The Tennessee Education Lottery Corp. has received nearly $1 million from a pair of technology companies it blamed for software glitches that resulted in the sale of about $2 million worth of unwinnable tickets in 2007.
(See Tennessee Lottery computerized drawings flawed since inception, Lottery Post, Aug. 21, 2007.)
The computer program that Smartplay International and Gaming Laboratories International came up with for games such as Cash 3 and Cash 4 was flawed and resulted in thousands of unwinnable tickets being sold to state residents. The program did not allow duplicate digits to appear, and gamblers who picked duplicate digits could not win.
The lottery gave refunds to those who bought unwinnable tickets and sued the software companies for damages in federal court in October 2008. The case was settled last week with the companies paying the state lottery a combined $900,000.
"We're delighted the matter is resolved," said Aubrey Harwell Jr., one of the attorneys who represented the lottery in the lawsuit.
Officials and attorneys for Smartplay and Gaming Laboratories did not respond to multiple requests for comment. The companies had fought to keep the settlement confidential even though the lottery is a quasi-governmental entity subject to open records laws.
Wanda Wilson, executive vice president and general counsel for the Tennessee Education Lottery Association, said the settlement money will be added to proceeds used to pay for scholarships and after-school programs across the state this year.
Last year, the lottery spent a record $293.5 million on its education programs and is expected to set another record this year. The lottery had a reserve of $364 million as of June 30.
No effect on scholarship cuts
Last month, lawmakers hoping to stabilize the lottery fund approved a plan that would cut in half the scholarships that go to students on the cusp of qualifying for the lottery's HOPE scholarships and Aspire grants.
Wilson said the $900,000 settlement won't influence those discussions.
"This one-time settlement amount, while welcome and headed for good use, will only modestly impact these overall figures," she said.
A chronology of Tennessee Lottery computerized drawings
Below is a sampling of news stories appearing at Lottery Post during the pivotal period of time when the Tennessee Lottery switched to computerized drawings. In many respects, the lottery has not fully recovered since that fateful decision.
- Tennessee Lottery threatens to go computerized
(Jul 16, 2007) - Tenn. Lottery players complaining over switch from numbered balls
(Aug 8, 2007) - Tennessee Lottery computerized drawings flawed since inception
(Aug 21, 2007) - Tennessee Lottery glitch shuts out players
(Aug 22, 2007) - Players warned lottery about tickets flaw
(Aug 23, 2007) - Tenn Lottery spokeswoman said no chance of drawing error
(Aug 23, 2007) - Engineer reported bad Tenn. Lottery computerized draws
(Aug 24, 2007) - Official wants fraud probe of Tennessee Lottery (Aug 28, 2007)
- Tenn. Lottery says duplicate numbers drawn were legit; can we be sure?
(Aug 31, 2007) - Newspaper Editorial: Biggest error was switching to computerized draws
(Sep 2, 2007) - Tenn. Lottery CEO breaks silence on drawing errors
(Sep 2, 2007) - Lottery 'glitch' leaves players suspicious
(Sep 2, 2007) - Tenn. Lottery: Curse of the computerized drawings?
(Sep 13, 2007)
Also: All Tennessee Lottery News Stories
Thanks to Helen for the tip.
I remember posting about hidden errors that can occur without anybody noticing WAY Before these drawing errors were ever confirmed. For example, here's a post I made on Aug. 8, 2007 that talks about hidden errors in computerized drawings that can go on for a long time before anyone notices.
There is absolutely no legitimate reason for a lottery to go to computerized drawings, other than their perception that it will be "easier" for them to manage. Computerized drawings are a huge mistake, especially when it comes to the need to bring in huge sums of money every year based on player confidence and trust.
Two words: Inadequate Testing
Any time new or updated software is released, thorough testing in a real time environment is mandatory. If they would have run adequate test runs they would have discovered the problem. As is often the case with modern software projects, poor quality control and inadequate testing results in unforseen errors that should have be caught and fixed before release.
From some of the posts I read at that time, I doubt if everyone who bought doubles and triples was aware that the state was offering to give them their money back.
