Letters seeking $1.4 million are sent to 2 vendors
Tennessee Lottery officials have asked two vendors to pay a total of $1.4 million to make up for losses caused by a computer coding error that compromised the Cash 3 and Cash 4 games in August.
Lottery CEO Rebecca Paul Hargrove and two board members disclosed the figure during a meeting Tuesday with The Tennessean's editorial board.
Letters demanding the payment were sent to Smartplay International, the vendor that supplied the computers that contained the software coding error, and Gaming Laboratories International, a company the lottery hired to verify that the Smartplay computers would function properly.
The letters asked for $1.4 million to cover:
$762,507 in refunds to lottery players who turned in their losing tickets to the lottery.
$549,259 in increased prizes given out for several weeks after discovery of the glitch.
$95,000 in fees to KPMG Canada, the company hired to verify the computers now are working properly.
The lottery switched July 28 from a system in which numbered balls were picked to a system in which computers picked the winning numbers. A software coding error prevented the computers from drawing any numbers with repeating digits, such as 3-3-6 or 5-5-5-5. The error wasn't discovered for three weeks.
To compensate players, the lottery offered double refunds or free plays to those who had kept their tickets — as long as the tickets contained numbers that could not have won because of the glitch. The lottery also increased prize payouts for 23 days after the glitch.
Hargrove said both companies submitted the $1.4 million request to their insurance companies. The insurance carriers have told the lottery the matter is under discussion, she said.
Request given to insurer
Smartplay President David Michaud confirmed in an e-mail to The Tennessean that the request was made and turned over to the firm's insurer. He said Smartplay had no further comment.
Gaming Laboratories President James Maida was not available when The Tennessean called Tuesday afternoon. That firm and Smartplay are based in New Jersey.
Asked whether the lottery board would sue the two companies, James Ripley of Sevierville, the board's audit chairman and an attorney, said the issue was "complicated" and would depend on what is best for the lottery.
Tom Dinkins, a lottery player who lives in Antioch, said he agreed the lottery should ask for the money back but also said he thought it proved that the lottery should return to ball drawings.
"We trusted them to get it right, and it didn't happen,'' he said. "Now they are saying we want $1.4 million back, but in the meantime, we have to trust now that they have it right."
"We trusted them to get it right, and it didn't happen,'' he said. "Now they are saying we want $1.4 million back, but in the meantime, we have to trust now that they have it right."
What a difference the Tenn Lottery has made. A year ago it was one of the best lotteries in the Nation. Now it's one of the worst. To me Tennessee is the next Indiana. What a shame.
Asked? ASKED?! It wasn't written in the contract that the supplier wouldn't be responsible for its own errors? Whoever was involved in the authorship and review of that contract ought to be canned.
Quote: Originally posted by Tnplayer805 on Oct 31, 2007
What a difference the Tenn Lottery has made. A year ago it was one of the best lotteries in the Nation. Now it's one of the worst. To me Tennessee is the next Indiana. What a shame.
"To me Tennessee is the next Indiana. What a shame."
It's funny how people keep using "Indiana" as the derogatory word even though there are other states that have computerized drawings, in yet, there is still no information given by that person about Indiana to justify the use in that way. So please, explain why "Indiana" was the word you chose to use. You're trying to make it seem as if the incidences were collaborated by the all-so-evil Hoosier Lottery organization as a whole, as if all Hoosier Lottery employees are all part of some maniacal scheme. The fact is, all businesses have problems.
Quote: Originally posted by Guru101 on Oct 31, 2007
"To me Tennessee is the next Indiana. What a shame."
It's funny how people keep using "Indiana" as the derogatory word even though there are other states that have computerized drawings, in yet, there is still no information given by that person about Indiana to justify the use in that way. So please, explain why "Indiana" was the word you chose to use. You're trying to make it seem as if the incidences were collaborated by the all-so-evil Hoosier Lottery organization as a whole, as if all Hoosier Lottery employees are all part of some maniacal scheme. The fact is, all businesses have problems.
I made the comment because the Hoosier lottery has lost its integrity. Yeah, it has computerized drawings; however, they also had that instant ticket incident. You know the one where a lottery official leaked info on where a winning instant ticket was going to be sold and they split the money? That's a loss of integrity. I'm sorry if that offends you but that's the way I see it.
Quote: Originally posted by Tnplayer805 on Oct 31, 2007
I made the comment because the Hoosier lottery has lost its integrity. Yeah, it has computerized drawings; however, they also had that instant ticket incident. You know the one where a lottery official leaked info on where a winning instant ticket was going to be sold and they split the money? That's a loss of integrity. I'm sorry if that offends you but that's the way I see it.
I'm not offended at all, but the instant ticket incident cost the guy his job and he has faced legal charges as well. He got what came to him. Just because one employee is crooked, doesn't mean all the employees are crooked. Anybody could be crooked, even people YOU work with. Just because a Hoosier Lottery official screws up, doesn't mean I'm about to say the whole organization is corrupt, just as I don't say all cops abuse their power even though there are some that do. A problem occurs and then you handle it. That's just the way I see it.
"We trusted them to get it right, and it didn't happen,'' he said. "Now they are saying we want $1.4 million back, but in the meantime, we have to trust now that they have it right."
No, Becca Tennessee trusted you to get it right!
What a difference the Tenn Lottery has made. A year ago it was one of the best lotteries in the Nation. Now it's one of the worst. To me Tennessee is the next Indiana. What a shame.
Asked? ASKED?! It wasn't written in the contract that the supplier wouldn't be responsible for its own errors? Whoever was involved in the authorship and review of that contract ought to be canned.
"To me Tennessee is the next Indiana. What a shame."
It's funny how people keep using "Indiana" as the derogatory word even though there are other states that have computerized drawings, in yet, there is still no information given by that person about Indiana to justify the use in that way. So please, explain why "Indiana" was the word you chose to use. You're trying to make it seem as if the incidences were collaborated by the all-so-evil Hoosier Lottery organization as a whole, as if all Hoosier Lottery employees are all part of some maniacal scheme. The fact is, all businesses have problems.
There is something fishy again with the TN lottery...
last five draws contained
ABA.... What is the likelihood of this..
Something programmed in that computer....
Rebcca is making splash again....
Email them now..
I'm not offended at all, but the instant ticket incident cost the guy his job and he has faced legal charges as well. He got what came to him. Just because one employee is crooked, doesn't mean all the employees are crooked. Anybody could be crooked, even people YOU work with. Just because a Hoosier Lottery official screws up, doesn't mean I'm about to say the whole organization is corrupt, just as I don't say all cops abuse their power even though there are some that do. A problem occurs and then you handle it. That's just the way I see it.