From The Texas Register ...
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Page 3 of 4 Comment: One commenter indicated that the average person doesn't have the money that they had in 1992 to spend on the lottery with expenses increasing and salaries decreasing. Response: The Commission wants players to play responsibly and only spend what they can afford. Comment: One commenter suggested having Lotto on Saturday only. Response: The Commission disagrees with the comment because only having one drawing per week, a Saturday drawing, would lessen the players' opportunity to play and adversely impact sales and affect jackpot amounts. Comment: One commenter indicated that Lotto should be competitive with free on-line sites. Response: The Commission disagrees with the comment because the Commission is to generate revenue for the State of Texas. If there were no cost associated with playing there would be no revenue or prizes to return to the players. Comment: One commenter believes that any money the State receives from the Lottery is free money. Response: The Commission disagrees with the comment because pursuant to state law proceeds from Lottery sales go to the Foundation School Fund. Comment: One commenter indicated that the more the Commission messes with the game, the more the public loses trust. Response: The Commission, by proposing the amendments, is attempting to respond to player requests as well as increase sales. Comment: One commenter suggested posting the winners on the internet after each drawing and the next drawing amount right away. Response: Winning numbers are posted on the Lottery's website at www.txlottery.org. Information on actual winners is not known until players claim their prize. Comment: One commenter suggested giving 5 free quick picks for 3 of 6 numbers. Response: The Commission disagrees with the comment. Player research indicates that players want money, not Quick Picks. However, the proposed amendments offer an increased prize of $5 from the current $3 prize for matching 3 of 6. This would give players the option of buying $5 worth of Quick Picks if the player chose to do so. Comment: One commenter suggested giving away a million dollars a day, six days a week tax free and have better odds. Response: The Commission disagrees with the comment because the funding is not available. Comment: One commenter suggested advertising the winners more. For example, there were no ads showcasing Hollywood. Response: Winners have the option not to participate in publicity. Comment: One commenter indicated that taxes have already been paid on the money in the Lottery, why pay them again. Response: The Commission disagrees with the comment because taxes have not been paid on the money until a winner is determined and the prize is paid. Comment: One commenter indicated that increasing the odds to 1:25 million will lose more players. Response: The Commission disagrees with the comment because the Commission is losing players with the current game. Lottery research shows that players want higher jackpots. The increased odds will allow for jackpot growth. The proposed amendments should bring lapsed players back into the game. Comment: One commenter indicated that eight-liners are causing Lotto sales to slump. Response: The Commission, by proposing the amendments, is, in part, responding to player requests for higher jackpots. The Commission disagrees with the comment to the extent that the comment suggests the play of eight-liners is the sole or primary cause of the decline in Lotto sales. The Commission believes that if the comment is correct, all Lottery products sales would be in a decline, which is not the case. Comment: One commenter asked the question: "Does it cost too much to air the drawings on the news?" Response: It is expensive to use paid advertising to show the drawings. The drawings are still filmed live and broadcast via satellite for the TV stations to broadcast. It is the choice of each station to broadcast the drawings and fit them into their airtime. Comment: One commenter wants to decrease the amount paid to the Lobbyist. Response: The Commission disagrees with the comment because the Texas Lottery Commission pays no lobbyist. Comment: One commenter indicated that the media sometimes prints the wrong numbers and the Lottery does not correct it. Response: The drawing numbers are verified and faxed to the media. The newspapers are responsible for publishing the correct numbers. Comment: One commenter indicated that if there are no winners, there are no players. Response: The Commission agrees with the comment. Comment: One commenter indicated that the state is becoming greedy. Response: The Commission disagrees with the comment because the proposed amendments are intended to address player requests for higher jackpots as well as increase sales. Comment: One commenter suggested modeling Lotto Texas after the Canadian Lottery. Have larger pay outs for 5 of 6 numbers and leave the number of balls at 50. Let people enter more than 6 numbers on a draw. A 7 number ticket lets customers believe that they have a higher chance of winning. Charge more for tickets and let people buy 7, 8, and 9 numbers combinations, raising the price more for each. Response: The Commission disagrees with the comment because the proposed amendments offer a higher payout of prizes at all levels. Amendments were proposed in the past that suggested a 7th bonus number and received negative comment from players. Charging more for the tickets and adding different combinations would make for a more complicated game and comments received in connection with past proposed amendments indicated a desire not to complicate it. Comment: One commenter stated: "The pots will be slow growing with the changes. I will save my money on the lower pots and only play the large ones." Response: The comment is representative of how players are playing Lotto Texas today. With sales declining as fewer people play, jackpots remain smaller. Comment: One commenter suggested having the drawing at 6:00 p.m. on the news, so they will carry it live. Response: The Commission cannot mandate a station broadcast the drawing. Commission: One commenter suggested selling tickets 24 hours a day. Response: The Commission disagrees with the comment because there must be a draw break after each drawing takes place for the system to recognize whether a ticket with the winning numbers has been sold. The retailer's ability to sell tickets is based mostly on the retailer's business hours. There are not enough retailers who are open 24 hours a day to warrant keeping the system up through the night. Comment: One commmenter suggested that people have stopped buying tickets because the 3 of 6 number payout is to low. Response: The proposed amendments