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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.”

Conferences in Europe

ITL Spain head to Madrid for the largest gaming exhibition in the Spanish calendar

Published

30 mins ago

April 23, 2024

George Miller

ITL Spain head to Madrid for the largest gaming exhibition in the Spanish calendar

Reading Time: 2 minutes

Innovative Technology (ITL) have announced their participation at the largest global network of gaming professionals in Spain. From 7-9 May 2024, Madrid will become the centre of the Spanish gaming industry, celebrating the 40th anniversary of Feria Internacional del Juego (FIJMA).

FIJMA is the most important event in the leisure and gaming industry in Spain where the main companies, manufacturers and experts in the industry gather to learn about the latest slots and gaming equipment innovations. The Spanish team at ITL will be exhibiting their solutions on stand A49 and plan to have their latest note recyclers and coin handling products centre stage, as well as demonstrating how their biometrics solutions can be utilised to benefit the gaming industry to prevent underage gambling.

Jose Garcia Escudero, General Manager for ITL Spain said, “We are looking forward to showing how combining our compact note recycler (NV22 Spectral) and advanced coin recycler (SMART Coin System) gives the best fit for cash handling efficiency for gaming machines in Spain. These solutions now dominate the Spanish gaming market giving operators considerable float management savings, fewer refills, and a massive reduction in coin starvation for improved machine uptime. We’ll also show the new NV4000 mixed denomination note recycler to the Spanish gaming market for the first time, ideal for high volume applications like change and redemption terminals.”

ITL have a range of AI-powered biometric solutions which perform accurate age verification at gaming venue entrances or integrated in gaming machines.

Continuing Jose said, “We will also have our age check devices on the stand for visitors to demo which can help operators prevent someone potentially underage or even self-excluded trying to play a machine or access an age restricted area. ICU Lite can be fully integrated in a gaming machine or betting terminal to automatically estimate age to prevent minors from playing. MyCheckr can be utilised at 18+ entrances to prevent access. Both devices have a one-off cost with no subscriptions and no internet required. Our technology is affordable, available to all and trusted, with no biometric personal data stored.”

Concluding Jose said, “We have very strong relationships with the Spanish market and we’re proud to know that our products will be displayed on a number of stands from our long standing customers. We’re looking forward to seeing everyone in person in Madrid and we welcome you all to stand A49.”

Latest News

NetBet Denmark joins forces with Wazdan

Published

1 hour ago

April 23, 2024

George Miller

Reading Time: < 1 minute

NetBet Denmark, a leading name in the iGaming sector, has signed an agreement with Wazdan as it continues to expand its portfolio of the industry’s finest games.

As part of this newly forged partnership, NetBet Denmark is set to integrate the full spectrum of Wazdan’s cutting-edge games into its platform. Players at NetBet can now enjoy an array of engaging titles, including popular offerings such as 9 Coins™ Grand Diamond Edition, Mighty Wild™: Panther, and 16 Coins™.

This collaboration aligns with the operator’s mission to provide its players with an unparalleled gaming environment, marked by innovation and a diverse selection of top-quality games.

Players at NetBet can seamlessly access and enjoy the new additions to their gaming repertoire by visiting the official NetBet Denmark website. The integration of Wazdan’s games is expected to enhance the overall gaming experience for players, offering them a broader selection of titles that cater to various preferences and playstyles.

Claudia Georgevici, PR Manager at NetBet Denmark, said: “Wazdan has come a long way since its founding back in 2010, developing rapidly to propel the company to the forefront of the iGaming industry. As well as innovation, the company has always prioritised enjoyment and responsible gambling in equal measure – making them an ideal partner to help NetBet expand our operations in the Danish market.”

Andrzej Hyla, Chief Commercial Officer at Wazdan, said: “It brings us great excitement to forge a partnership with NetBet, a well-established presence in the thriving landscape of Danish iGaming. The potential in Denmark is vast, and our collaboration with NetBet is poised to fortify our standing in this dynamic market.”

NetBet players can now explore the thrilling new titles from Wazdan by visiting the official NetBet Denmark website.

Latest News

Pariplay® adds Kero Gaming Micro Betting Product Suite to Fusion® platform

Published

1 hour ago

April 23, 2024

George Miller

Pariplay® adds Kero Gaming Micro Betting Product Suite to Fusion® platform

Reading Time: 2 minutes

NeoGames S.A subsidiary Pariplay®, the leading aggregator and content provider, has further enhanced its Fusion® platform offering through its latest partnership with Kero Gaming (“Kero”), which will see sports betting options added to the aggregator for the first time.

Kero, a leading supplier of micro betting data feeds, products and services will integrate its full product suite onto the Fusion platform. The Kero platform allows players to watch, bet and chat by combining dynamic, next-play betting markets, live chat for player socialization and the live stream of any match into a single entertainment destination within the sportsbook.Kero’s micro betting technology is uniquely powered by a recommendation engine that leverages proprietary algorithms to create contextually relevant betting markets that are delivered to players, creating a casino style sports betting experience where players can bet on any individual play or moment throughout the course of every match.

The latest provider relationship boosts the wide variety of content available on the rapidly expanding Fusion® platform into the sports betting sphere as Pariplay® maintains its focus on providing enhanced entertainment value for players in regulated markets worldwide.

The Fusion® aggregation offering features over 14,000 games from more than 150 of the industry’s leading game developers and a suite of back-office conversion and retention tools that enhance player value.

Ashley Bloor, Director of Partnerships at Pariplay®, said: “Our content deal with Kero Gaming Inc. demonstrates our position as one of the world’s pioneering gaming aggregators and we are thrilled to be welcoming its portfolio onto the Fusion® platform.

“With both parties solidifying themselves as visionary forces in the industry, we are confident the partnership will spearhead success as we branch into new sports betting technologies and will resonate with players globally.”

Tomash Devenishek, CEO at Kero Gaming Inc., added: “We at Kero are continually striving to innovate and enhance the sports fan experience by integrating our advanced recommendation technology with real-time micro markets. Pariplay stands out as a leader, powering some of the most renowned global brands. Our shared clientele lays a solid foundation for this collaboration.

“This partnership represents a significant stride towards delivering exceptional sports betting products globally. We are thrilled to embark on this journey with Pariplay as our partner.”