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Originally Created: March 16, 2000
Updated: July 11, 2014

- 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
" 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 ...



Texas' Fun 5's
Scratch Tickets

Fun 5's Scratch
Tickets Not Paying
Face Value of Winnings

See it for yourself. Includes
all details. Click here.

Fun 5's
Questions & Answers

Everything you have been
asking me is covered here!
Posted 9/21/14.
Click here.

Media Coverage - Fun 5's
This is NOT all of them!

ABC - KTRK TV Houston
NBC - KXAS - Dallas
Houston Chronicle
Dallas Morning News
Kens5 - San Antonio - TV.
Dallas Observer
Click 2 - Houston
Fox News
Fox 7 - Austin
Austin American

Good Morning America
(Can't find link)
Channel 11 TV -
Fort Worth - 10/21/14

Courthouse News

Houston Chronicle
Dallas Morning News,
Courthouse News,
Dallas Morning News,
Houston Chronicle,
4 Traders
Courthouse News
News Journal
WacoTrib (AP)


FY14 Ends With
What Appears
To Be A Substantial
Loss In Revenue

... Sales way down from FY13 ...
<$106.5 M>;
Lotto Texas
<$11 M>;
Pick 3
<$14.7 M>;
Cash Five
<$3.7 M>;
2 Step
<$2.4 M>;
All or Nothing <$17.3 M>.
Two games increased
their sales ...
Mega Millions (+ $72M)
& Daily 4 (+ $8 M)
Scratch ticket sales to
be determined.
See the facts.
Posted 8/31/14.
Click here.

- Meet Kelly Cripe -
The Spokesperson
For the TX Lottery

She's the person who decided
I didn't need to receive public
information that I pass along
to you every day!
Originally Posted 5/30/12
- Click here -
My response to Cripes
Cease & Desist Letter

Posted 4/21/13,

Click here

We've never seen Cripe
on TV - See the "test"
interview she did prior
to being hired. (A wmv
file - should open in
Windows Media Player
Posted June 23, 2014
Click here

About Texas Triple
Chance Three
Separate Postings

With this letter, I've done
all I can do - Posted
1/30/14. Click here

Is this game a true
lottery game? Is it
legal? Posted
1/20/14, Click here
"Secretly" Proposed.
Details New Game.
Posted 1/7/14,
Click here

Unbelievable Duplicate
Quick Picks

Louisiana players buys 4
tickets, all tickets have
the same numbers.
Very sad. (Nov 7, 2013 -
Updated Nov 12, 2013)
Click here.

Did Gary Grief Lead
The Commissioners
Believe All or Nothing
was born in Texas?

And about that highly
publicized "liability"
Posted 6/8/13.
Click here

Houston Chronicle
Exposes Mr. Grief's
Contractions Regarding
All or Nothing

Here's the answers to all
your questions and the
REAL truth (6/5/13)
Click here

Will Texas Honor
The Rule & The Face
Value of My Scratch

This letter was submitted
to Gary Grief - Director
of the TLC. I'm asking
that my winning tickets
be paid - Unbelievable
story and only the tip
of the iceberg regarding
Texas scratch tickets.
After you read the letter,
tell me - do you think
it's a winning ticket?
Should they pay me?
Posted 12/10/12.
Click here

Texas Player Buys
7 Quick Picks And
Receives 7 Identical

An Unbelievable
Story - Posted 3/15/12,
Click here

Lottery Terminals
Err - Here is
Absolute Proof

Posted 7/12/07 -
Don't let this happen to
you. Check your own
tickets! Click here
Very Interesting.

Editorial & Opinions by Dawn Nettles


7/11/14 - Update to the FREE Lotto Texas tickets. Yesterday
morning, I did receive a response from Kelly Cripe, the Media
Director. She said, "Starting Tuesday, 7/1, through Monday,
7/14, South Texas Merchants Association (STMA) is conducting
an exclusive Mega Millions(r)/Lotto Texas(r) player promotion
at participating STMA retail locations.

I did initially ask for details which she did not provide to me.
After receiving her response, I wrote back and said ...

