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Originally Created: March 16, 2000
Updated: Dec. 30, 2017
- Part 8 -
The Tax Break Shenanigans of J. Winston Krause
In 2008, Commissioner Krause sued the IRS to get a
refund of interest and penalties he had paid for a disallowed
deduction and income. The disallowed deduction ... he
bought Canadian dollars for $20K; claimed he paid
$2.8 million; he showed a loss of <$2.7 million> yet
he had sold the Canadian dollars for $19.5K. A 2010
5th Circuit of Appeals quote ... "Krause's Tax
Chicanery" A very interesting and telling story
about the man who Chairs our Lottery.
Part 8 Posted April 6, 2014
A Must Read For Texas Players.
Click graphic above ...
How A Gaming Geek With Checkered Past
Pulled Off The Biggest Lottery Scam in U.S. History
Part 1 - A must read for all lottery players - an investigative
story to beat all. Des Moines Register - posted 3/15/18. This is
WHY all computerized draws should be outlawed. Click here
Same Geek Says US Lotteries Are Fatally Flawed
Part 2 of an fascinating investigative story. Texas Lottery Director
Gary Grief says it's been fixed. But they still have computerized
draws and that's the ONLY way to fix it! Hmmm ....
Posted 3/16/18 - Click Here
About Lone Star Line Up
A TX Lottery Promotion
The TLC claims they do not know how many
Lone Star Line Up tickets are sold each day.
Plus they reported conflicting sales figures for the
FREE Pick3 and Daily 4 tickets that players
receive when they purchase the $5 promotional
ticket. Posted 1/22/17 Click here.
Unsuspecting Player Receives Duplicate Quick Picks
& Are Texas Lottery Quick Picks Truly Random?
Unbelievable - Some lottery software allows lottery terminals to
print duplicate quick picks. Posted Nov 3, 2016. Click here
Texas' Fun 5's
Media Coverage - Fun 5's
- Meet Kelly Cripe -
Virginia Player Receives
Texas Player Buys
Will Texas Honor
Editorial & Opinions by Dawn Nettles
12/30/17 - Two days ago I posted a story (below) about the SC Lottery where their lottery terminals were printing winning tickets that the lottery claims were errors.
I was immediately reminded that I failed to say that at least South Carolina shut their game down within 3 hours whereas Texas, who did the same thing, continued to sell deceptive tickets for 7 WEEKS before shutting their game (Fun 5's) down. This was in spite of hundreds of phone calls that started immediately after the deceptive tickets started selling to consumers. Texas simply insulted players by telling them that they didn't know how to read.
For those few morons who posted comments that they agreed that players didn't know how to read, well, that same ticket sold in 7 other states/countries where the tickets WERE winning tickets - the same as TX players KNEW to be the case. Finally, I'm going to say - those "morons" are actually employees of either a lottery or one of the lottery vendors. Their intent was to try to influence players into doubting what they were reading.
At least, South Carolina did not insult their players by telling them they are not really looking at winning tickets. Rather, SC admitted the tickets reflect winning tickets but are saying it's a computer glitch. As I understand it, SC, in an emergency meeting, set aside $19.6 million to fund those 3 hours of fraudulent sales. They should honor those tickets at face value - a refund is NOT the right or a FAIR solution.
The Fun 5's legal cases are still pending. G-Tech/IGT, the designer/owner/manufacturer of the Fun 5's ticket, is trying to assert that they can't be sued. If any court rules in their favor, then lottery players need to QUIT playing any lottery. There is no consumer protection for lottery players and the lotteries are getting away with taking advantage us.
12/28/17 - Christmas lottery tickets in South Carolina has certainly taken its toll on ticking off lottery players. Since Texas' Fun 5's tickets - winning tickets that the Texas lottery refused to pay prizes on SO FAR - several other states have had major issues too where they've taken advantage of lottery players. Now we can add South Carolina to the group. The sad thing is that SO FAR, states have gotten away with selling winning tickets but not paying the face value of a winning ticket by claiming it's an error of some sort. I've posted many examples over the years.