Can't wait for ridge to post on this.
Tear them them up ridge.
Tennessee seems to be one of the worst states for random draws. i wonder how many other states have had this
problem.
I dont believe none of their payouts or wins.After 5 years of studing I should get aleast 1 hit a year.
Does this mean I get a refund on all my losing tickets?
I don't typically comment on an article unless it is of extreme value. I have one commnet.
SMH
What about the ones that throwed their tickets away?
They are the ones that got robbed.
The lottery already did their little "giveback" to lottery players who got robbed during that period: https://www.lotterypost.com/news/165397
If you check the middle of that article, you will see the amounts the lottery "gave back" to players.
Remember, this event took place 4 years ago.
(Edit: I guess I can't count very well -- I changed the article headline to say "FOUR" years ago, not five. Duh.)
well i was there during that time and unless you kept your tickets you got nothing.. I think Tenn.. got way too much money for the money that they gave back..
I think you hit the nail right on the head.
I wasn't playing any cash 3 or 4 then -- or now, really so I don't know all the details but it's sounds like they straight didn't give a flock!
I would give anything to play online with another state.Tennessee would fold.Yea they raised the most because they dont give back.Look at the So called payouts in December to the rest of the year....What,did she have some kind of Phiphany for the players?She know shes a crook.And we all know it too.
Ridge must be on vacation,I cant wait for his reply.It is going to be so funny but true.
The same applies if you should win and later want to subtract your loses from your taxes too, you need proof you played.
In one of those links Todd posted is a discussion about an email received by an LP from the Tn Lottery assuring them that test draws had been run and doubles were drawn during the tests. According to the statement made by the Tn Lottery after the glitch was found, it was impossible for any digit to repeat.
While the glitch was reported to be human error, it was covered up because of all the opponents of computerized drawings. It clearly showed glitches could occur whether by design or by accident. The profits go into an education fund and they are now complaining about the drop in profits so it makes one wonder if there hasn't been other "glitches" undiscovered to boost their profit margin.
Every Dog has their day.I've lost Thousands from 2007-2010 believe me they know what they are doing down there and getting by with it.
As I've said a few times before, Tennessee is the backwater swamp of all state lotteries and that is what it will remain until we drain the swamp in Nashville. And I don't know if that's possible. The current crop of RINO's in our state legislature are no more responsive than were the Democrats to public opinion on the Lottery. They rely on the apple polishers and fawning sycophants in the Lottery Dept. hierarchy to discern what the players want. And neither speak for us.
None of them really give 2 shts about what we want. Having her druthers, the Director would likely tell the players to STFU and mind your own business. That's the prevailing attitude. They couldn't care less that we don't want computer "draws." They couldn't care less about our complaints. They couldn't care less about our input. They couldn't care less about our advice or counsel or concerns or anything. They have grown big heads and are beyond listening or even thinking that we could add anything intelligent to the coversation. They're Big Shots. They're Royalty.
We appear to be saddled with this Lottery Administration for the foreseeable future unless enough players unite and stop buying tickets. And the problem there is that the state makes most of its money off of Scratch Tickets and the Scratch Ticket players aren't going to stop buying tickets to support the Terminal Ticket players in a move to go back to real ball drawings. It just ain't gonna happen.
So it appears all we can do is continue to play in other states and b*tch about it every chance we get.
Maybe some day they'll listen.
Hey Rebecca! We want to go back to real ball drawings!
Did you hear that?
Can you hear me now?
Didn't think so.
Roger that.
This one topped it all Ridge ,spoken like a true smart azz.LOL....I'm going to Georgia Friday YAH...Buy my Powerball and Mega Millions.I hope I win so I
can rub it in her nose.A Tennessee player won in Georgia.
I have my TN tickets...but I also have my multi draw tickets from GA, NC and SC.
TN never gets any major win love so I like to look elsewhere too.
I'll have to get to Metropolis soon to throw some dice at Harrahs so I can refill my KY And IL ticket multi draw tickets too.