From The Texas Register ...
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Page 2 of 4 Comment: Several commenters indicate that there are too many different Lottery games and that the Commission should eliminate Texas Million, Cash 5, and Pick 3. Response: The Commission disagrees with the comment because each of the Lottery online games was designed to meet the different requests of the players. For example, Lotto Texas offers higher jackpots, Texas Million offers at top prize of $1 million with lower odds, Cash 5 offers pari-mutuel larger prizes and Pick 3 offers smaller prizes with daily drawings. Comment: Several commenters indicated that the "Lotto game is not broken, please don't try to fix it." Response: The Commission disagrees with the comment because sales history information indicates that Lotto Texas sales have declined. Comment: Several commenters indicated that Cash 5 should go back to drawings twice a week. Response: The Commission does not believe the comment is relevant to the proposed amendments on the Lotto Texas rule. Comment: Several commenters suggested that the Commission should increase the amount of winners and increase the amount of the jackpot.
Comment: Several commenters indicated that Texas should have Powerball. Response: The Commission disagrees with the comment. Lotto Texas sales have declined and the Commission believes it should address this problem first. Comment: Some commenters suggested that the numbers should be decreased from 50, not increased. Response: The Commission disagrees with the comment because current Lottery research shows that 81% of people polled said they wanted multimillion dollar jackpots and 60% would accept more difficult odds for a bigger grand prize and better chances to win smaller prizes. Comment: A few commenters indicated that players should be able to choose cash option or annuity at the time the ticket is claimed. Response: The Commission understands the comment but believes the comment is irrelevant to the reasons why the Commission proposed the amendments-declining Lotto Texas sales. Comment: One commenter asked the question: How are decreasing the odds from 1:15M to 1:25M better for the player? Response: The Commission has conducted player research that indicates 81% of people polled said they wanted multimillion dollar jackpots and 60% would accept more difficult odds for a bigger grand prize and better chances to win smaller prizes. The Commission, by proposing the amendments, is responding to player requests. Comment: A few commenters said there should be a 4 number daily lotto game. Response: The Commission disagrees with the comment insofar as the proposed amendments are concerned since the comment is irrelevant to issue at hand, declining Lotto Texas sales. Whether the Commission introduced a 4 number lotto game would not increase Lotto Texas sales and may adversely affect sales because of cannibalization. Comment: A few commenters want to add a bonus ball to increase the chances of winning. Response: The Commission disagrees with the comment because amendments to the Lotto Texas rule were proposed earlier this year to add a bonus ball to Lotto Texas. During the comment period, player comments were opposed to this proposal. Comment: A few commenters suggested the Commission give retailers a higher monetary incentive. Response: The Commission understands the comment but believes it is irrelevant to the issue at hand and what the proposed amendments are intended to address, declining sales. Comment: One commenter suggested selling tickets outside the State of Texas. Response: Currently, to sell Texas Lottery tickets outside Texas would require entering into a compact with the state in which Texas Lottery tickets would be sold. The State of Texas has not entered into such a compact, nor does it contemplate doing so. Comment: Some commenters want the Commission to cut marketing and advertising to save money to put into the lotto. Response: The Commission disagrees with the comment. Riders in the Commission's legislative appropriation prohibit the use of advertising dollars for other operating expenses. Further, the money that goes to players in prizes from Lotto Texas is generated from ticket sales and is distributed according to the current game rule. Comment: A few commenters indicated that players should get 2 plays for a $1. Response: The Commission disagrees with the comment because giving players 2 plays for $1 would increase the number of plays per game but not help to offer higher prizes or larger jackpots. Response: The proposed rule matrix change which increases the number of balls from 50 to 54 statistically will create larger jackpots. Comment: Some commenters indicated the Commission needed better marketing and advertising. Response: The Commission disagrees with the comment because the comment is not relevant to the proposed amendments. The Commission's marketing and advertising efforts address all its products. If the commenters believe the reason Lotto Texas sales have declined is because of poor marketing and advertising, all Texas Lottery products' sales would be in a decline which is not the case. Comment: A few commenters