IOWA LOTTERY SECURITY CONDUCTS CHECKS,
ALL PRIZES PROPERLY PAID BY IOWA RETAILERS

To download digital audio files of this story, right click here, then navigate to "Save Target As" to save this file to your computer.

For media-ready jpeg image of the of the Iowa Lottery's "Sign it. It's Yours." logo click here.

CEO Reminds Public To Report To Lottery Any Concerns About Its Games, Operations

DES MOINES, Iowa – In a continuation of its focus on player security, the Iowa Lottery recently conducted unannounced security checks at more than 120 lottery retail locations across the state to see how winning tickets would be handled. All prizes were properly paid by store personnel.

Lottery security investigators posed as customers and visited 126 randomly-selected Iowa retail locations in late February, presenting 128 lottery tickets for cashing that had won prizes of up to $100 each. In every instance, the location paid the correct amount.

Iowa Lottery CEO Terry Rich said he was heartened by the results of the checks.

"The Lottery has known from its experiences through the years that Iowa's retailers are hard-working individuals who are part of the lifeblood of our state's communities," Rich said. "But there have been problems involving lottery-ticket redemption outside Iowa, and we thought it was important to double-check the process here."

Cases involving retailer fraud at some of the lotteries in Canada were revealed over the past few years. And this year in California, more than two dozen people working at retail outlets have been arrested for the grand theft of winning lottery tickets as part of checks by the California Lottery. All of the California suspects were accused of cheating lottery customers.

Rich said he is concerned that about half the Iowa retailers visited last month by lottery security investigators did not require that lottery tickets be signed before cashing them. He said the lottery will renew its efforts to educate the public about the importance of signatures on lottery tickets, and will specifically visit those locations that did not ask for signatures to inform them that ongoing violations will not be tolerated.

"A signature on a lottery ticket identifies it as belonging to the person who has signed it," Rich said. "That provides protection and avoids confusion for all those involved in the validation process. Consumers should protect themselves by signing their tickets and retailers should check for that signature."

Rich, who was appointed lottery CEO in February, said that while he anticipated things have been running smoothly in Iowa, he thought it was important to take a fresh look at the process of cashing lottery tickets here.

"It appears that the Iowa Lottery's regulatory and administrative tools have been effective, but each of us – whether we're a lottery employee, retailer, player or member of the public – must remain vigilant if we're to protect ourselves against fraud," Rich said.

Over the past few years, the Iowa Lottery has increased its focus on lottery security in a variety of ways. In January 2007, the lottery held a joint news conference with the Attorney General's Office to warn Iowans about lottery scams. The Lottery also enhanced the player security information it offered on its Web site (visit www.ialottery.com and click on "Player Security" to learn more).

In 2008, the lottery instituted two other security enhancements, requiring that tickets be signed on the back before they can be checked or cashed; and that receipts be printed for all lotto and instant-scratch tickets that are checked or cashed. Two receipts are printed – one for the retailer and one for the lottery player – that show the results of a particular ticket and whether it has won a prize. Receipts are not involved for pull-tab tickets, as the amount of any pull-tab prize won is already printed on the ticket.

Rich said that integrity is a cornerstone of any lottery, and Iowa's lottery will not compromise on the issue.

"The Iowa Lottery is a leader in consumer protection," Rich said. "Iowa has had a very strong record regarding lottery security and all of our elevated efforts over the past few years are designed to protect against even the possibility of fraud."

Rich said lottery investigators also will continue periodic, random checks of ticket validation.

"I have directed our security team to continue ongoing investigative research," he said. "It's important to continue our vigilance to protect consumers and the integrity of the Iowa Lottery."

The retailers visited by the lottery in February were in 76 different cities across the state and included a mix of establishments in urban and rural areas.

Rich encourages anyone who has a concern about the lottery, its products or operations to contact the lottery at 515-725-7900 or e-mail the lottery at Wmaster@ialottery.com. Anyone with a security-related concern should direct their inquiry to the Lottery Security Department at 515-725-7888.

There are a variety of ways to learn about the lottery and its products:

• Watch the televised drawings in lotto games.
• Check information on the lottery Web site at www.ialottery.com.
• Ask a retailer to print winning numbers reports from the lottery terminal.
• Call one of the lottery's five regional offices around the state for information.
• Listen to lottery results on local radio stations.
• Check lottery results in local newspapers.
• Call the lottery’s winning numbers hot line at 515-323-4633.
• Sign up for the lottery's VIP Club and receive e-mails of winning numbers and drawing results.
• Sign up for the lottery's text-messaging service that sends winning numbers and other information directly to a player's text-enabled mobile device.
• Follow the Lottery on Twitter, friend the lottery on Facebook or visit the lottery's blog at www.ialotteryblog.com.

Since the Iowa Lottery's start in 1985, its players have won more than $2.2 billion in prizes while the lottery has raised more than $1.1 billion for state programs.