MUSL settles lawsuit with man who won Hot Lotto jackpot marred by rigging

MUSL settles lawsuit with man who won Hot Lotto jackpot marred by rigging

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Insider BuzzInsider Buzz: MUSL settles lawsuit with man who won Hot Lotto jackpot marred by rigging



A countrywide lottery crew rocked by an insider’s jackpot-rigging conspiracy has settled a lawsuit introduced by an Iowa grandfather who mentioned a $nine million prize he won in 2011 will have to were a ways higher.

The Multi-State Lottery Association and Larry Dawson knowledgeable a pass judgement on of the agreement this month, canceling a tribulation that have been scheduled to start subsequent week in Des Moines.

Dawson’s legal professional, Nicholas Mauro, mentioned that the phrases of the deal are confidential however that his consumer is relieved that the long-running litigation is over.

A spokeswoman for the affiliation, which is based totally in Iowa and is owned by dozens of state lotteries, hasn’t returned messages searching for remark.

Dawson, a monetary adviser who lives in Webster City, won a $nine million Hot Lotto jackpot in 2011 and took the $6 million pre-tax money payout. He fortunately claimed the prize, surrounded by his spouse, kids and grandchildren.

But years later, he realized that the sport’s earlier $16.Five million jackpot have been rigged by Eddie Tipton, the lottery affiliation’s knowledge safety director, as a part of an enormous fraud scheme.

Dawson, 66, filed a lawsuit in 2016 alleging that the $16.Five million will have to have carried over to the prize he won beneath Hot Lotto’s regulations. His lawsuit sought $10 million — which might were the scale of the lump sum money possibility — plus pastime.

In May, a pass judgement on ordered a jury trial, wherein Dawson may just search a bigger prize.

The agreement is the second one in contemporary months to get to the bottom of criminal claims alleging that the affiliation’s lax safety allowed Tipton’s fraud to happen and cheated avid gamers. The affiliation agreed to pay $four.three million to settle a class-action lawsuit that can give refunds to avid gamers who bought tickets for tainted drawings between 2005 and 2013.

In resolving his case, Dawson will disregard his claims in opposition to the Iowa Lottery. Iowa Lottery CEO Matt Strawn mentioned no state or Iowa lottery cash might be used to fund the agreement.

“The settlement between the Multi-State Lottery Association and Mr. Dawson closes a chapter in lottery history that tested” the integrity of lottery video games, he mentioned. Iowa officers “passed this test” by investigating, uncovering and prosecuting Tipton’s fraud, Strawn mentioned.

Tipton secretly put in code in instrument used by lotteries that allowed him to are expecting profitable quantity combos on sure days of the yr. For years, he labored with his brother and different pals to buy profitable tickets and declare prizes across the nation. A pass judgement on sentenced him in 2017 to as much as 25 years in jail.

Tipton’s downfall started after he bought a profitable price ticket for the $16.Five million Hot Lotto jackpot at a fuel station close to the affiliation’s place of job in December 2010. He used to be known by surprised colleagues as the patron after investigators launched surveillance pictures of the acquisition years later. Tipton handed the price ticket to pals however the Iowa Lottery refused to pay after legal professionals for a consider declined to show who bought the profitable price ticket. (See Timeline of the most important crime in US lottery historical past beneath.)

The cash in the long run went again to the 16 states that operated the Hot Lotto as an “unclaimed prize.” Dawson’s lawsuit alleged that the jackpot will have to have carried ahead, arguing states do not need gotten a providence for failing to function a good and safe sport.

Iowa Lottery’s earlier CEO, Terry Rich, accused Dawson of seeking to “rewrite history,” announcing it used to be not possible to grasp what would have took place if the prize had carried over.

Dawson — nicknamed “Lucky Larry” for his golfing sport — mentioned he purchased $19 in tickets for each and every bi-weekly drawing so he may just duvet all 19 “Hot Ball” choices, after studying a ebook claiming to have the secrets and techniques to profitable lotteries.

Timeline of the most important crime in US lottery historical past

The following is a compilation of Lottery Post information protection chronicling the Hot Lotto thriller and due to this fact found out crime.

We get started the timeline with a information tale indicating that most effective three months remained for the $16 million Hot Lotto jackpot to be claimed.



