Latest News

News from overseas: Mastermind of lottery fraud admits he rigged jackpots

Published

7 years ago

July 11, 2017

Reading Time: 3 minutes

A man who helped write the computer code behind several U.S. lotteries, including some of its biggest, pleaded guilty last month to masterminding a scheme through which he rigged the winning numbers for jackpots in several states and collected millions of dollars.

Eddie Tipton, who worked for the Multi-State Lottery Association from 2003 until 2015 and was its computer information security director for his last two years there, appeared in a Des Moines courtroom, where he pleaded guilty to one count of ongoing criminal conduct and publicly acknowledged his lead role in the scheme for the first time.

“I wrote software that included code that allowed me to understand or technically predict winning numbers, and I gave those numbers to other individuals who then won the lottery and shared the winnings with me,” said Tipton.

Tipton, 54, said that when he wrote the code, he believed he was taking advantage of a loophole in the random number software and he didn’t think it was illegal.

Investigators say Tipton installed code that let the computers work as should on all but three days of the year — May 27, Nov. 22 and Dec. 29 — when they would produce predictable numbers if the drawings occurred on Wednesdays or Saturdays after 8 p.m.

Tipton admitted in court that he provided cohorts with the winning numbers for jackpots in Colorado in 2005, Wisconsin in December of 2007, Kansas in December of 2010 and Oklahoma in 2011.

The group, which included Tipton’s brother Tommy Tipton and a friend, Texas businessman Robert Rhodes, also attempted to collect a $16.5 million Hot Lotto ticket in December 2010 in Iowa, but Iowa lottery officials refused to pay it because the men tried to cash it anonymously. Iowa rules require the buyer and owner of the ticket to be made public.

That led to an investigation into a potential lottery fraud. Once Tipton was identified as a possible suspect, investigators began checking for connections to other winning games and zeroed in on winnings connected to Tipton, his brother, and Rhodes in the other states.

Tipton’s plea deal resolves his legal situation in all of the affected states. He could get up to 25 years in prison when he’s sentenced. A date hasn’t been set and he remains free on bond.

Immediately after Tipton’s hearing, his brother pleaded guilty to charges of conspiracy to commit theft by deception.

“My brother did provide me with numbers to play in Colorado and Oklahoma lotteries and he told me that it was illegal for him to play the lotteries but gave me the numbers to play,” Tommy Tipton said.

Tipton, a 53-year-old former Texas magistrate judge and a law enforcement officer, said he’s now unemployed and must sell part of his farm to pay the $800,000 in restitution that the judge ordered.

“That is financially effectively going to more than wipe him out,” said his attorney, Mark Weinhardt. “Mr. Eddie Tipton does not have the resources to satisfy restitution in any meaningful degree. Mr. Tommy Tipton does and this will effectively take all of his assets.”

Rob Sand, the assistant state attorney general who prosecuted the case, said after the hearing that it appears much of the stolen money is gone.

“As is the case in many financial crimes, the individuals who obtain the money usually spend it, thereafter leaving only margins of it to be recovered later. I think were in better shape in this case than we are in many cases, though,” he said.

Sand said the scheme resulted in payouts of $2.2 million and he has demanded repayment through restitution from the Tipton brothers and Rhodes.

Rhodes, of Sugar Land, Texas, bought winning numbers for drawings in Colorado, Wisconsin, Iowa, Kansas, and Oklahoma between 2005 and 2011. He earlier pleaded guilty to being party to a computer crime and awaits sentencing.

Iowa Lottery CEO Terry Rich said information learned in the Tipton case has helped improve lottery security.

The scandal has led to a consumer fraud lawsuit against the Urbandale, Iowa-based Multi-State Lottery Association. The association serves lotteries in 33 states the District of Columbia, Puerto Rico and the U.S. Virgin Islands, and provides the computers used to randomly draw numbers in several games including Powerball, Mega Millions and Hot Lotto, among other games.

Sand said there’s a simple moral to the story: “Thou shall not steal,” he said. “I mean small steps down a darkened path can lead a long way for somebody from where they think they’re going to be from where they end up.”

Latest News

Catena Media Announces Board Changes

Published

4 mins ago

November 22, 2024

Niji Narayan

Reading Time: < 1 minute

Catena Media’s board of directors announced the appointment of Stephen Taylor-Matthews as non-executive director and the departure of Øystein Engebretsen from the board of directors.

Based in London, Stephen Taylor-Matthews is a tech entrepreneur, executive advisor and investor with over two decades of experience in online gaming, sports betting and data analytics.

