.jpg
      50
      Chief Bottle Washer
      New Jersey
      United States
      Member #1
      May 31, 2000
      25841 Posts
      Online

      Todd Northrop, I believe that I speak for most of the Lottery Post Members when I give you our heartfelt "THANK YOU" !!!

       I do not know who has read all your posts and what they will do with the facts. 

       Maybe your work had a little bit to do with the award going to Terry Rich and the Iowa lottery.

       Will there be a book written sometime in the future?

      Will there be a book written?  I hope so!  I'll be the first to buy a copy.

       

      Check the State Lottery Report Card
      What grade did your lottery earn?

       

      Sign the Petition for True Lottery Drawings
      Help eliminate computerized drawings!

        music*'s avatar - DiscoBallGlowing
        USN United States Navy
        Fresno, California
        United States
        Member #157851
        August 2, 2014
        3959 Posts
        Offline

        Will there be a book written?  I hope so!  I'll be the first to buy a copy.

        The first line in the first Chapter will be, "It was a dark and stormy night." 

         Will the storyline include, Boy gets the girl, boy loses the girl, boy finds the girl again.?

         Eddie Tipton believes he has a sure fire way to steal money. Eddie and his co-conspirators lose the money and their freedom. 

         Another problem with theft is, You are cheating the IRS and the IRS hates that. 

        Patriot

         "We are all in this together!" 

          Avatar

          Zimbabwe
          Member #21
          December 7, 2001
          4530 Posts
          Offline

          Woo Hoo for You

          .

            wizeguy's avatar - animaniacs04

            United States
            Member #15143
            May 10, 2005
            454 Posts
            Offline

            Congrats Mr Rich and Iowa Lottery!