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Texas Lottery News ... Read all about it here ...



lottoreport@lottoreport.com

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VIP - Read a bill that was vetoed because it was considered an
"invitation to expand gambling." Click here - pdf - magnify to 150%.


Aug. 28, 2003 - The TLC announced today that Comissioner Elizabeth Whitaker resigned earlier this week. Ms. Whitaker's term was to expire Feb. 1, 2007. The Governor has appointed Rolando Olvera, Jr to succeed her. The Governor's press release is as follows:

Gov. Perry Appoints Olvera to Texas Lottery Commission
AUSTIN – Gov. Rick Perry today announced the appointment of Rolando Olvera, Jr., of Brownsville to the Texas Lottery Commission for a term to expire Feb. 1, 2007. The commission oversees the Texas Lottery and ensures that lottery and bingo games are conducted in a legal and fair manner.

Olvera is a former state district judge and currently is a sole practitioner in a Brownsville law firm. He is member of the State Bar of Texas, the Hidalgo County Bar Association and the Cameron County Bar Association, and he is a fellow with the Texas Bar Foundation. His volunteer activities include serving as the director and vice president of the Children’s Museum of Brownsville, a director of the United Way “Success by Six” program, and a director of the St. Joseph Academy Alumni Golf Tournament.

Olvera earned his bachelor’s degree from Harvard University and his law degree from the University of Texas School of Law.

August 26, 2003 - I think we need to help the 11 AWOL Democrats. Whether you are a democrat or a republican, please read WHY I say this. Click here.

August 19, 2003 - I think all of you should read the following pages if you haven't already.

TLC Cheated Some Lotto Winners
Editorials - Secret Meetings, not public meetings.
(They are breaking more laws and spending taxpayer money just
to re-district. Is re-districting really that important? You decide.
)

Also, to bring you up to date ... Yes, I have requested sales information from all the Mega Million states. These request were made right after each of the drawings. I have had no responses from Virginia or Maryland. Massachusetts and I are "having conversations" but I still do not have their sales figures and the one I do have is questionable.

Also, last week Reagan Greer, the Executive Director of the TLC, sent a letter to all the legislators telling them he was still negotiating a deal with Mega Millions but that it was not a "done deal" yet.

If we [the players] are at all lucky, which we usually aren't, maybe some states are hesitating on plagiarizing Powerball which is what Texas is demanding that the Mega Millions group do. This is WRONG.

August 8, 2003 - Houston Chronicle story confirms ... Texans may not be able to obtain Mega Millions public information. Some Mega Million states, including Texas, may claim they don't have to adhere to the Freedom of Information Act because the game is not run by a "state agency." How convenient ... should you win, you may not be able to verify that you are receiving the correct amount. Ironically, this is why states have a monopoly - supposedly to protect the People. So much for honesty and integrity by our lotteries. Click here.

August 5, 2003 - As I expected, Texas did decide to join Mega Millions. Now they are going to work through the details ... ie: try to change the game to offer a "power play" feature like Powerball and place a cap on the jackpot amount after it reaches a certain level like Powerball.

The reason Texas chose Mega Millions is because our bordering states sell Powerball and they hope to "get some of their money back" on the bigger jackpots by offering Mega Millions. When asked what was in it for players, the answer was ... "the state will make more money." Then the answer was, "The players will have something to dream about [winning $300 milllion] and something to 'try' to win."

They did say that Texas would adhere to the Freedom of Information Act and would provide "total" draw sales to those who inquire. The TLC also said that they had no plans to discontinue any of the current games nor do they plan to change Lotto Texas. They still claim people "love" Lotto Texas.

More news later.

August 1, 2003 - Many of you have asked how someone could have possibly won the $47 million Lotto Texas game the other night so I wanted to explain it to you. It has to do with the "laws of probability." You see, with there being 47.7 millions combinations in the game, the odds are in the lotteries favor that no one will win it "for a while." But as time goes on, like 15 to 22 draws later, the laws of probabilities are against the TLC - as they will probably sell a winning combination no matter how many tickets they sell or what percentage of the combinations they sell. Wednesday night, I would estimate that they only sold 15% of the total combinations but still had a winner.