He is the founder of Polynate, an AI-first company delivering next-generation sports engagement solutions, and has worked at Underdog Fantasy, GoatGaming and Betgenius in previous roles.

Stephen Taylor-Matthews commented: “Catena Media is in a transformation phase and I’m excited to be joining the board at this juncture and to contributing my industry expertise and insight.”

The appointment coincides with the departure from the board of Øystein Engebretsen, who has served as non-executive director since September 2018.

Erik Flinck, Chairman of the Board of Directors, said: “Øystein has made a valuable and important contribution to Catena Media for more than six years. I warmly thank him for his efforts and wish him well in his current and future ventures. At the same time, I am delighted to welcome Stephen Taylor-Matthews to the board. His experience and expertise will be a valuable asset for Catena Media as we move forward.”

Stephen Taylor-Matthews’ appointment will become effective once all necessary filings are made with the Malta Business Registry, and his term will run up until the end of the next annual general meeting, in accordance with the Maltese Companies Act and Catena Media’s articles of association.

Latest News

Endorphina Partners with R. Franco Digital to Expand Reach

Published

5 mins ago

November 22, 2024

George Miller

Endorphina Partners with R. Franco Digital to Expand Reach

Reading Time: 2 minutes

The leading online slot games provider, Endorphina, has announced a brand-new partnership with R. Franco Digital, a renowned manufacturer of AWP machines. This collaboration allows Endorphina to expand its reach in the Spanish and Latin American markets.

Endorphina is one of the top iGaming software providers for the B2B market, developing online slots that cater to a wide range of slot enthusiasts. Over the years, the provider has established itself as one of the most innovative slot suppliers in the industry, dedicated to expanding its products to players worldwide.

Zdenek Llosa, Senior Partnership Manager at Endorphina, said: “We are genuinely excited to join forces with R. Franco Digital, a trusted name with a rich legacy in the Spanish and Latin American gaming world. Partnering with a platform that shares our passion for quality and player satisfaction is truly inspiring. Together with the R. Franco team, we look forward to creating memorable, fun experiences that bring joy and excitement to our shared communities across Spain and LATAM. This collaboration feels like the beginning of something truly special.”

Franco Digital, a subsidiary of the Recreativos Franco Group, has been known for providing its customers with the best turnkey solutions for over 50 years. As a pioneering manufacturer of AWP machines, R. Franco Digital is founded on an innovative company culture that uses the best methodologies and technologies available, working with talented and disruptive people to deliver the best solutions.

“At R. Franco Digital, we are always striving to enhance our platform with innovative, top-quality content that resonates with our audiences, particularly in Spain and Latin America. Partnering with Endorphina allows us to bring a fresh, engaging catalog of games to our players, combining our platform’s power with Endorphina’s creativity and expertise. This collaboration underscores our commitment to delivering premium gaming experiences tailored for Spanish-speaking markets,” said Javier Sacristán, International Business Director of R. Franco Digital.

Balkans

CT Interactive to Showcase Innovative Gaming Solutions at BEGE 2024

Published

7 mins ago

November 22, 2024

Niji Narayan

Reading Time: < 1 minute

CT Interactive is going to showcase its innovative gaming solutions at BEGE, which will take place on November 27-28, 2024, at the Inter Expo Center in Sofia, Bulgaria. The company will present at stand 3.15А its top-notch slot catalogue featuring cutting-edge mechanics and engaging gameplay designed to appeal to various players.

Silvia Hristova, CT Interactive’s CPSO, stated: “We are excited to participate in BEGE, a central event for the gaming industry in Europe. This year, CT Interactive is showcasing a selection of games tailored to meet the evolving needs of our partners and engage players with innovative and localised content. BEGE offers a unique opportunity to connect with industry leaders, strengthen our relationships, and explore new growth opportunities in this dynamic region.

“We look forward to sharing our latest advancements and demonstrating our commitment to creating high-quality gaming experiences.”

The CT Interactive team at the expo will include Lachezar Petrov (CEO), Monika Zlateva (CCO), Silvia Hristova (CPSO), Antonio Donov (HBD EMEA & Asia), Kiril Kirilov (AM).

BEGE brings together manufacturers, online operators, affiliates, payment service providers and media professionals. This year’s exhibition will feature numerous companies from the gaming industry, showcasing their latest products, services and groundbreaking solutions.

Latest News2 days ago

Make every pixel personal: Opera GX facelift lets you match your browser to your setup down to the smallest detail

Latest News2 days ago

Casino Management System Market to Reach USD 29.09 Billion by 2032 | Enhanced Security and Operational Efficiency Drive Growth | Research by S&S Insider