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Audit opens up conversation about possible collusion between Maryland lottery players and vendors

May 25, 2022, 4:49 pm

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Maryland LotteryMaryland Lottery: Audit opens up conversation about possible collusion between Maryland lottery players and vendorsRating:

Report reveals lack of investigative procedures for high-winning individuals

By Kate Northrop

A report conducted by the Office of Legislative Audits in 2022 revealed security concerns that suggest possible collusion between lottery winners and vendors in the state of Maryland.

The report, published and viewable online by the Maryland Department of Legislative Services, reviews a fiscal compliance audit of the State Lottery and Gaming Control Agency (SLGCA) between Jan. 3, 2017 and Oct. 15, 2020.

According to the Department, the evaluation committees found that "SLGCA had not established procedures to identify and investigate individuals who won multiple high-dollar lottery prizes (in some cases 200 or more times in a year) to identify patterns of potential collusion between players and lottery related vendors or officials."

The SLGCA is responsible for overseeing the state's lottery games and casinos, important for generating revenue for the state's multiple funds and other agencies. By extension, the SLGCA is in charge of marketing and developing lottery games, as well as regulating the ongoing operations of the state's video lottery terminals and table games.

SLGCA records show that 362 individuals won high-dollar prizes 20 or more times during the 2020 calendar year. Of these individuals, eight of them won high-dollar prizes 200 or more times, totaling over $4.46 million in winnings alone. Two of these players won the Multi-Match game a combined 439 times for $919,300 in winnings, six players won Racetrax 1,247 times for $1.7 million, and five won the Pick 4 game 505 times for $1.6 million. One individual also won the Pick 4 top prize of $5,000 79 times.

The prizes won by all 362 individuals totals $31.31 million paid out in 2020.

"Based on available information, we could not readily determine whether any of the winnings cited here were not legitimate, and data relating to the total number of times these individuals played a lottery game and the extent of any losses they may have incurred was not available," the report says. "However, considering the high rates of winnings noted, SLGCA should review patterns of winning tickets to identify where they were sold and redeemed, and attempt to identify relationships between winners and other high quantity winners, lottery retailers, and SLGCA or SLGCA vendor employees."

To mitigate the risk of possible collusion, the evaluation committee urged SLGCA to implement procedures for "routinely identifying and investigating unusually high winning rates by individual players" that may affect the legitimacy of winnings.

Additionally, the report found evidence of nepotism within the SLGCA, where a management employee approved a nearly $5,000 salary increases for an immediate family member employed at SLCGA in May 2019. According to the report, the management employee was not the employee's supervisor, and there was no documentation justifying the pay increase.

In another instance, an SLGCA employee directly supervised a family member also employed at SLGCA between April 2015 and February 2021. Between 2016 and 2020, the supervisor approved $7,670 in overtime earnings, 27 days of administrative leave, and 35 days of sick leave, and granted a promotion and two raises that resulted in a salary increase of nearly $6,000. SLGCA management changed the employee's supervisor and contacted the State Ethics Commission "for advice and counsel" upon learning about the situation.

Maryland prohibits an employee from using their position for their own personal or the gain of another person, especially if there is an observable interest in the matter from an employee or qualifying relative.

In response to the findings, the committee recommended that the SLGCA refers future salary approval issues to the State Ethics Commission and take appropriate action based on their direction.

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22 comments. Last comment 30 days ago by Cruzincat.
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Avatar
Simpsonville
United States
Member #163182
January 22, 2015
2916 Posts
Offline

What a mess.  Does some of these winnings sound like an inside job?   Hint hint.

    Avatar
    Wisconsin
    United States
    Member #123284
    February 17, 2012
    4581 Posts
    Offline

    What a mess.  Does some of these winnings sound like an inside job?   Hint hint.

    How do you "inside job" Pick 4What? (We know how Eddie Tipton did it).

      Avatar
      Simpsonville
      United States
      Member #163182
      January 22, 2015
      2916 Posts
      Offline

      How do you "inside job" Pick 4What? (We know how Eddie Tipton did it).

      Good point....tomorrow if I think or care about it will see if MD uses sucky RNG or if you what to call it CNG, that's fine.

       

      OTOH tomorrow a $1.3 million ticket set to expire in CA; Powerball secondary prize sold in Sacramento in November. 