indicated that retailers need friendlier and better trained clerks. For example, clerks do not ask if a person wants lotto tickets and some clerks complain when a person asks for certain scratch cards. Response: The Commission disagrees that the solution to declining Lotto Texas sales is friendlier and better trained clerks. If sales were declining as a result of unfriendly and untrained clerks, all Lottery products sales would be declining which is not the case. Comment: Some commenters suggested that overhead of the lottery should be cut to reduce costs, rather than change the game. Response: The Commission disagrees with the comment because reducing the Commission's operating expenses would not stop Lotto Texas sales from declining. Comment: Some commenters indicated that the current payouts are too low. Response: The Commission agrees with the comment and the proposed amendments reflect an increase from 50% to 55% payout. You failed to say that 4.24% of this increase goes only to the 6 of 6 winner. Comment: One commenter stated that people do not play because there aren't enough winners. Response: The Commission disagrees with the comment because as of April 5, 2000, there have been 398 jackpot winners out of 778 drawings and Lotto Texas sales are still declining. You failed to recognize that there have been over 7 billion Lotto Texas tickets sold and only 398 winning tickets.. Comment: A few commenters indicated that the prize money should be increased to attract more players. Response: The Commission agrees with the comment and the proposed amendments reflect an increase from 50% to 55% payout which will increase the prize money to the players. Comment: A few commenters indicated that they will not play Powerball. Response: The Commission disagrees with the comment insofar as the proposed amendments are concerned because the proposed amendments do not contemplate participation in Powerball or any other multi-state game. The proposed amendments provide for changes to the Lotto Texas game only. Comment: Some commenters want to drop the 3 of 6 payout and increase the 4 and 5 of 6 greatly. Response: The Commission agrees with the comment, in part, and disagrees, in part. The increased 55% payout will increase the payout at the 4 of 6, 5 of 6, and 6 of 6 levels. The Commission disagrees with the suggestion to drop the 3 of 6 payout because the Commission believes players want to win at lower levels as well as win the jackpot. Comment: Some commenters suggested that Lotto Texas should be a once a week drawing instead of two. Response: The Commission disagrees with the comment because conducting drawings once a week would not make an impact on efforts to pay players higher prizes and larger jackpots which is primary focus of the proposed amendments. Comment: One commenter wants to bring back Scratchman. Response: The Commission disagrees with the comment because bringing back Scratchman would not necessarily increase Lotto Texas sales. Comment: One commenter asked the question: "What happens to all of the money?" Response: Currently approximately 57% goes back to players in prizes, 5% goes to Lottery retailers for sales commission, 7% is used for Lottery operations, and 31% goes to the Foundation School Fund. Comment: One commenter suggested matching numbers from any line on a five line ticket to win. Response: The Commission disagrees with the comment because this type of play style would require a minimum $5.00 purchase which the Commission does not believe Lotto Texas players would be willing to spend at lower jackpot levels. Also, this suggestion would change the proposed matrix to allow a player to have 30 possible numbers from which to have 6 numbers match the 6 drawn from the 54 balls. The Commission believes this approach would result in lower jackpots. Player research indicates that players want higher jackpots. Comment: One commenter stated that public meetings should be held in all major cities because not everyone can go to Austin. Response: The Commission disagrees with the comment because it is not relevant to the proposed amendments. Further, with regard to providing comment on a rulemaking, interested persons may submit written comment. Comment: One commenter indicated that the winning numbers should be picked only from the tickets sold so that each drawing has at least one winner. Response: The Commission disagrees with the comment because if every drawing had a winner the jackpot would never rise above $4 million. Depending on sales, the Commission may have to reduce the jackpots to even lower amounts. Also, current Lottery research indicates that 81% of people polled said they wanted multimillion dollar jackpots. Comment: One commenter wants to lower the starting jackpot amount. Response: The Commission disagrees with the comment because player research indicates that players want higher jackpots, not lower jackpots. However, if sales continue to decline the starting jackpot may need to be lowered from $4 million to $3 million. Comment: A few commenters want the Commission to continue to draw numbers until there is a winner and make 104 millionaires a year. Response: The Commission disagrees with the