"Thank you for providing at least this much. However I still do not
know what they are giving away. Are they giving $2 Lotto Tickets
(includes Extra) or just $1 Lotto Tickets. I suspect it's $1 tickets since
one amount was odd. (Same questions for Mega Million/Megaplier -
however, there's not been any free tickets shown on the sales reports.)

And what does a player have to do to get a free ticket?
Spend what to get what?

For players to know where they can get free tickets, would you
please give me a phone number for them to call to find out which
retailers have these tickets or a list of the stores with addresses.

This is free advertising for the retailers.

I will post your message in a little bit. I sure hope
I have more info to tell Texas players.

As I write this at noon on July 11, 2014, the Texas
Lottery has not responded. Therefore, I guess they don't
want to risk giving away too many free lottery tickets -
as it appears that only a select few can obtain these tickets.

Sorry that I allowed it to drag on for so long without
telling you that you could have gotten free Lotto tickets.
It appears obvious to me that the Texas Lottery does
not think we have a right to know.

Interesting, you can go to their website and find out
where you can buy certain scratch tickets but you
can't find out where to get free Lotto tickets!

7/8/14 - I've got several tidbits to tell ya'll about today. I think
their very interesting and telling. For instance - once again,
store clerks have been caught stealing players winnings.
Also I want you to see how the 9th promotion - in two
years - fared for All or Nothing and Pick3. Then, finally,
we'll talk about how you can get FREE Lotto Texas tickets.

Let's get started.

North Carolina conducts a sting on their retailers.
This is something Texas prefers to ignore - they only
investigate people like me which I'll tell you about soon.
It's included in Part 9 of my 10 part series. At any rate,
watch this TV broadcast - it's unbelievable - click here
(North Carolina - WSOC - Channel 9)

I do want to say that if you read the "tips" to prevent
this from happening to you - I do NOT agree with all that
the lotteries are trying to get you to do. I do NOT believe
in signing your tickets - should you win - you may
want to claim the prize in another name and if you alter
the ticket in anyway, you will be investigated before they
pay you - and - they drag these so-called "investigations"
out for a long time. As for using the self serve checkers,
they can err. You should check your own tickets - use
the self serve checkers as a back up only.

In 2003, I posted on my VIP page, to stop store clerks
from checking players tickets. I also made the same
recommendation in my last two Sunset letters. The
Texas Lottery didn't agree with me so the legislature
listened to them and not me. (Imagine that!)

The Texas Lottery will not stop the clerks nor
do they go out of their way to catch them. The
truth is, it's the players fault - it always has been -
and there's no way to "really" educate the players.
The Texas Lottery tries to convince everyone
that they will educate the players - but players
don't read and don't listen. I do it in person but
players do NOT change their ways and won't.

- Another All or Nothing/Pick3 Promotion Just Concluded -
Let me show you something then you decide if
the promotions are paying off for the Texas Lottery
or the state of Texas. The fact is, All or Nothing has
been a huge failure for the state and rather than to
admit failure, they keep trying to entice sales. They
are still falsely advertising how many "winners"
there's been since inception of the game.

The last promo went from June 9 through July 5, 2014..

Here's how the last promo fared ....

All or Nothing
Date Total Sales Description Outcome - Bottom Line
May 12
thru June 7
$3,329,396 4 weeks
prior to

June 9
thru July 5,
$3,158,170 4 weeks
May 12
thru June 7,
$20,037,042 4 weeks
prior to
June 9
thru July 5,
$20,194,888 4 weeks
Comparison between the
two games involved.
Using 4 weeks before
promo then 4 weeks
during the promo
Bottom Line
Lost Revenue


Just in case you don't know what the promo was,
between June 9 though midnight on July 5, if you
bought $6 in Pick3, you would receive a free
$2 All or Nothing ticket.

The Texas Lottery gave away
$1,957,464 in All or Nothing FREE
tickets during the promo.

Sad but true.


How to receive FREE Lotto Texas tickets?
Sorry, but I can't tell you. I only know some lucky
folks are receiving free tickets but I can't find out how,
where and when. The Texas Lottery (Kelly Cripe,
Gary Grief and Commissioner Krause) have
refused to reply to my question. And Lord
knows we can't call them to ask! <grin>

See proof of the FREE tickets ....