Anyway, read on for the latest unscrupulous, unfair, immoral act performed by another state lottery. Sad but true ... Here's a story that appeared on FOX 46 WJZY's website ... (For many other stories, type "error in South Carolina" in your search engine)
Computer system error causes SC lottery ticket issues on Christmas
COLUMBIA, SC (FOX 46 WJZY) - The lottery tickets look like winners but a number of people in South Carolina are being told they're not so lucky.
"These are all the winning tickets I have," said Tony Berry, 43, from Columbia, SC. "$29,000 worth."
South Carolina Education Lottery officials suspended sales of all "Holiday Cash Add-A-Play" games after a glitch had potentially hundreds of people thinking they won $500 on Christmas.
Berry kept buying more of the $1 tickets and kept winning.
"Were you and the cashier freaking out?," asked Fox 46 reporter Matt Grant.
"Well he was looking crazy and I was surprised so I said I'm gonna keep playing until they stop me," said Berry.
Lottery officials blame it all on what they call a "programming error" from their computer system vendor, Intralot. The error impacts all South Carolina Holiday Cash Add-A-Play tickets sold between 5:51 pm and 7:53 pm Christmas.
The mistake went unchecked for more than two hours.
"Did you think at some point something's not right?," asked Grant.
"Yes I did," admitted Berry. "But it's not my fault."
Berry spent around $80 on tickets and says he wants to get paid the $29,000 he feels he's owed.
"I had some winning tickets. A lot of them for Christmas night and I want to cash them in," he told a lottery employee.
"These are all the holiday ones? Right now this game is under investigation," the employee said. "We should have some information by the end of the week by Friday. So check the website."
Lottery officials say they are investigating and suspended sales of the game "until further notice." Officials would not go on camera but said, in a statement, that anyone who purchased a "winning" ticket on Christmas should hold onto it "until the review is completed."
"Everybody should get paid," said Berry. "They get all of our money all the time."
Lottery officials say they will make "a further announcement" at the end of the week.
Berry says he often plays scratch-off tickets. The most he has ever won was $250. With bills to pay, he hopes his luck continues - for real.
"If they pay it's a great Christmas," said Berry.
The South Carolina Education Lottery issued this statement to FOX 46 Charlotte: The South Carolina Education Lottery's computer system vendor, Intralot, experienced a programming error on Christmas Day that impacted Holiday Cash Add-A-Play tickets, a $1 terminal-generated instant game. From 5:51 p.m. to 7:53 p.m., the same play symbol was repeated in all nine available play areas on tickets which would result in a top prize of $500. No more than five identical play symbols should appear for a single play. As soon as the issue was identified, the Add-A-Play game was suspended immediately to conduct a throughout investigation. Instant (scratch) tickets and all other lottery games were not affected by this error.
Holiday Cash Add-A-Play game sales and validations will remain suspended until further notice. All players who purchased a Holiday Cash Add-A-Play ticket on Christmas Day during the time period affected are advised to hold on to their ticket(s) until the review is completed. a further announcement will be made at the end of the week.
A New Game for Powerball and Lotto Texas is coming ...
Having said "suckers bet," I do think it's strange that it seems like 50% and sometimes 100% of the match 5 or 6 wins (which usually consisting of only 1 or 2 winning tickets - if any) are multiplied while this is not a true percentage for the other prize tiers. This is a story in itself that I'll cover on another day. I'm working on the stats.
Anyway, I'll post complete details on the Winner Take All game when the time comes. I believe this game is due to start in March or April 2018.
On A Personal Note ...
He was driving to work - 3:30 am - on LBJ in the HOV lane - topped a hill and something was in the middle of the road so he swerved to avoid hitting it. Instead he hit the concrete barrier, slid across 4 lanes of traffic on his side and up a grassy embankment. He landed right side up facing the freeway. He did not hit anyone else nor did anyone hit him. Just thinking about crossing 4 lanes of traffic without hitting anyone or getting hit is a miracle in itself. It is the "miracle" realization that has had it's effect on us.
I'm still trying to settle all personal matters effected by my brothers death and buying another car. For those days that I didn't post the drawing results timely, this is why. I was gone! AND, I've had some internet issues too where I couldn't post ... Hopefully things will settle down in the coming months.
8/22/17 - Couple of things of importance .... Powerball jackpot and Cashword Multiplier ...
First, regarding the Cashword Multiplier story posted 8/13/17 ...
Second ... about the unrealistic idea that you help schools when playing Powerball ....