comment because current Lottery research shows that 81% of people polled said they wanted multimillion dollar jackpots. If the Commission continues to draw numbers until there is a winner, the jackpot amount will always be at low levels. Comment: One commenter suggested capping the jackpot at a certain amount and save the excess money for the next jackpot. Response: The Commission disagrees with the comment because player research indicates that players want multimillion dollar jackpots. Comment: One commenter stated that players want to have either 48 or 49 numbers or charge $1.25 per play to increase income. Response: The Commision disagrees with the comment because having fewer numbers would increase the number of jackpots won at the starting jackpot levels. Recent Lottery research shows that 81% of people polled want multimillion dollar jackpots. Increasing the cost of playing may appear to generate more sales, but players would have to be willing to spend more money per play and Lotto Texas sales are already declining due to a decline in the number of people playing. Comment: Several commenters indicated that the usual customers will play less in the end. Response: The Commission disagrees with the comment because player research indicates that players want higher jackpots. The proposed amendments are intended to generate higher jackpots and therefore the Commission believes it will have more players, not less. Additionally, Lotto Texas core players (usual players) are already playing less with the current game, based on sales information at the lower jackpot levels. Comment: Several commenters asked the question: "Why mess with something that already works?" Response: Lotto Texas is not working if fewer players are playing and sales continue to decline. Comment: A few commenters stated that the Commission has spent money going around the state asking for public opinion but knowing that their minds are made up. Response: The Commission disagrees with the comment because until the Commission receives comment, considers comment, and takes formal action, no action has been taken. Comment: A few commenters indicated that "you have to spend money to make money." Response: The Commission doesn't understand the significance of the comment. Comment: A few commenters indicated that they will go out of the State to purchase lottery tickets if the changes are made. Response: The Commision understands the comment. The proposed game changes statistically result in jackpot amounts higher than those available in some other states except jackpots in connection with muti-state games. Having higher Lotto Texas jackpots as a result of the proposed amendments will allow the Commission's jackpots to be comparable to those in multi-state games. Comment: Some commenters stated that there is not enough advertising to create interest and the Commission should show more winners and have more hoopla. Response: The Commission disagrees with the comment if the comment is to suggest not to change the rule but to have more advertising in the manner indicated. The Texas Lottery's advertising budget is used to promote all its games. To advertise statewide there are 20 designated market areas to cover. In addition to television, radio and newspaper advertising, this money is spent on outdoor billboards, signage, in-store point-of-sale materials and other forms of mass media. The Commission advertises all its products appropriately; however, Lotto Texas sales are declining while the other products do not appear to be. Comment: A few commenters asked the question: "Why is the Commission complaining about so many winners in a row?" Response: The Commission is concerned with the decline in sales as a result of the inability to generate high jackpot amounts. Comment: A few commenters indicated that the Commission should hire an experienced supervisor of gambling and lottery operations and get someone who knows how to give the public what they want--better odds and bigger payoffs. Response: The Commission disagrees with the comment if the comment is intended to have the suggestion be an alternative to changing the Lotto Texas game. Research is conducted with Lottery players to get their input and opinion on Lottery products. For example, monthly tracking studies, annual segmentation studies, mini-labs and focus groups are conducted throughout the state. Such research indicates that players want higher jackpots. Hiring a person such as the one described in the comment will not accomplish the commenters' desired result. Comment: One commenter suggested allowing more advanced drawing purchases to 26 or 52. Response: The current Lotto Texas game and the proposed amendments do not offer advanced draws. The multi-draw feature is available currently and is not being proposed to be deleted as part of the proposed amendments. Comment: One commenter stated that for each $5 purchase, a player should be able to purchase insurance for $1 to pay Federal Income tax if the player wins. Response: The Commission disagrees with the comment because the suggestion would not appear to increase sales or result in higher jackpots. Comment: One commenter suggested the Commission "leave the Lotto alone and live with in your budget, we do." Response: The Commission disagrees with the comment to the extent the comment is suggesting that the Commission could supplement Lotto Texas sales or the revenue derived from such sales through savings from the Commission's operating budget of 7% of sales. The sales from all products set the Commission's operating budget. The issue presented by the proposed amendments is not a question of "living within a budget". Instead, it is a question, in part, of addressing player requests for higher jackpots. Finally, the Commission has historically remained within its operating budget. In fact, each year, it has returned money from its budget to the State of Texas. Comment: One commenter wants the Commission to offer "bonus tickets" which give 11 numbers for $10, 22 numbers for $20, etc. Response: The Commission disagrees with the comment because this type of discounting will not address player requests for higher jackpots. Comment: One commenter suggested splitting the total jackpot to pay 40% on Wednesday and 60% on Saturday, shifting the incentive to buy Friday, which is payday. Response: The Commission disagrees with the comment because the jackpot cannot be split between draws since the estimated jackpot amounts are based on the sales for each draw. Also, if the jackpot was won on Wednesday, there would be nothing left for Saturday. Additionally, to the extent the comment is suggesting that the Commission focus on "payday" as the day people are most likely to have more money than other days, and, therefore, the best opportunity for the Commission to sell tickets, the Commission disagrees. The Commission wants people to play responsibly and spend only what they can afford. Comment: One commenter suggested establishing a minimum number of tickets that one can buy. Response: The Commission disagrees with the comment because the Commission does not want a player to buy more tickets than a player believes he/she can afford. The Commission wants people to play the Lottery responsibly. Comment: One commenter indicated that if the Lotto changes the commenter will buy tickets out of state. Response: The purpose of the proposed amendments is to increase the jackpots to higher amounts. At times, the jackpot amounts may be higher than those in other states. Comment: One commenter suggested that if there were more winning possibilities there would be more players. Response: The Commission disagrees with comment because as of April 5, there have been 398 jackpot winners out of 778 Lotto Texas drawings. The proposed amendments are in response to player requests for higher jackpots. More winning possibilities will result in low jackpot levels. Player research indicates that players want higher jackpots, not lower. Comment: One commenter suggested that people will not play the lower jackpots because of the increased difficulty in winning. Response: The Commission disagrees with the comment because players have already reduced their playing at the lower jackpot levels. Lottery research shows that players are more concerned with higher jackpot amounts than chances of winning. Additionally, the odds of winning at high jackpot levels are the same as at lower jackpot levels. Comment: One commenter suggested that there are fewer big winner scratch cards because the sales are spread over too many games. Response: The proposed amendments are on the Lotto Texas rule and do not address scratch games. Therefore, the comments are not relevant to the proposed amendments. Comment: One commenter indicated that the Commission should increase the retailers' commission to help promote lottery in their outlets. Response: The Commission disagrees with the comment to the extent the comment is intended to suggest that increasing retailers' incentives will provide for higher jackpots. Comment: One commenter stated: "We have been a better than average outlet for Lotto and don't want anything to change that. Please consider this proposed change with more foresight than when the scratch cards were changed." Response: The purpose of the proposed amendments is to increase Lotto Texas sales and create higher jackpots. The purpose of proposing amendments is to receive public comment so the Commission can fully consider the issues presented. Comment: One commenter suggested the Commission lower its cost by cutting its staff of high paid executives that don't do anything. Response: The Commission disagrees with the comment to the extent the comment is suggesting that Commission staff "don't do anything". Additionally, the Commission disagrees with the comment because lowering its cost by a staff reduction will not result in higher jackpots. The proposed amendments are intended to address player requests of higher jackpots. Comment: A few commenters indicated that "officials are taking money away from the jackpot." Response: The Commission disagrees with the comment because the money for the jackpot comes from the sales for the game. No money is taken from the jackpot amount with the exception of taxes at the time the prize is claimed. Comment: One commenter suggested keeping the balls at 50 and pay a set