        Avatar
        Kentucky
        United States
        Member #32651
        February 14, 2006
        9614 Posts
        Offline

        Report reveals lack of investigative procedures for high-winning individuals

        By Kate Northrop

        A report conducted by the Office of Legislative Audits in 2022 revealed security concerns that suggest possible collusion between lottery winners and vendors in the state of Maryland.

        The report, published and viewable online by the Maryland Department of Legislative Services, reviews a fiscal compliance audit of the State Lottery and Gaming Control Agency (SLGCA) between Jan. 3, 2017 and Oct. 15, 2020.

        According to the Department, the evaluation committees found that "SLGCA had not established procedures to identify and investigate individuals who won multiple high-dollar lottery prizes (in some cases 200 or more times in a year) to identify patterns of potential collusion between players and lottery related vendors or officials."

        The SLGCA is responsible for overseeing the state's lottery games and casinos, important for generating revenue for the state's multiple funds and other agencies. By extension, the SLGCA is in charge of marketing and developing lottery games, as well as regulating the ongoing operations of the state's video lottery terminals and table games.

        SLGCA records show that 362 individuals won high-dollar prizes 20 or more times during the 2020 calendar year. Of these individuals, eight of them won high-dollar prizes 200 or more times, totaling over $4.46 million in winnings alone. Two of these players won the Multi-Match game a combined 439 times for $919,300 in winnings, six players won Racetrax 1,247 times for $1.7 million, and five won the Pick 4 game 505 times for $1.6 million. One individual also won the Pick 4 top prize of $5,000 79 times.

        The prizes won by all 362 individuals totals $31.31 million paid out in 2020.

        "Based on available information, we could not readily determine whether any of the winnings cited here were not legitimate, and data relating to the total number of times these individuals played a lottery game and the extent of any losses they may have incurred was not available," the report says. "However, considering the high rates of winnings noted, SLGCA should review patterns of winning tickets to identify where they were sold and redeemed, and attempt to identify relationships between winners and other high quantity winners, lottery retailers, and SLGCA or SLGCA vendor employees."

        To mitigate the risk of possible collusion, the evaluation committee urged SLGCA to implement procedures for "routinely identifying and investigating unusually high winning rates by individual players" that may affect the legitimacy of winnings.

        Additionally, the report found evidence of nepotism within the SLGCA, where a management employee approved a nearly $5,000 salary increases for an immediate family member employed at SLCGA in May 2019. According to the report, the management employee was not the employee's supervisor, and there was no documentation justifying the pay increase.

        In another instance, an SLGCA employee directly supervised a family member also employed at SLGCA between April 2015 and February 2021. Between 2016 and 2020, the supervisor approved $7,670 in overtime earnings, 27 days of administrative leave, and 35 days of sick leave, and granted a promotion and two raises that resulted in a salary increase of nearly $6,000. SLGCA management changed the employee's supervisor and contacted the State Ethics Commission "for advice and counsel" upon learning about the situation.

        Maryland prohibits an employee from using their position for their own personal or the gain of another person, especially if there is an observable interest in the matter from an employee or qualifying relative.

        In response to the findings, the committee recommended that the SLGCA refers future salary approval issues to the State Ethics Commission and take appropriate action based on their direction.

        SLGCA records show that 362 individuals won high-dollar prizes 20 or more times during the 2020 calendar year.

        And they probably bought most of those tickets from someone that didn't want to fill out a W-2G. But it looks like SLGCA looked the other way when some people were cashing large jackpots multiple times for the real winners. 

        Forcing players to prove they bought a winning ticket or making rules against buying tickets as gifts, not much they can do to prevent it. The thing is, most of us here know why some people are cashing multiple tickets; why don't the lottery people know it too?

        "When will we ever learn?"

          itpmguru's avatar - 42a4d4d8f2a4312fb8e253dd8f6ef251
          No Man's Land
          United States
          Member #164131
          February 19, 2015
          6710 Posts
          Online

          "to identify patterns of potential collusion between players and lottery related vendors or officials."  Uh yeah, players look for patterns too....duh!  And stack47 is possibly right, some peeps trying to avoid taxes and child support by using a "ticket broker" to collect their winnings (very plausible and not the vendors involved). 

