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Lotteries may have been fixed in 5th state: Kansas

Charges against former chief grow

IOWA CITY, Iowa — The former security chief for a national group that operates state lotteries personally bought two prize-winning tickets in Kansas worth $44,000, investigators said Monday, bringing to five the number of states where he may have fixed games to enrich himself and associates.

Investigators recently linked the winning 2010 Kansas tickets to Eddie Tipton, former security director of the Multi-State Lottery Association, Iowa assistant attorney general Rob Sand disclosed in court documents. The evidence will show that Tipton associates who claimed the prizes returned half of the money in cash directly to him in early 2011, he wrote.

Tipton allegedly purchased two winning tickets to the “2by2” game at separate locations while traveling through Kansas on business in December 2010, the Kansas Lottery said. Each was worth $22,000, and were allegedly passed on from Tipton to individuals from Iowa and Texas who claimed them, the lottery’s statement said.

In his job managing lotteries for 37 states and territories, Tipton managed random number generators that pick winning numbers for some national games such as Hot Lotto and games played in individual lotteries.

As a lottery vendor, Tipton was barred from playing the lottery.

Prosecutors believe that Tipton, 52, used his access to the machines to surreptitiously install software programs that let him know the winning numbers in advance before disappearing without a trace. They say he worked with associates such as his brother Tommy Tipton — a Texas judge — and Texas businessman Robert Rhodes to play those numbers and collect prizes dating back to 2005.

Earlier this year, a jury convicted Tipton of fraud for fixing a $16.5 million Hot Lotto jackpot dating back to 2010. He was sentenced to 10 years in prison but is free while he appeals.

Since Tipton’s conviction, Iowa prosecutors have charged him with ongoing criminal conduct and money laundering for allegedly fixing jackpots valued at $8 million in Colorado, Wisconsin and Oklahoma. The Kansas jackpots were added to the charges Monday.

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