What they wanted was to have enough draws at higher jackpot levels ($30 to $100 million) so players would "gamble" and buy "more" chances to win. Sales did increase with each draw BUT not nearly like they expected. They expected draw sales, when the jackpot reached $25 million, to be at least $8 million or more, then with each draw after that sales would increase significantly with each draw - all the way up to $55 to $65 million. Then, probably 85% of all the combinations would be sold before there was a winner but they'd still have a chance for the pot to roll because all of the combinations still weren't sold. (If you want to see what draw sales actually were, click here. They were pitiful)

Problem was, they didn't have the sales to boost the jackpot on up before the laws of probability caught up with them. Trust me - they are sick right now because they have to start all over and sales are soooo bad now that the "laws of probability" are certainly in our favor now - our elected officials may get worried about the "projected" income that the pressure may cause the TLC to give us our game back (6/50). I urge you - do NOT buy Lotto Texas tickets if you want the old game back. Anyway, look at the money you're saving as so many of you have pointed out!

One more thing - I really wanted to thank you for all your comments regarding the winners who were cheated, the Mega Millions folks not releasing draw sales and even the editorials I posted about the special sessions the Governor is calling. I really hesitate when I get into "politics" - my mother always told me not to discuss politics and religion ... so ... what can I say? Had it not been for my involvement with the Texas Lottery and all the things I KNOW that they've done and gotten away with - this whole situation of "changing the rules" just irks me no end. I also know that "some" republicans are personally opposed to all that is going on too but won't cross party lines. In a way, I understand, but then in another way, it irritates me because it's just not right to change the rules in midstream and I think they ought to have the guts to say so. Anyway, thanks for all your kind messages of support and agreement. And YES, you are right ... election day will come and we will have our day to speak.

July 28, 2003 - According to the Mega Millions folks, they are NOT a public body - therefore, they are not subject to freedom of information statutes ... Click here.

Another new email address - for the last time - It is lottoreport@lottoreport.com.

July 24, 2003 - In yesterday's Commissioners meeting, the TLC did not lay out their plan regarding new rules or which multi state game they are electing to join. They requested another Commissioners meeting for August 4th at which time they will spell out the plan that they wish to initiate. Remember, you have NO say in what they propose. The new law [to join multi state gaming] takes effect Sept 1, so they're in a hurry to get the ball rolling.

They did say that they probably wouldn't join both (good news) but (bad news) were leaning towards Mega Millions. They'll do anythng for the "almighty dollar."
(See why I say this. Click here)

They attempted to portray that there was nothing wrong with sales - in general - stating that "overall" sales were up by 5.77% - which is really due to the $10 & $20 scratch tickets. They blamed the low interest rate for the slow jackpot growth yet jackpots amounts are driven by sales and sales alone. The interest rate only effects how much they advertise the next jackpot based on what they have to invest for a jackpot winner. No one addressed that fact. To show you how badly Lotto Texas sales are:

5/44 & 1/44 - 23 draws - 5/7/03 thru 7/24/03 - $108,022,385
Previous 23 draws - 2/15/03 thru 5/3/03 - $128,927,381
Prior 23 draws - 11/27/02 thru 2/12/03: $134,580,715

Additionally, let me say, Florida currently has a $75 million jackpot. It will be the 11th draw and their population is 16.7 million. Texas currently has a $41 million jackpot, it will be the 14th draw and the population is 21.7 million.

In spite of all of this, Texas probably will see an increase in sales because no one CAN win so the pot has no choice but to grow and sales will increase gradually. However, the question is - by how much - and that remains to be seen. If you want the old 6/50 game back - do NOT buy ANY tickets no matter how high the pot gets. Speak with your dollars.

I have tried to find out what percentage of the total combinations were sold for last nights drawing and what percentage were quick picks. As soon as I can obtain that information, I will post it. I believe it will help you understand why no one has or can win. Remember, when they only sell 6 million tickets out of 47.7 million total combinations - the odds are in their favor that no one will win and the pot will grow enormously. Wouldn't it be something if Texans didn't support the game and an outsider came in and won it and all that money left the state of Texas. That would really be good for the Texas economy. Huh?

July 21, 2003 - I want to thank all of you for your kind messages regarding the letter I sent to the TLC and for posting Jeff's picks last week. Your messages keep me motivated.

