Iowa Lottery strengthens security measures

A recent investigation detailed cases of Iowa retail employees stealing lottery tickets and cashing in thousands of dollars in illegitimate prize money, as well as situations in which lottery officials failed to reclaim jackpots of as much as $30,000 that were claimed fraudulently.

A common type of lottery fraud involves buyers who give winning tickets to other people to collect the payout in an effort to avoid paying debts to the state. Iowa law requires the lottery to participate in the state's income-offset program, which is used to collect money owed to government institutions, including child support, court fees, and back taxes.

Terry Rich, the lottery's chief executive officer, defended the lottery's integrity Tuesday, saying the games have about 130 million transactions annually for ticket sales, prizes awarded and other matters.

"We aren't perfect, but when you look at the overall number, it's pretty good because we work every day to try to improve," Rich said. "But there is always going to be somebody who tries to beat the system and so we balance income with integrity. The protection of the players is always first and foremost in our mind."

A common type of lottery fraud involves buyers who give winning tickets to other people to collect the payout in an effort to avoid paying debts to the state. Iowa law requires the lottery to participate in the state's income-offset program, which is used to collect money owed to government institutions, including child support, court fees, and back taxes