          In NC, they are the corrupt ones and only let us win when they want to.  So who is "more" wrong, players who find patterns and win big, or the lotteries who rig the drawings by pre-taping them and calculating winnings before they air a drawing?

          I sure wish the feds would investigate the NCEL (NC Extortion Lottery) as they have been taking us for a ride for years!

          In any case, you win a few times (too many) and you will catch they eye of your local lottery as a cheater no matter what.

            "Based on available information, we could not readily determine whether any of the winnings cited here were not legitimate, and data relating to the total number of times these individuals played a lottery game and the extent of any losses they may have incurred was not available,"

          So in the case of a lottery "GUILTY until proven innocent", unless they can't find anything SMH! 

          Where is Eddie Tipton when we need him to unravel this case? Green laugh


          Read up on the scam that is NCEL:   Not Live Drawings!


                                               


            Stat$talker's avatar - animated sphere.gif
            700 light yrs West of Milky Way Galaxy's Center
            United States
            Member #200642
            September 1, 2019
            2554 Posts
            Offline

            "to identify patterns of potential collusion between players and lottery related vendors or officials."  Uh yeah, players look for patterns too....duh!  And stack47 is possibly right, some peeps trying to avoid taxes and child support by using a "ticket broker" to collect their winnings (very plausible and not the vendors involved). 

            In NC, they are the corrupt ones and only let us win when they want to.  So who is "more" wrong, players who find patterns and win big, or the lotteries who rig the drawings by pre-taping them and calculating winnings before they air a drawing?

            I sure wish the feds would investigate the NCEL (NC Extortion Lottery) as they have been taking us for a ride for years!

            In any case, you win a few times (too many) and you will catch they eye of your local lottery as a cheater no matter what.

              "Based on available information, we could not readily determine whether any of the winnings cited here were not legitimate, and data relating to the total number of times these individuals played a lottery game and the extent of any losses they may have incurred was not available,"

            So in the case of a lottery "GUILTY until proven innocent", unless they can't find anything SMH! 

            Where is Eddie Tipton when we need him to unravel this case? Green laugh


            "I sure wish the feds would investigate the NCEL (NC Extortion Lottery) as they have been taking us for a ride for years!"

            Hell, the Fedz need to investigate MUSL...the Math says, drawing resultz ARE being Manipulated/ rigged..chancez are they're ALL on the take..!!

            ...MATH... The final Stochastic frontier...

            These are the Lottery Voyages of Stat$talker..!!

            The ongoing Mission,..to seek out the Laws of "Probability Math"...

             to master its rules to invoke...to Conquer ALL Major Jackpots..!!

            ...To boldly go,... Where NO Player has gone before...!!

              Avatar
              Gallatin Tennesee
              United States
              Member #194096
              November 29, 2018
              178 Posts
              Offline

              "8 people won "high dollar" prizes over 200 times." I'm no math genius, but there are only 365 days in a year. That means these people were winning a "high dollar" prize every 1.8 days. That is a mind blowing winning percentage. My question is .....how can I become one of those 8 people??

              WinkPatriotHiding Behind Computer

              Success is not final, failure is not fatal, it is the courage to continue that counts.

              .......Sir Winston Churchill

                grwurston's avatar - Lottery-062.jpg
                Same #'s, different games.
                Here
                United States
                Member #90247
                April 24, 2010
                11578 Posts
                Online

                Good point....tomorrow if I think or care about it will see if MD uses sucky RNG or if you what to call it CNG, that's fine.

                 

                OTOH tomorrow a $1.3 million ticket set to expire in CA; Powerball secondary prize sold in Sacramento in November. 

                It's all ball drawings. Except for Racetrax which is a computer animated game, where you pick horses.

                The lottery is the same way. 

                https://youtu.be/b5-iJUuPWis

                  Avatar
                  Simpsonville
                  United States
                  Member #163182
                  January 22, 2015
                  2916 Posts
                  Offline

                  "to identify patterns of potential collusion between players and lottery related vendors or officials."  Uh yeah, players look for patterns too....duh!  And stack47 is possibly right, some peeps trying to avoid taxes and child support by using a "ticket broker" to collect their winnings (very plausible and not the vendors involved). 

