December 18 2015
The allegations read like a movie plot: a lottery industry insider installs undetectable software giving him advance knowledge of winning numbers, then enlists accomplices to play those numbers and collect the jackpots. And they secretly enrich themselves for years — until a misstep exposes them.
Eddie Tipton, former security director of the Multi-State Lottery Association, has been convicted of fraud for fixing one jackpot in Des Moines, but prosecutors say his high-tech scheme extended far beyond Iowa. He’s accused of tampering with lottery drawings in four states over six years, and investigators are expanding their inquiry nationwide.
The inquiry is sending a chill through state governments that depend on public confidence in contests that generate $20 billion annually in lottery revenue.