Audit reveals 'questionable' Colorado Lottery wins

Sep 25, 2018, 9:16 am (32 comments)

Colorado Lottery

A handful of people seem to have been winning the Colorado Lottery a bit more often than the odds would dictate, raising the specter of possible wrongdoing, a state audit revealed Monday.

That audit showed that some individuals, including one licensed Lottery retailer, have won several high-dollar prizes over the past three years, raising concerns with the Colorado Auditor's Office that something could be amiss.

  • One person won $600 or more from the Lottery's Pick 3 game 47 times over a three-year period, claiming $35,370 in prizes.
  • Another individual won $600 from the Pick 3 game 26 times in nine months, claiming $46,210.
  • A person who owns an undisclosed Lottery retail license won the Pick 3 game 24 times in three years, purchasing all of those tickets from the store the person owns, and claiming $39,750 in that time.
  • Another person won the top prize for the Cash 5 game 12 times in the same drawing.

Auditors said that handful of people, none of whom was identified, won 18 percent of all high-dollar prizes and 20 percent of Pick 3 winnings from January 2015 to February 2018.

"Specifically, we identified 10 individuals who each won 15 or more times from the Pick 3 game during our review period," auditors told the Legislative's Audit Committee. "In total, these 10 individuals won 230 of the 1,276 high-dollar prizes and claimed almost $326,000 of the $1.6 million paid out in prizes from the Pick 3 game during this period. Since the Lottery does not gather information on individuals claiming prizes under $600, it is unknown how many of the lower-dollar prizes these individuals may have also won." Auditors said the odds of winning that many times is about one in 33 million.

"Although all of the individuals we identified through our analysis may have just been lucky and/or they purchased a lot of tickets, the unusually high number of wins for each of them, and the fact that one of them is a Lottery retailer, raises a question as to the legitimacy of the wins," the auditors said. "The Lottery had not looked into any of these individuals to verify the legitimacy of their wins."

The auditors said the Lottery doesn't routinely review prize winner data, and has no policy requiring its staff to do so unless there is a "reasonable" suspicion a crime has occurred. Lottery officials told auditors they did not believe the individuals cited in the audit rose to that level, auditors said.

Lottery officials have since said they agreed with the auditors' recommendation to look into the matter, and to create more definitive policies dealing with preventing future incidents.

Daily Sentinel

Comments

Raven62's avatarRaven62

Sounds like the Colorado Lottery thinks their shouldn't have been any Winners during the 38 month time period checked.

CDanaT's avatarCDanaT

I wonder what the largest dollar figure that these folks won in each drawing ?

If CO is similar to most states, the tax dollars aren't usually taken out until the $5K mark. 47 times in 36 months sure is unique. I guess you could write that off with offsetting losses.

Now, if they were cashing the tix in for someone else ? I wonder what their cut was ? Evil Smile

IMHO it doesn't matter, the ticket was purchased by a legal distributor and matched the number drawn

Tucker Black's avatarTucker Black

Lottery retailers should not be allowed to play the lottery. It smells fishy.

MillionsWanted's avatarMillionsWanted

Some of them might be "lottery win collectors" for people owing money to the state or money to child support and perhaps someone actually got a secret lottery system which actually works.

Tucker Black's avatarTucker Black

Quote: Originally posted by MillionsWanted on Sep 25, 2018

Some of them might be "lottery win collectors" for people owing money to the state or money to child support and perhaps someone actually got a secret lottery system which actually works.

owing money to the state -- check

secret lottery system for scratch-offs -- possible (this is why lottery retailers should not be allowed to play)

secret lottery system for pick 3,4 -- slight possibility, not based on a system of picking numbers, but a lottery retailer who does something nefarious to the hardware

 

Another possibility for winning pick 3,4 so often is someone buys tons and tons of lottery tickets. I'm trying to figure out how they determined that the probability of winning this many times is 1 in 33 million. You would have to know how many lottery tickets were purchased.

