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Megabucks Lottery

Ex-lottery official received severance amid jackpot scandal

A prominent lottery official who was stripped of power after a subordinate allegedly carried out a prolonged jackpot-rigging scheme received a $284,000 severance payment, a recent tax filing shows.

The Multi-State Lottery Association made the payment to its longtime executive director Chuck Strutt as part of a "voluntary termination agreement" signed March 31, according to its 2016 tax return. The filing, released by the group in response to a request by The Associated Press, also reveals that its legal and security expenses have skyrocketed as a result of the case.

The group's board, which includes directors from the 37 state and territorial lotteries that are...