It seems that many of you didn't understand what I meant about the $25 million cap on Powerball jackpots after they reach a record high. I'll try to explain that. First of all, you must understand that winners win or divide a percentage of sales. This is applicable to all prizes. The state keeps 50% of sales, right off the top, and the other 50% is divided among those who hold winning tickets including the jackpot winner. Or, maybe I should say, is suppose to be.

Anyway, you may recall that in Aug 01, Powerball had a $200 million drawing. There was no winner so the next jackpot went to $280 million. Likewise, in Dec 02, Powerball had a $215 million drawing that was not won so the next drawing was advertised at $280 million. Just this month, Powerball had a $200 million drawing, it was not won so the next drawing was advertised at $240 million. As you can see, those jackpot grew by $80M, $65M and $40 million. So, what they are saying is that after the "record jackpot" is reached and if it is not won, then they will only increase the next jackpot by $25 million. I believe the record jackpot is $315M which means that after a jackpot reaches $315 million, the next pot would be $340M.

Now the good news is that they will take the "excess funds" that are not needed to pay the jackpot winner and roll it down to the 5 + 0 winners thus increasing those prizes. To give you an idea of what kind of money we are talking about - the first $280 million jackpot had draw sales of $203 million and $59.5 million of that went to the jackpot winner. The second $280 million jackpot had draw sales of $163 million and $53.5 of that went to the jackpot winner. And finally, the $240 million pot had draw sales of $110 million and $35.9 million went to the jackpot winner.

This means they may have as much as $20 to $40 million EXTRA to divide among the 5 + 0 winners. If there are no 5 + 0 winners, then it rolls down to the 4 + 1 winners. While there are not very many who actually win these prizes, if you did, it could pay in the millions. Bottom line is - they are not giving it all to whoever wins the jackpot. They have drawn a line - so to speak. I hope you've understood this.

Many of you commented about the lotteries wanting to offer such big jackpots, specifically in the hundreds of millions, and how ridiculous you thought this was. I agree. Now here's why our state and federal governments wants to "offer" these prizes. First of all, as you see from above, bringing in $100 to $200 million in 3 or 4 days nets the states 50%. Then, the winner has to pay at least 28% to the federal government. And some states collect a state income tax so they take even more. Now here's the kicker.

Think about what you would do IF you won $300 million. I'm quite certain that the first thing that comes to your mind is that you will take care of your loved ones first. Right? OK - so with $300 million, you could easily give $2 to $5 million (or more) to your parents, children, brothers and sisters etc. Well, guess what. When you give that kind of money to someone, they have to pay federal and maybe state taxes on it too. Now if you don't share with your loved ones, you are still going to die someday so your heir will pay taxes on the money. And remember, you've already paid taxes on that money. Just look at how much of that is going for "taxes." As you can see, the government gives us a game and tells us we "can" get rich, but look who gets most of the money. This is the motivation - or at least - a part of it. They also make money by selling the notes.

This reminds me of something I've been meaning to say to ya'll for a long time. When and IF you play Lotto Texas, Powerball or Mega Millions - ALWAYS pick the Cash Value Option. Do NOT pick Annual Pay. OK?

If you were to ever go to the Commissioners meetings, you could see how their eyes light up when they talk or hear that maybe there will be $200 to $500 million jackpot. That was a big part of the "sales pitch" made by Mega Millions folks (besides the fact that their drawings are on Tuedays and Friday so they claim Lotto Texas sales won't be effected as badly). They hold the record for the highest jackpot - it was a $350 million jackpot on 5-9-00 and they sold $195.5 million tickets. Of that, $62.6 million went to the jackpot winner. Now on 4-16-02, they had a $325 million pot and sales were just $168.8 million - at that time there were 7 participating states. Just last month, they had a $180 million jackpot but sales were only $75 million yet they had 10 states participating. I believe you can see how sales are declining for these games. Thank God, people are wising up. (If you haven't read my letter, click here.)

At any rate, there is a Commissioners meeting on Wednesday and I do plan to be there. Maybe we'll finally find out what the TLC's plan is. If history repeats itself, when Texas encounters declining sales, they respond with rule changes. They increase the odds of winning and offer more $2, $3 & $5 "prizes." These changes don't and haven't worked. And yet, they display a profound lack of understanding in their own role for declining lottery sales.

