Lottery-Fixing Probe Expands to More States

By John KellContributing Writer and author of CIO Intelligence
John KellContributing Writer and author of CIO Intelligence

    John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

    A man purchases New York State Lottery tickets for the $400 million Powerball lottery in New York's financial district
    A man purchases New York State Lottery tickets for the $400 million Powerball lottery in New York's financial district February 19, 2014. The U.S. Powerball jackpot rose to $400 million on Sunday, one of the largest prizes in the lottery's history, the next drawing is February 19. REUTERS/Brendan McDermid (UNITED STATES - Tags: SOCIETY) - RTX194TO
    Photograph by Brendan McDermid — Reuters

    Investigators have asked states to review jackpots produced by the number-generators to determine if lottery drawings were tampered beyond a fraud case that is linked to four states.

    The inquiry stems from a case involving Eddie Tipton, the former security director of the Multi-State Lottery Association who had been convicted of fraud for fixing one jackpot in Iowa. Prosecutors say his scheme extended beyond that case, as he’s accused of tampering with lottery drawings in four states over six years.

    Americans spent $70.15 billion on lottery tickets in 2014, CNN reported, citing the North American Association of State and Provincial Lotteries. And a lot of jackpots could potentially be involved in the probe – because as the Associated Press notes, 37 states and U.S. territories use random-number generators from the Iowa-based association.

    AP adds that three states have confirmed paying jackpots valued at a total of $8 million allegedly linked to Tipton and associates.