 

That is, if you buy 1,000 tickets and 500 of them win, you are ridiculously lucky (or a cheating lottery retailer). But if you buy a million tickets and ONLY 500 of them win, you are unlucky.

 

No one keeps track of who bought tickets, only who won.

MillionsWanted's avatarMillionsWanted

Quote: Originally posted by Tucker Black on Sep 25, 2018

owing money to the state -- check

secret lottery system for scratch-offs -- possible (this is why lottery retailers should not be allowed to play)

secret lottery system for pick 3,4 -- slight possibility, not based on a system of picking numbers, but a lottery retailer who does something nefarious to the hardware

 

Another possibility for winning pick 3,4 so often is someone buys tons and tons of lottery tickets. I'm trying to figure out how they determined that the probability of winning this many times is 1 in 33 million. You would have to know how many lottery tickets were purchased.

 

That is, if you buy 1,000 tickets and 500 of them win, you are ridiculously lucky (or a cheating lottery retailer). But if you buy a million tickets and ONLY 500 of them win, you are unlucky.

 

No one keeps track of who bought tickets, only who won.

There was a woman who learned when to buy scratch offs in which stores using statistics. She became a millionaire.

ckrakowski

Sounds like Tipton still has co-horts loose.

Stack47

Quote: Originally posted by Tucker Black on Sep 25, 2018

Lottery retailers should not be allowed to play the lottery. It smells fishy.

What if the retailers were buying winning tickets at .75 cents on the dollar? And some of the larger prizes could be 50/50.

It happens all the time at race tracks when for whatever reason a winner does not want the IRS or anyone else they owe money to found out about their win. What's fishy about this story is the lottery should know all about the "ten percentors".

weshar75's avatarweshar75

Starting this year in 2018 the Oregon lottery takes the 8% state income taxes out of $1500 or higher in years past they would wait until $5000 and higher for both federal and state taxes.  So Oregon wants their cut of the pie.-weshar75

US Flag

grwurston's avatargrwurston

Are you kidding me??? The first guy won 47 times in 3 years. That's 15 wins a year, avg win $752. The second guy won 26 times in 9 months. That's 3 wins a month. Avg win $1,777. The third guy won 24 times in 3 years. That's 8 wins a year, for an avg win of $1,656.

What in the world is so unusual about winning the Pick 3 just over once a month like the first guy did? Or 3 wins a month like the second guy did, or once every month and a half like the third guy did? It's unbelievable that the lottery is even investigating this. 

 What?      Crazy    No No

Stack47

Quote: Originally posted by grwurston on Sep 26, 2018

Are you kidding me??? The first guy won 47 times in 3 years. That's 15 wins a year, avg win $752. The second guy won 26 times in 9 months. That's 3 wins a month. Avg win $1,777. The third guy won 24 times in 3 years. That's 8 wins a year, for an avg win of $1,656.

What in the world is so unusual about winning the Pick 3 just over once a month like the first guy did? Or 3 wins a month like the second guy did, or once every month and a half like the third guy did? It's unbelievable that the lottery is even investigating this. 

 What?      Crazy    No No

I Agree!

Auditors said the odds of winning that many times is about one in 33 million.

We have two members, one with 18 hits on the Colorado pick-3 and the other with 15 in last 30 days so I'm guessing the auditor's odds for doing that is about 12 times higher?

DELotteryPlyr's avatarDELotteryPlyr

WAIT! Why are the players playing tickets which will win over $600??? Pick 3 should ALWAYS be played at winning levels below that.

itpmguru's avataritpmguru

If ya ask me, that is not that many big wins over the period in question.  It is pick three....it is called SKILL!

 

Maybe they will takes notes from NC and learn how to rig their lottery better so less people win.

kennedygrandma8's avatarkennedygrandma8

This is not unusual before NC got stupid I won often like twice a week sometimes back to back and at least every other month now lucky if I hit 3 times a year

Subscribe to this news story