Did you know that people who win large sums of money generally give back to their communities. They buy fire trucks, build parks, add on to schools and hospitals, help the needy, give to the SPCA, Children's Hospital, St. Judes and I could go on but hopefully you get the idea. So - having said that - did you know that since Texas started playing Powerball, Texas has sent an est $528 million out of state to fund jackpot winners who did spend their winnings in their communities. It did NOT help Texas in any way, shape or form.
At the same time, the $528 M is a little less than what the School Foundation Fund received from Powerball sales but still, to me, for Texas, Powerball has been a loss of revenue for the state. Just imagine what Texans could have spent helping their own cities had Texans won this prize money. (The winner is suppose to receive 34% of total sales and the schools are suppose to receive 38%)
Texas has only had 2 Powerball jackpot winners - in 786 drawings - in which $127 million came to Texas to fund those two players. One ticket was sold in Princeton the other in Bell. But, as you can see, this is nothing compared to the money Texas sent out of state to pay jackpot winners.
Now imagine .... had all this money been won in Texas on Texas games, then Texas would've been much better off in so many ways.
I do have one good thing to report ...
Please understand - there are 292 million Powerball combinations and ticket sales aren't even putting a dent in covering all combinations meaning it's not likely there will be a winner tomorrow night. I hope there is so players nationwide will quit blowing money they don't have.
And by the way ... the jackpot was not raised from $650 to $700 million because sales were driving it - they had $22 million in excess jackpot funds from Saturday's nights drawing.
08/19/17 - There are no top prizes remaining on scratch game Double Match # 1872. The stores were notified on August 15th via their lottery terminals to pull this game IMMEDIATELY but some stores in my area have NOT pulled them yet. Tell your retailer he can pull up his notice by "special functions" then "mail." He needs to look for the message that says "No Top Prizes" in the subject line. Use up and down arrow keys to select the message. Here's the notice ...
FAVOR - This time would you let me know which stores tell you it's not their job to pull tickets - rather - it's G-Tech's job? All you can do is tell your stores that there's no top prizes on this ticket and the Texas Lottery has told them to pull the game. It's not FAIR to sell these tickets to fellow players who most likely have no idea they can't win the top prize. We must be persistent on this issue because both the Texas Lottery and G-Tech really don't want to pull games with no top prizes.
It is my understanding that investigators with the Texas Lottery were suppose to be in Dallas this past Wed, Thurs, & Fri checking on my complaints (and four others) - I explained this issue in my 8/13/17 posting below. Unfortunately, my brother got sick last Sunday and was in the hospital all week. I've been gone more than here so I have no idea what's taking place in the field. This is also why I was slow posting this past week. Anyway, I will find out what they learned about retailers who didn't know how to check mail, are not removing tickets and about the reps who lied to stores about my filing a complaint.
If you didn't read about the Cashword Multiplier story, read on ...
08/13/17 - About my banner telling ya'll not to buy Cashword Multiplier, #1866 ...
I had hoped that ya'll would report the stores that were still selling this game to the TLC. Instead, I think most of you reported it to me.
My posting this story is long overdue ... let me give you a little history so you'll understand the issue better ....
Examples of "highly visible" ... These are TX Tickets ...
When all the other states saw what was happening in California - they immediately took action to prevent this from happening in their state. THREE major changes were implemented ...
The Texas Lottery, in January 2001 (I believe this date is correct), GUARANTEED the legislature that there was NO way TX could lose money on the scratch tickets. They explained that each shipment coming from the printer was divided into 6 groups and each group contained 1/6 winning tickets and 1/6 losing tickets.
In explaining this to the Commissioners, TLC staff used Hershey Kisses divided into 6 groups explaining that G-Tech would not move to the second group to ship until all had been shipped from the first group. This convinced the Commissioners that the state would face no liability in selling scratch tickets. I was there that day.
Here's a copy of the notice sent to retailers via their lottery terminals when all top prizes have been sold ...
While this notice IS sent to the retailers ....
It is totally ignored and the TLC knows it ...
Reps are also aware that retailers don't check their mail and in many cases, don't even know how. (You can help educate the retailers ... To check their mail - tell them to select "Special Function" then select "Mail' on their terminals to read messages sent by the TLC)
The TLC has convinced the legislature ...