July 10, 2003 - I apologize for the difficulties many of you had last night in getting to my web site and the difficulties you've encountered using the forms in the past 2 weeks. Since I started posting the Powerball and Mega Million drawing results, I've had an over abundance of hits and I think my server was on overload last night with the $240 million drawing. Even I had a hard time uploading the info - it took what seemed like forever. Next time I'll do a "fast" page with results only. That should solve this problem.

With regarding to the forms not working, my server had the problem and they finally got it fixed Tuesday. I know - it took too long to address but it's fixed now.

Yes, I do think Texas WILL join both Powerball and Mega Millions. And YES, I really am coming out with the scoop on both games and a recommendation for ya'll. When I get the info posted, I think everybody will find my data interesting to say the least. It has taken longer than anticipated and there are several very good reasons.

The TLC started their "serious" research on Feb 13th but I didn't start until 4 to 5 weeks ago and I still don't have all of Mega Millions info. In a nutshell, I would say that the Powerball people (MUSL) are consumer friendly whereas the Mega Million people are not. I've got to be very careful and as accurate as possible in posting this data. I do have their pages built so it is forthcoming. I will notify everybody on my email list when its up and if you are not on my list, then just watch for it.

YES, the people of Texas really are "speaking with their dollars" with regard to the new Lotto Texas game - 5/44 & 1/44. Lotto Texas sales are breaking all time record lows with each and every drawing. The TLC is banking on reaching a $50 to $100 million jackpot and they hope to recover at that point as sales "should" soar - but I really wonder if they will. When that time comes, all I can say is that I hope you all remember that you only need ONE ticket to win and you'll win if GOD has picked you to win. Please, don't wake up with a "financial hangover" the day after trying to win that jackpot - only a few people will win anything worthwhile. More later.

June 25, 2003 - As many of you have pointed out in the last several days ... YES, the Texas Lottery does have a "comment form" posted on their web site asking players for input regarding Texas joining "a multijurisdiction lottery game" - but tell me - who in the dickens knows what this means or what this is?

Just in case you didn't notice, the TLC did not say "which games" nor did they tell you anything about "multijurisdiction" lottery games. How can WE form an educated opinion or comment intelligently about something WE know absolutely NOTHING about?

Think about it ... comments generally come after a "proposal" is made and "proposals" give all the details so one can comment intelligently.

So, let me call a spade a spade and just say outright ... It does NOT matter what you say or what you want - Texas is going to join either Mega Millions or Powerball.

The reason it doesn't matter what players say is because Governor Perry signed house bill 3459 and it says .... (b) The Texas Lottery Commission may adopt an emergency rule under Subsection (a) of this section without prior notice or hearing, or with any abbreviated notice and hearing as the commission finds practicable, for the implementation of the change in law made by Subchapter J, for multi jurisdiction lottery games, Chapter 466, Government Code. Section 2001.034, Government Code, does not apply to an emergency rule adopted under this section. (2001.034

(c) Notwithstanding any law to the contrary, including any law enacted during the 78th Legislature, Regular Session, 2003, to promptly implement Subchapter J, Chapter 466, Government Code, as added by this Act, a contract for the acquisition or provision of facilities, supplies, equipment, materials, or services related to the initial operation of multijurisdiction lottery games under these subchapters is not subject to: (1) Subtitle D, Title 10, Government Code; (2) Section 466.101, Government Code; (3) Chapter 2161, Government Code; or (4) any competitive bidding requirements or contract requirements provided by any other law or by rules of the Texas Lottery Commission ....

Now, what this means is ... The TLC can "declare" joining Powerball or Mega Millions an "emergency" and just join one or both. The reason it is an "emergency" is because the Comptroller estimated that the state will make $101 MILLION dollars in fiscal 2004 if Texas joins one of these two games.

Bottom line ... Texas is desperate for money and will do anything for financial gain - including taking advantage of it's people by offering games with such high odds. Games such as Lotto Texas, Powerball and Mega Millions insures that players will probably not win the jackpot until they sell AT LEAST 3/4 of the total combinations for the draw - generally speaking. This equates to: 35.2 million Lotto Texas tickets; 90 million Powerball tickets; and 101.2 million Mega Million tickets!

Just for the record, the reason that form is on the TLC web site is so that the TLC can "honestly" say that they did in fact alert the people to a probable possible change and they did in fact give the people the opportunity to be heard. The TLC got their hands slapped for the latest Lotto Texas rule change (5/44 & 1/44) and so they are taking steps to insure their "done deals" are not quite so obvious.