amount for 3 of 6, 4 of 6, and 5 of 6. Response: The Commission disagrees with the comment because it would have an impact on the jackpot amount. The 3 of 6 prize amount is currently the only one with a guaranteed prize amount of $3. The 4 of 6 and 5 of 6 prize levels pay out on a pari-mutuel basis, each representing a percentage of total prize pool. Comment: One commenter wants the Commission to advertise how much money a million dollars really is for people. Response: The Commission has advertised this message in the past. Therefore, while the Commission agrees with the suggestion, the Commission does not believe it addresses player requests for higher jackpots. Comment: One commenter suggested making all lotto payments cash to reduce administrative costs. Response: The Commission disagrees with the comment because some players want to have payments over time. The Commission wants the players to have control over this decision. Further, reducing administrative costs do not address player requests for higher jackpots. Comment: Many commenters wants to keep the game the same and lower the odds of winning. Response: The Commission disagrees with the comment because player research shows that players prefer to play at the higher jackpots. Lowering the odds would result in more frequent winners at the lower jackpot levels. Comment: One commenter suggested increasing payouts to increase revenue. Response: The proposed amendments increase the prize payout from 50% to 55%. Comment: One commenter stated: "It seems that a high instance of big Jackpots are won in the southern portion of the State. It seems that quick pick winners are concentrated in the Houston area." Response: The number of winners in a given area is relative to the population of people playing in that area. Comment: One commenter stated: "I will only play the large pots if the changes take place." Response: The commenter's statement is representative of player requests for higher jackpots. Comment: One commenter suggested budgeting the money for the Lottery on the amount previously earned, not on anticipated funds. Response: The Commission does not understand the comment. If the comment is intended to indicate that a budget should be based solely on historical information and not on expected sales, the Commission considers all relevant information when it creates its budget. However, the comment is irrelevant to the proposed amendments. Comment: One commenter indicated that people will spend their money in the casinos in Louisiana. Response: The Commission acknowledges the competition for discretionary dollars. However, the purpose of the proposed amendments is to respond to player requests for higher jackpots and to increase Lotto Texas sales. Comment: One commenter asked the question: "What are the odds of the numbers coming up in consecutive order?" Response: The question is irrelevant to the proposed amendments. However, the Commission has not conducted a statistical analysis on this question. Comment: One commenter indicated that with the cash option one has to wait for the jackpot to be over 10 million to play because of the low payout. Response: With the proposed changes, statistically the Commission should reach higher jackpots more quickly. Comment: One commenter indicated that the balls are not mixed thoroughly because there are repetitious numbers. Response: The Commission disagrees with the comment. Prior to the drawings the Commission's Security staff and independent auditors conduct a series of test of nearly 300 checkpoints to ensure the randomness, security and integrity of the games are maintained. This includes testing of the drawing machines to make sure that are operating properly. Comment: One commenter suggested having a live drawing with 6 blind-folded people, each will draw a ball and someone calls out the numbers. Response: The Commission disagrees with the comment. This method of drawing would not be secure because the Commission would be relying on 6 people instead of the tested performance of the drawing machines. Comment: One commenter indicated that players are getting tired of constant non-winning tickets. Response: The Commission disagrees with the comment because there are many winners in each drawing of Lotto Texas. Comment: One commenter indicated that if people won occasionally, they would play more. Response: The Commission disagrees with the comment to the extent it suggests people are not winning because people are winning. However, the proposed amendments are intended to address player requests for higher jackpots. Comment: A few commenters suggested dropping the 3 of 6 number payout. Response: The Commission disagrees with the comment because player research suggests that players want to win at the lower lever as well as have higher jackpots. Comment: One commenter suggested redirecting the money the lottery earns into funds people support. Response: The Commission disagrees with the comment because all Lottery proceeds go to the Foundation School Fund and any redirection of Lottery proceeds is a policy decision for the State to decide, not the Commission. Continued |
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