"If they have it, I say, give them their money back. But, this one is a totally different issue."

I don't see it as a separate issue.  Either there is a valid draw or there isn't.  If it's a valid drawing, the winner is entitled to his money (and really to the additional portion he was denied due to the criminal activity).  If the drawing wasn't valid, than the other players would be entitled to a refund (presuming proof of purchase) and the winner should be required to return the jackpot.

From the perspective of the honest players, the draw was random.  No one  knew what the selected numbers were, and so their odds weren't actually any different.  They had just as much likelihood of winning as any other game.  That weighs toward considering it a valid drawing.  As I said below, I just find it interesting that these two groups have taken opposing positions.