By the way, in the past, this very question
has always been answered and quickly.

You know - for the life of me - I have never
understood how they show "gross" sales and
"net" sales but they seem to be the same amount.
How can "free" ticket be counted in "net sales?"

I contacted my Senators office and a staff member
will inquire for me on Thursday - she is currently
out of town. So maybe later this week I can
tell you how you can get free tickets too.

Coming in a few days, the most extensive
coverage on the lack of action lotteries
take to protect players. Lotteries ignore
the facts. The research by this reporter
was remarkable - an astonishing story
that every lottery player should read.

End July 8, 2014 Posting


6-23-14 - Quick update to new game - Monopoly Millionaires Club -
(yesterday's posting). As I said yesterday, three Commissioners DID
agree to post the rule for comment today. For those of you who
want to read the rule, here is a copy of it (pdf).
(Note: The Texas Lottery did not provide this rule to me)

I changed (corrected) a couple of things below and added
the prizes and allocations. This game is too complicated
for most players and it will fail. This is my prediction. Either
way, I will be posting more about the game after I've
reviewed the rule.

6/22/14 - A couple of things to cover today. One item pertains
to the addition of another new Multi State game called
Monopoly Millionaires Club which will be launched on
Oct 19, 2014. This is another done deal. I don't believe
public comment will "really" be considered as it appears
to me that Mr. Grief has already committed Texas as
a participating state.

They will be discussing and proposing the rule
during the Commission meeting on Monday, June 23.
The Commissioners will pretend to understand and
consider everything but the truth is, they will only
be going through the motions.

Anyway ....I'll tell you what I know
about the game but first ... let's ...

Meet Kelly Cripe In Person!

So many of you sent questions and comments from
my posting last month stating you've never seen the
Texas Lottery Media Director, Kelly Cripe, on TV.

It does seem strange to pay $100K+ per year for someone
who's never (maybe rarely) given an interview and yes, it is
true, there use to be lots of TV and radio coverage
but now-a-days it appears it's not encouraged and often
times is denied.

I asked Kelly again Friday (6/20/14) if she's ever
done an "on camera interview" and for the facts of the
new upcoming game, but as I write this, she has not
responded to either question. Earlier this month, one of
you reminded me that I did have her "on-camera interview"
that was required prior to being hired by the lottery. So,
I'm posting her interview so you can finally see Ms. Cripe
in person. Just click here to watch it. ( it's a wmv file)

(NOTE: This file should open in Windows Media Player
or in Real Player. Also, do understand, this was a test
to see how Ms. Cripe does in front of the camera so what
she's says may not be true. She was not an employee
at the time and it was impromptu TEST interview.)

Just so that you know, there were 3 final candidates
for the position but I am not showing the other two
because they were not hired. I will say that both did
an excellent job in their on-camera interviews -
it was quite obvious they were experienced.
So what do you think about Ms. Cripes interview?
Does she come across like TV reporters do?
(Email me your comments - Please put
"Kelly Cripe" in the subject line)

Now, For A Brief Summary of
the New Upcoming Game ...
Monopoly Millionaires Club

It is important for me to tell you that
I asked for game details from 3 different
lotteries and none responded in time for me
to write this. So here's what I found thus far

The name of the game is Monopoly Millionaires Club.

It will be played once per week and the
cost of a single ticket will be $5.

Players will pick 5 numbers from a pool of 52 numbers
and one number from a pool of 28 numbers.
(5/52 & 1/28)

The odds of winning the jackpot are 1-in-72,770,880.
This means there are 72,770,880 unique
combinations in the game.
(Don't be too impressed with these odds for a "multi
state game" because they will sell fewer tickets. I
would equate these odds to being equivalent in reality
to 1 in 300 million. I'll explain this in detail at a later date.
It involves what's called "coverage."

Jackpots will start at $25M $15 million and it will be capped
at $50 $25 million. It will grow in $5 million increments.

The game will be launched Oct 19, 2014.