The bottom line -
Is the Texas Lottery really doing all they can to remove scratch tickets with no top prizes remaining?
Here's 90% of a solution ....
The game in question today ... #1866 Cashword Multiplier ... was to be pulled on July 11, 2017. But ...
Look at this file - Excel - where you will see that another 1000 packs were activated between July 20 and July 31.
You can use these two Excel files to check your stores to see when and IF they've activated packs after the date they were suppose to pull the game. Again, remember, these games were to be pulled from POS (point of sale) on July 11, 2017. IF the Texas Lottery was serious about pulling games or doing all they can to pull the game - then why would they allow stores to activate new packs of games that are suppose to be pulled?
So that you know - they can cease pack activations in less than a minute. They do it when stores are robbed and this is a daily occurence. Activations and validations on stolen or damaged packs are prevented. They also prevent activations when they find errors on games where they want them off the streets immediately.
2) The End of Game Notice found in the stores is extremely misleading and I think it's done this way on purpose. Let me show you
This is what the posted End of Game Notice says on #1866 - Cashword Multiplier ...
Notice the column titled "Pre-call" - it says "N/A." The "N/A" means all top prizes have been claimed and retailers have been notified to pull these games. But no where does the notice say or explain this - perhaps if it said "immediately," it might be better understood.
But then you see a date under "Call Date" which means that the reps "could" start picking up the games on this date BUT they still have until the "Official Close of Game" date to have all tickets in. As you can see, this notice does NOT make it clear that retailers are to pull the game from POS. On games that are "supposed to be pulled from point of sale immediately," perhaps it would be clearer to the players and the retailers to pull the game IF it simply said to remove the game. Huh?
The truth is, on games with No Top Prizes remaining, the only date that should appear would be the End Validations date.
FYI - This is what the notice says pertaining to the column heading and the dates shown on the flyer ...
Regarding the 45 days to pick up tickets ...
Speaking of deceiving ...
Interesting stories to share with what's happened to me in the last four weeks over game #1866 - Cashword Multiplier ....
2) I had two stores accuse me of filing a complaint against them when I did NOT file a complaint. In response to these 4 incidents, I mailed a complaint to the Texas Lottery. Their G-tech rep literally lied to them when they said I filed the complaint. I'm waiting for my name to be cleared. TLC investigators are investigating. Anyway, here's the letter I sent to the Texas Lottery. Click here3) I was in a Tom Thumb store and was getting ready to tell the Office Manager that, "as of last night, I noticed she was selling a scratch ticket ...." but was immediately interrupted .... she said, "I heard all about you this morning from my G-Tech rep and she told me not to believe or do anything you say."
"WOW" is what I said! So another letter was sent to the Texas Lottery which gives the details.
At one point during this ordeal, even a staff member of the Texas Lottery told me by phone that, "Retailers don't have to pull this ticket." He said, "My records show game 1866 can sell through August 25, 2017 - it still has low tier prizes remaining." The reason he said this to me was because I was insisting that he take a complaint that a particular store was selling this game with complete disregard to the message sent via the lottery terminals to pull the game. He said he had no knowledge of any such message via the terminal.
I just shook my head in disbelief. At the end of our conversation, he said he's check on it and get back to me which he did. Moral to this story is that it appears not only are store clerks not trained on their terminals, but TLC staff are not well trained either.
Interesting experiences of stores selling games with no top prizes ...
Another time I told a retailer he was suppose to pull a ticket because all top prizes had been claimed. He didn't believe me so we agreed I would prove it to him by calling the Texas Lottery to confirm it. We called and he found that he really was suppose to pull the game so he did. Unfortunately, what happened next was nothing short of CRUEL. He received an ugly letter from the Texas Lottery telling him he was in violation of his contract and this was his first warning. He requested that I never call the TLC again!
An interesting observation of a G-Tech rep pulling a game WITH top prizes still remaining ...
I'm slow .... I realized later that he must have had the pack with the multi-million winner in it. If I had been sharper, I'd have bought those tickets! Of course, this is just what I thought - I have NO proof of any kind.
In concluding today's long overdue posting ...
The Lotto Report
P. O. Box 495033
Garland, Texas 75049-5033
(972) 681-1048 Fax