So, even though I think our comments will go unheard again and this is another DONE deal - we will still comment for several VERY important reasons.

However, I want you to know the facts about the games first. As of this writing, I have obtained roughly 80% of the data I need to evaluate the games fully and am in the midst of compiling it and summarizing it. These games involve many states - Powerball has 24 states and Mega Millions has 10 states - this makes figuring everything out a little bit more complicated for me. Plus each one has gone through 3 major matrix changes - each time making the game harder to win so as to increase sales. It appears that adding states didn't increase their sales so they've done what Texas has done - make the games harder to win to drive jackpots up thus entice consumer spending.

Anyway, I will be posting another form and I sincerely hope to have it up by late Thursday or Friday at the latest. While the TLC has a deadline of accepting comment by July 14, even though they won't even hear or have details about these games until June 30th (so they say), what I plan for us has no quick deadline.

Lotto Texas sales are WAY down. Please do NOT buy Lotto Texas tickets and if you just have to - then remember, if God has picked you to win, then you only need ONE ticket. The only way we will get our old game back is to speak with our dollars - obviously - the state is desperate for money and they certainly SHOULD be worried about right now. The way things are going, they just may not see that $56 million Lotto Texas increase that they were anticipating as a direct result of the rule change (5/44 & 1/44).

Just remember, jackpots are driven by sales - if sales aren't there, the pots can't grow quickly to entice spending. Since the odds are that someone should win about every 20 draws, we can at least prevent them from selling $50 million tickets in just 3 days.

Also, so that you know it, only a handful of our legislators asked the TLC to rescind the rule. The reason, they want that money the TLC has projected. This was how they raised taxes BUT it's an optional tax - you pay it only if you choose to pay it. It just so happens the majority of our legislators choose to NOT pay this tax themselves! Imagine that.

Finally, the Governor also signed another bill - HB2922 - that states that some of the unclaimed prize monies SHALL be deposited into the General Revenue Fund and can be used however legislature deems necessary. Click here for details.

June 5, 2003 - UPDATED - The Governor has a bill in front of him to sign that says the TLC can adopt rules and new games WITHOUT taking public comment first. There should be NO law that gives any Lottery that kind of freedom. If You OPPOSE the signing of this bill, just click here & complete the form.

FYI - Rep Ron Wilson of Houston is the one who sold them on this. If he's your state rep, you should tell him what you think about your rights to be heard. He says he "trusts" the TLC and they should have this freedom.

I will be sending a message out to everybody by email today or tomorrow bringing everybody up to date. But to quickly address some of your questions - (1) Yes, I've made an Open Records request to obtain any and all letters the TLC has received from the legislators requesting the Lotto Texas rule be reversed (2) Yes, Lotto Texas sales are WAY off (3) To pull off a successful boycott, we would have to have hundreds of us meet in one location to protest and invite the media to get the word out to all (4) Yes, I am preparing for us to boycott - I'm just waiting for the right time and a few pending answers first (5) Whatever you do, do not buy any lotto tickets no matter how high the pot gets - you won't win and this way your "state taxes" won't increase and you'll have a little extra money so you CAN pay your increased local taxes and higher fines or fees!

May 21, 2003 - I've posted the latest news on another page. Click here and read the postings. I think you'll find them of interest.

May 6, 2003 - As you all know, we've been fighting the rule change for Lotto Texas since February. But few have listened to us - until now. (Link no longer works)

Also, I have a complete re-cap of our efforts posted on another page. IF by chance you haven't been following the events, I encourage you to click here and read them. You will learn alot.

Right now my only fear is that our "lawmakers" (legislators) will use the excuse that "investigations" are under way regarding the rule change and still try to tell us that there is nothing they can do. Which would be a bunch of baloney. All they have to do is write ONE letter to the TLC and request that the new rule be voided, rescinded or reversed because their constituents do not want it and obviously, the TLC did NOT consider comment nor did the TLC comply with the laws in adopting the new rule.

IF our legislators pull this stunt and allow the game to proceed, so the state can make more money at our expense, then I will be posting another feedback form so you can ask your legislator to write that letter. We will not stop until the rule is reversed - the people spoke and we deserve to be heard. It is OUR game. Please, go read this page - I am posting all the news there for now. Here's another link.

Continued....click here to read more

 

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