Hot Lotto scandal: a stroke of criminal genius
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9 Sep 2025 •
Reading time: 3 minutes In 2010, a Hot Lotto lottery jackpot was mysteriously left abandoned, triggering the discovery of one of the biggest fraud cases in the United States. Behind the manipulation is a computer security expert who uses his position to rig draws, embezzle millions and defy the system.
A jackpot left unclaimed
At the end of December 2010, a Hot Lotto jackpot worth an estimated $14.3 million remained unclaimed for almost a year. Why was this? Anonymous claim attempts were rejected, exposing a mysterious fraud attempt. The ticket was presented in the name of a shell company based in Belize, but misspelt and immediately discarded by the Iowa lottery, which requires the identity of winners.
A computer expert at the top of the system
In October 2015, the investigation revealed the identity of the culprit: Eddie Raymond Tipton, former director of IT security at the Multi-State Lottery Association (MUSL). He had access to the random number generators used for Hot Lotto.
On 13 April 2015, at the start of his trial, investigators testified that he allegedly installed a rootkit on the draw computer, thanks to an incursion into a secure room under faulty surveillance. This malware, programmed to self-destruct, made it possible to rig the draws.
On 20 July 2015, Eddie Tipton was found guilty of fraud on two counts. He was sentenced to 10 years in prison. However, in June 2017, the Iowa Supreme Court overturned some of his convictions due to the statute of limitations running out.
More than a single hit: a planned fraud
The investigation extends far beyond the 2010 jackpot. There is evidence that Eddie Tipton influenced draws as far back as 2005. On 23 November 2005, the Colorado Lottery paid nearly $568,990 to his brother Tommy Tipton. In 2007, a jackpot of $783,257 in Wisconsin went to an accomplice, Robert Rhodes. And in November 2011, a win of $1.2 million in Oklahoma was suspected.
The investigation revealed that the rigged software made the draws predictable on 27 May, 23 November and 29 December, if the draw took place on a Wednesday or Saturday after 8pm.
Confession and early release from prison
In June 2017, in a resounding confession, Eddie Tipton admitted writing a code to predict the winning numbers he influenced and sharing his predictions with accomplices. He pleaded guilty and was sentenced to 25 years in prison and ordered to pay restitution of nearly $3 million; his brother Tommy was sentenced to 75 days in prison.
Despite the conviction, restitution to the states concerned (Colorado, Oklahoma, Kansas and Wisconsin) amounted to only around $1.2 million of the more than $2.3 million demanded. What’s more, some of the fraudulent winnings were transferred to their mother, Lawanda Tipton, complicating the recovery of the funds.
What is most terrifying? It’s not the sum stolen, nor the duration of the fraud, but rather the betrayal of a system designed to ensure fairness. Eddie Tipton used his skills and privileged access to exploit a massive vulnerability.