  • Iowa Lottery safety leader bent on figuring out id of jackpot winner, Jan. 10, 2012
  • NY legal professional in lottery thriller travels to Iowa this week, Jan. 17, 2012
  • Iowa Lottery safety leader to grill NY legal professional over Hot Lotto price ticket, Jan. 17, 2012
  • Representative of Hot Lotto winner named in lawsuit, Jan. 20, 2012
  • Hot Lotto consider consultant won’t title winner, Jan. 20, 2012
  • Iowa Lottery threatens to disclaim jackpot payout if winner remains nameless, Jan. 23, 2012
  • Lawyer offers up $14 million Iowa lottery price ticket declare, Jan. 26, 2012
  • $14.three million Hot Lotto prize declare withdrawn, Jan. 27, 2012
  • Iowa Legislators happy with Lottery’s dealing with of puzzle jackpot winner, Feb. 1, 2012
  • Iowa Lottery to provide away tens of millions from jackpot thriller, Feb. 26, 2012
  • Iowa Lottery director: 50-50 that Hot Lotto thriller might be solved, Aug. nine, 2012
  • Iowa officers seeking to clear up lotto thriller, would possibly unlock surveillance video, Aug. 19, 2012




  • MUSL worker arrested in Hot Lotto jackpot thriller, Jan. 15, 2015
  • BOMBSHELL: MUSL worker may have rigged Hot Lotto automated drawing, Apr. 13, 2015
  • Texas man charged in Iowa lottery case contests extradition, Apr. 20, 2015
  • Extradition trial starts this week in $16.5M Hot Lotto fraud case, Jun. 7, 2015
  • Inside the most important lottery rip-off ever, Jul. 7, 2015
  • Trial underway in global’s largest lottery fraud case, Jul. 14, 2015
  • Lottery safety leader: Rigging automated sport “sadly” conceivable, Jul. 15, 2015
  • Prosecution rests in Hot Lotto trial, Jul. 16, 2015
  • Defense temporarily wraps up in Hot Lotto trial, Jul. 16, 2015
  • Hot Lotto case strikes to jury for deliberations, Jul. 17, 2015
  • Former lottery safety worker to blame of rigging $14.3M drawing, Jul. 20, 2015
  • MUSL safety employee who rigged drawing will get 10 years, Sep. nine, 2015
  • Texas government had in the past investigated brother of lottery cheat, Oct. 14, 2015
  • Another $1.2M Hot Lotto jackpot rigged by Tipton, officers say, Nov. 21, 2015
  • Jackpot-fixing investigation expands to extra state lotteries, Dec. 18, 2015
  • Prosecutors say Tipton rigged two jackpots he bought tickets for in Kansas, Dec. 21, 2015
  • Maine offers names of Hot Lotto winners to Iowa workforce taking a look into rigging scheme, Dec. 23, 2015
  • S.C. Lottery assures public no automated drawings utilized in state, Dec. 23, 2015
  • Kansas lottery avid gamers wondering sport’s integrity, Dec. 23, 2015
  • Lottery scandal not going to have an effect on New Mexico, legitimate says, Dec. 26, 2015
  • Tipton granted extend in subsequent trial till July, Dec. 29, 2015


  • Iowa Lottery CEO Terry Rich to reply to lottery participant questions are living Monday night time, Jan. 11, 2016
  • First lawsuit in state lottery-fixing scandal seeks tens of millions, Feb. four, 2016
  • MUSL seeks to disregard lawsuit over rigged jackpot, Apr. 1, 2016
  • Lottery scammer’s brother dealing with prison fees, Apr. 6, 2016
  • Investigators to find Tipton’s instrument code to rig automated lottery drawings, Apr. 7, 2016
  • Lottery rigging scandal activates safety audit in South Dakota, Apr. 13, 2016
  • Preliminary listening to rescheduled for Tommy Tipton in lottery rigging case, Apr. 22, 2016
  • Third suspect surrenders in nationwide lottery rigging scandal, Apr. 28, 2016
  • Lottery rip-off investigation involves Tennessee, May 11, 2016
  • Investigators to find any other pal of Tipton who cashed rigged lottery prize, May 11, 2016
  • Convicted automated drawing fraudster argues Iowa court docket enchantment, Jun. 16, 2016
  • US Senate panel calls for information in lottery scandal, Jun. 22, 2016
  • Lottery rigging trial to be moved out of Des Moines, Jun. 27, 2016
  • Eddie Tipton’s new trial behind schedule till 2017, Jul. 1, 2016
  • Iowa court docket reverses a part of Tipton’s lottery fraud conviction, Jul. 28, 2016
  • Internal investigation concludes Tipton acted on my own to rig lottery drawings, Aug. 10, 2016
  • Prosecutors say 2 extra males is also connected to lottery riggings, Aug. 24, 2016
  • Judge: winner’s lawsuit in lottery-fixing case can proceed, Oct. 13, 2016
  • Alleged lottery scandal conspirator to go into new plea, Nov. 14, 2016
  • Accused lottery rigger Eddie Tipton dealing with new Wisconsin fees, Dec. 22, 2016