                  In NC, they are the corrupt ones and only let us win when they want to.  So who is "more" wrong, players who find patterns and win big, or the lotteries who rig the drawings by pre-taping them and calculating winnings before they air a drawing?

                  I sure wish the feds would investigate the NCEL (NC Extortion Lottery) as they have been taking us for a ride for years!

                  In any case, you win a few times (too many) and you will catch they eye of your local lottery as a cheater no matter what.

                    "Based on available information, we could not readily determine whether any of the winnings cited here were not legitimate, and data relating to the total number of times these individuals played a lottery game and the extent of any losses they may have incurred was not available,"

                  So in the case of a lottery "GUILTY until proven innocent", unless they can't find anything SMH! 

                  Where is Eddie Tipton when we need him to unravel this case? Green laugh


                  Kind of like Deja Vu with the Massachusetts lottery.  The MA lottery did get wise to those few individuals though.  Not good @ names, but 20/20 or one of those shows did a story on one guy who made a killing by purchasing thousands of MA lottery tickets.   I think LP did a story too.

                    Avatar
                    michigan
                    United States
                    Member #176933
                    September 2, 2016
                    853 Posts
                    Offline

                    This has FRAUD written all over it, and Maryland players should demand an investigation!!!

                      jarasan's avatar - new patrick.gif
                      Harbinger
                      Maryland
                      United States
                      Member #44102
                      July 30, 2006
                      6357 Posts
                      Offline

                      I live in Maryland, I play mostly the ball draws P4 P3 BM5 and little MM. The one that is interesting is the 2 players that won 439 times the multi match that is pretty amazing. All the others could be OK.  I believe the biggest scam in all states are ticket cashing mules, people cashing tix for people w/o SS numbers you know, like non citizens. There are millions w/o SS numbers.  I've seen it first hand, a mule at work.  In MD now you don't fill out a form you have to provide Drivers License, SS#, and phone number.  Every terminal has a unique identifier and every ticket has the terminal number printed on it, they could determine very quickly what is going on.  MD lottery is pretty good because it is mostly ball draws, the state is so so, there is grift everywhere in the three counties that ruin this state PG Mont. and Baltimore.

                      Here is what I think, all lotteries should not collect taxes on winnings Fed and State, sales would explode and the mules would be put out of business you know like they do in the rest of the world.  But the states are hooked on the tax revenue on top of the lottery profits greedy very greedy basturds.

                      FJB

                        ekem6078's avatar - Lottery-050.jpg
                        TN
                        United States
                        Member #88773
                        March 23, 2010
                        2424 Posts
                        Offline

                        I think the SLGCA is passing the winning knowledge down to family members and friends.  (Inside job, - fraud all over it).   I think members and family members of  the SLGCA should be prohibited from playing in states where they work and all states that have Ball Drawings.  Seems to me they're

                        Passing the Bucks.  If they investigate the winners they would probably find out that, alot of the winners had association family members work for the SLGCA.   JMO.   

                         

                         

                          jarasan's avatar - new patrick.gif
                          Harbinger
                          Maryland
                          United States
                          Member #44102
                          July 30, 2006
                          6357 Posts
                          Offline

                          I think the SLGCA is passing the winning knowledge down to family members and friends.  (Inside job, - fraud all over it).   I think members and family members of  the SLGCA should be prohibited from playing in states where they work and all states that have Ball Drawings.  Seems to me they're

                          Passing the Bucks.  If they investigate the winners they would probably find out that, alot of the winners had association family members work for the SLGCA.   JMO.   

                           

                           

                          They are ball draws, very hard to pull off. Keno and Race Track maybe... See Ya!

                          FJB

                            itpmguru's avatar - 42a4d4d8f2a4312fb8e253dd8f6ef251
                            No Man's Land
                            United States
                            Member #164131
                            February 19, 2015
                            6710 Posts
                            Online

                            They are ball draws, very hard to pull off. Keno and Race Track maybe... See Ya!

                            Not hard to rig it is they pre-tape drawing like they do in NC. They close the draw and allow time enough to calculate what they might pay out, then run a piece of video with that drawing. Not hard to pull off, they just solan it out.

                            Read up on the scam that is NCEL:   Not Live Drawings!