Multi-State Lottery Association Pays $1.5m Iowa Settlement

Reportedly, in the midwestern American state of Iowa, the Multi-State Lottery Association agreed to pay a player $1.5 million to settle a lawsuit that he had won a diminished lottery jackpot as a result of an insider’s hijack draw scheme.

Larry Dawson won a $9 million Iowa Lottery jackpot in 2011, but filed a lawsuit five years later alleging his payout would have been higher if a staff member of the Multi-State Lottery Association had not bilked the previous draw.

The newspaper reported that the Multi-State Lottery Association had provided and administered services for dozens of state lotteries, including Iowa, but was left red-faced in 2017 when its former chief of security, Eddie Tipton, was convicted of rigging the company’s systems to allow him to predict winning numbers correctly.

The Des Moines Register reported that Tipton is alleged to have fiddled lottery games in as many as 17 states and is currently serving a prison sentence that could last for up to 25 years. Nonetheless, the newspaper reported that the Multi-State Lottery Association is still holding draws for the multi-state MegaMillions, Lotto America, and Powerball games that the Iowa Lottery is selling.

The newspaper reported that the settlement in the Dawson case was revealed only via an October 9 email from the Multi-State Lottery Association sent by Bret Toyne to Iowa Lottery officials and it remains unclear whether any additional stipulations were included in the deal.

Matt Strawn, Chief Executive Officer of the Iowa Lottery, publicly stated that he did not have any further information on the agreement beyond what was included in Toyne’s e-mail statement, but filed a complaint alleging that any such deal should be open to the public.

Strawn said: “The settlement between the Multi-State Lottery Association and Mr Dawson closes a chapter in lottery history that tested that foundation of trust. The actions of state of Iowa officials over the years to investigate, uncover and successfully prosecute this fraud against the public serve as a reminder that Iowa passed this test.”