There are 10 prize levels. I assume the prize
levels are and the odds for each prize level is:
(I have no idea what the prize amounts are.)

Monopoly Millionaires Club
Match Odds Prize % of Sales
5+1 1 in 72,770,880 Jackpot 32.215%
5 1 in 2,695,218 $100,000 0.742%
4+1 1 in 309,663 $20,000 1.292%
4+0 1 in 11,469 $500 0.872%
3+1 1 in 6,732 $250 0.743%
3+0 1 in 249 $20 1.604%
2+1 1 in 449 $25 1.114%
2+0 1 in 17 $5 6.016%
1+1 1 in 82 $10 2.451%
0+1 1 in 47 $7 2.951%
Overall odds will be 1 in 10.
(Which in reality means
absolutely nothing)
- An Interesting Fact -
To sell every combination for
a single draw in this new game,
sales would be $363,854,400.
Yet, the jackpot will never
been any higher than $25M.
Example of what it takes to sell
this many tickets for a single draw ...

Mega Millions, on Dec 17, 2013,
had a jackpot of $636 million and
sales were $336,545,306.

Even though the Hoosier Lottery has
already adopted their rule, I could not
obtain the prize amounts in time for
this story. Their customer service staff
has no knowledge that this game exists.

The game, admittedly, is a very complicated game.
The best as I understand it, there will be at least 3
ways to win a million dollars which I will explain at
a later date. (To give you an idea though, it'll be
by entering losing tickets via the net, giving a
game piece that wins instantly like a scratch
ticket and by winning a spot on a TV show.

The ONLY good aspect of this game is that instead of
having one or two people winning hundreds of millions, perhaps
hundreds may win $1 million WHEN there is a jackpot winner. This is
what they will be highly publicizing to get you to part with $5 per ticket!

The lottery directors believe that players will spend $5 per ticket
on a draw game because scratch ticket players will spend that much.
I have only one comment to their thinking - either they are unaware
of the fact that for the most part, scratch ticket players do not
play the online games or the lotteries are ignoring this fact. Any
retailer in the country will verify this fact. I learned it back in
1993 and things have NOT changed since.

The lotteries will only talk and boast about SALES. You
never hear them talk about the bottom line. And there is a
huge difference. The only entity who profits from "gross"
sales is the lottery vendors - G-Tech, Sci Fi & Intralot.

Imagine, on this new game, sales for the first draw may
be $40 million (or more) But using $40 million, this would
mean they sold 8 million tickets which will have included
many duplicate tickets. Remember, a single ticket costs $5.
Bottom line... at least 68 million combinations were not
sold meaning in all likelihood, no one will win. It will
be just like the rolls in Powerball and Mega Millions.

But you can be assured that the states will be
talking about the success of the game even though
the only success will be that they took advantage
of the players one more time.

It is a shame they don't just take Powerball or
Mega Millions and cap the jackpot then disburse the
excess money into the low tier prizes. This would
be successful and would give people a reason to play.

One more thing I might mention - in Texas, I'm not sure this
game will be "legal." The instant win - "game piece"- for a
million dollar prize might be a problem as well as entering
tickets via the internet. This has never been successful in Texas.
Not to mention not knowing what the prize structure is yet!

I'll just have to wait to see the Texas rule prior to
completing my analysis of this game.

I think you should all watch these three videos
regarding the new game.You'll learn alot!

- 3 Video's -
Directors Panel Discuss Monopoly Millionaire Club, click here
Terry Rich Explains Monopoly Millionaire Club, click here
Marketing Directors Discuss Monopoly Millionaire Club, click here

After watching these video's, you probably saw where they plan
to offer a $10 online game next. Certainly won't be one I'll play!
You'll also see where they are trying to reach (targeting) the younger
folks who won't play because they've seen their parents and
grandparents lose lots of money. Just two weeks ago I asked a
group of roughly 100 graduates if they had an interest in the
lottery. None had an interest but some like scratch tickets.

- End June 22, 2014 Entry -

----------------------------- here


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The Lotto Report
Dawn Nettles
P. O. Box 495033
Garland, Texas 75049-5033
(972) 686-0660
(972) 681-1048 Fax