Jackpot: New Film Explores America’s Multimillion Dollar Lottery Fraud Mastermind
Posted on: June 3, 2025, 08:47h.
Last updated on: June 4, 2025, 09:40h.
- Documentary revisits Iowa’s Hot Lotto fraud scandal
- Eddie Tipton rigged lotteries using a secret, self-deleting code
- Jackpots were manipulated across five states from 2005 to 2011
A new documentary released on Tuesday, “Jackpot: America’s Biggest Lotto Scam,” revisits the story of Eddie Tipton, an unassuming, hotdog-munching Dungeons and Dragons geek who masterminded the greatest lottery fraud in US history.
The highly intelligent Tipton was head of security at the Multi-State Lottery Association (MUSL) in Iowa, where he was reportedly much loved by his colleagues.
In 2015, he confessed to rigging the Hot Lotto draw five times in five states between 2005 and 2011, though the true number may be higher.
Hidden Code
Tipton was part of the team that developed the random number generator MUSL used to draw the numbers. Unbeknownst to his colleagues, he embedded malicious software that would self-delete while enabling him to predict winning numbers on specific dates each year. Tipton covered his tracks by disabling surveillance equipment.
The code allowed him to decrease the odds of hitting the jackpot from 5 million/1 to 200/1.
The first confirmed case tied to the scam occurred in Colorado on Nov. 23, 2005, with a $4.8 million jackpot. Three people claimed the prize, including a contact connected to Tipton’s brother, Tommy Tipton.
Tommy Tipton was a magistrate judge in Fayette County, Texas, and an enthusiastic bigfoot hunter. Conveniently, he happened to be in Colorado pursuing his bigfoot obsession at the time and was able to arrange for a friend to claim the money.
The most significant — and ultimately incriminating — jackpot occurred in 2011 when several attempts to claim a $16.5 million prize through various law firms just days before the ticket expired raised red flags with lottery officials.
Candid Camera
Investigators reviewed footage from the Des Moines gas station where the ticket had been bought nearly a year earlier. The video showed a heavy-set man wearing a dark hoodie that obscured his face purchasing two hot dogs and the winning lottery ticket. Tipton’s colleagues were stunned when they recognized him as one of their own.
During questioning, Tipton said he felt overworked and underappreciated, and had warned MUSL about system vulnerabilities — warnings he claimed were ignored.
He was sentenced to a maximum of 25 years in prison and was ordered to pay millions in restitution, but he was released on parole after only five years. He currently lives in Texas and refused to cooperate with the documentary.
Arch Nemesis
The film was co-produced by Terry Rich, the former president of the Iowa Lottery, who has dined out since his retirement on the Tipton story as an after-dinner speaker. Rich retains a certain amount of respect for his arch nemesis, as does Ed Stefan, a former head of MUSL.
As far as the east is from the west, Eddie is one of the best freaking human beings out there. He is just a good guy. He really, really, truly is. He just made a bad choice,” Stefan said.
“Jackpot: America’s Biggest Lotto Scam” is available to watch for free on YouTube from today.
Last Comment ( 1 )
Just a fat greedy jerk. I’m sure he made good money at MUSL. Not enough. Slap on the wrist.