Electronic National Lotteries

Abstract

We describe the design and implementation of secure and robust protocol and system for a national electronic lottery. Electronic lotteries at a national level are a viable cost effective alternative to mechanical ones when there is a business need to support many types of "games of chance" and to allow increased drawing frequency. Electronic lotteries are, in fact, extremely high risk financial application: If one discovers a way to predict or otherwise claim the winning numbers (even once) the result is huge financial damages. Moreover, the e-lottery process is complex, which increases the possibility of fraud or costly accidental failures. In addition, a national lottery must adhere to auditability and (regulatory) fairness requirements regarding its drawings. Our mechanism, which we believe is the first one of its kind to be described in the literature, builds upon a number of cryptographic primitives that ensure the unpredictability of the winning numbers, the prevention of their premature leakages and prevention of fraud. We also provide measures for auditability, fairness, and trustworthiness of the process. Besides cryptography, we incorporate security mechanisms that eliminate various risks along the entire process. Our system which was commissioned by a national organization, was implemented in the field and has been operational and active for a while, now. © IFCA/Springer-Verlag 2004.