  • Man recordsdata lawsuit over rigged lottery jackpots, Jan. four, 2017
  • Trials for Tipton brothers charged in lottery scandal behind schedule, Jan. eight, 2017
  • Former MUSL legitimate won severance amid lottery jackpot scandal, Jan. 10, 2017
  • Texas man pleads to blame to fraud in lottery scandal case, Jan. 11, 2017
  • Iowa Supreme Court hears lottery rigging case, Feb. 14, 2017
  • Kansas recordsdata lawsuit in opposition to accused lottery rigger, Mar. 16, 2017
  • Best pal to testify in opposition to Tipton at July lottery rigging trial, Mar. 31, 2017
  • Mastermind of lottery fraud will provide an explanation for how he rigged jackpots, Jun. 12, 2017
  • FBI overlooked rigged jackpot in 2006 prior to lottery scheme grew, Jun. 19, 2017
  • The Five lottery jackpots Tipton and his buddies stole, Jun. 20, 2017
  • Lottery jackpot rigger’s Iowa convictions pushed aside, Jun. 23, 2017
  • IT’S OFFICIAL: Tipton pleads to blame to rigging automated lottery drawings, Jun. 29, 2017
  • Lottery rigging associate used Wisconsin payout for offshore tax rip-off, Jul. 6, 2017
  • Hot Lotto multi-state lottery sport to finish in October, Aug. nine, 2017
  • Lottery rigging mastermind sentenced to 25 years in jail, Aug. 22, 2017
  • Winner sues Colorado Lottery 12 years after rigged drawing, Oct. Five, 2017


  • Lottery scammer rigged extra drawings than first idea, information display, Feb. 19, 2018
  • How a gaming geek with a checkered previous pulled off the most important lottery rip-off in U.S. historical past, Mar. 16, 2018
  • Infamous lottery scammer says US automated lottery drawings stay fatally incorrect, Mar. 19, 2018
  • Iowa Lottery wins International Gaming-Compliance award for paintings in lottery rigging investigation, Apr. 19, 2018
  • The man who cracked the lottery, May three, 2018
  • Memo: Iowa Lottery saved promoting video games after safety caution, Aug. 1, 2018
  • Investigation reveals lottery scamming Tipton brothers have repaid just about not anything, Dec. 27, 2018


  • Lawyers search to depose lottery fraud mastermind in jail, Jan. 21, 2019
  • Iowa lottery lawsuit granted category motion, affecting 7.2 million tickets in 19 states, Jan. 28, 2019
  • Colorado man who unwittingly cut up a $four.8M jackpot with scammer is preventing the Colorado Lottery, Apr. 15, 2019
  • Lottery-scamming brothers steer clear of asset seizures by moving assets to their mom, Apr. 29, 2019
  • Lottery winner can search larger prize at trial, pass judgement on regulations, May 17, 2019
  • Court rejects Colorado man’s declare to complete $four.8M lottery jackpot he unwittingly cut up with scammers, Jun. 21, 2019
  • Lottery losers may just receives a commission after lottery rip-off lawsuit settles for $four.three million, Jul. 22, 2019
  • Journalist faces subpoena in lawsuit over lottery scandal, Aug. 28, 2019
  • Lawyers drop request for creator’s lottery scandal ebook notes, Aug. 28, 2019
  • Website now accepting claims in $four.three million lottery rip-off agreement, Sep. nine, 2019

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Thanks to the various contributors who tipped this tale.

Des Moines Register

Updated: November 26, 2019 — 8:22 pm

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