offer an increased prize amount of $5 from $3 on the 3 of 6 prize. Comment: One commenter stated: "We don't have California's population to increase the odds 1:25 million." Response: The Commission proposed the amendments to increase sales and have higher jackpots. The design of the proposed matrix was not based on a comparison of California's population. Comment: One commenter stated: "If Texas is hurting that much for money, why not have a state income tax that will allow Governor Bush, Linda Cloud and the Texas Lottery Commission to play after all, the Lottery is nothing more than a self imposed tax." Response: The Commission disagrees with the comment because the proposed amendments are intended to address player requests for higher jackpots as well as increase sales. Also, the Commission has no authority to impose a tax. Comment: One commenter asked the question: "Does the State have a graph of Lotto sales by day and/or week since its inception?" Response: The Commission has sales information but not in graph form. Comment: One commenter asked the question: "Why are the sales and jackpots graph presented in such a way as to imply that the Lottery is losing money? It is deceitful and dishonest." Response: The Commission and, more importantly, the state is not losing money. The Commission continues to return to the state a significant amount of money for the Foundation School Fund. However, sales are declining because players are spending less and playing less frequently. Comment: One commenter asked the question "Why don't Cash 5 dollars roll like Lotto?" Response: The question is irrelevant to the proposed amendments. However, each Lottery game is designed differently to appeal to a different segment of Lottery players. Comment: One commenter suggested having lifetime winners who get $1000 per week. Response: The commission disagrees with the comment because the suggestion would not result in high jackpots. However, the Commission does have an instant game that offers $1000 week for 20 years. Comment: One commenter indicated that the pot will rise slowly and if someone from out of state wins, Texans will be inclined to play less. Response: The Commission disagrees with the comment because the more people play, the more quickly the jackpots will increase. Having a winner from out of state could happen at any time, now or if the game is changed. Comment: One commenter suggested that the store clerks should be rewarded for selling tickets to encourage them to sell. Response: The Commission conducts clerk incentive promotions occasionally. Comment: One commenter suggested eliminating the small prizes and decrease the odds and let players win and split the big prize. Response: The Commission disagrees with the comment because player research indicates that players not only want to have the opportunity to win at lower levels but also want higher jackpots. Comment: One commenter stated: "It didn't work in California, New York and is not working in Florida, so why will it work in Texas?" Response: The Commission is aware of the experience in these states. The Lotto game changes in California and New York were different than what has been proposed in connection with Lotto Texas. Additionally, the Commission is aware that very recently, California made a matrix change to its Lotto game. While it is premature to know whether the change is successful, the act alone by California to change its Lotto matrix is instructional, especially given California's past experience with changing its Lotto matrix. Also, the experience in Florida appears to indicate an increase in Lotto sales based on a change in Florida's Lotto game. The changes in Florida's Lotto game are similar to the changes proposed in the Lotto Texas game. Comment: One commenter indicated that retailers need a reason to push sales in the stores. Response: The Commission believes that the proposed amendments will benefit retailers because retailers are paid 5% in sales commissions. As a result of the proposed amendments, sales should increase. Therefore, retailers should experience an increase in income from the increase in sales. Comment: One commenter asked the question: "What will the minimum starting Jackpot be?" Response: Currently, the minimum jackpot is four million dollars. However, this amount is subject to change should it become necessary to do so. Comment: One commenter stated: "In the beginning, we were led to believe that the money was going to the schools and it's not. These changes will only help the Texas Lottery make more money for itself." Response: The Commission disagrees with the comment that the changes will only benefit the Commission. The Commission anticipates players and retailers as well as the State of Texas to benefit. At the start of the Lottery all proceeds went to the General Fund. As a result of legislative changes, all proceeds now go to the Foundation School Fund. Comment: One commenter suggested that if a player gets 2 of 6 numbers, a free play should be given if the player buys a $5 ticket. Response: The Commission disagrees with the comment because free plays are still a prize expense and would have to be deducted from the total prize pool for that draw. Comment: One commenter suggested selling 3, 6, 9 month and yearly advance tickets at a discount. Response: The Commission disagrees with the comment. Offering this option would require the development of a subscription database. The Commission has researched this concept by reviewing other states' experience. It appears that it is cost prohibitive and would require additional staff without results to support it. Comment: One commenter indicated that it is obvious that the contractor is having an influence in this decision. Response: The Commission relies on its vendors for their expertise and knowledge. The Commission's vendors are required contractually to propose ideas to keep the Lottery games healthy. However, the Commission is unaware of undue influence by its vendors in connection with the Commission's decision to propose the amendments. Comment: One commenter suggested increasing profit by "increasing volume, have a sale!" Response: The Commission disagrees with the comment to the extent the comment is to "have a sale" on long term basis. The Commission would not be in a position to pay high jackpots since jackpots are sales driven. Occasionally, as a promotion, the Commission does offer 2 for 1 purchases or buy 5, get 1 free. Comment: One commenter suggested having scanners at Lotto locations for people to scan their own tickets to see if they are winners. Response: Industry technology has designed prototypes of such hardware, but it is expensive and would require additional efforts on the behalf of Lottery retailers also. Comment: One commenter suggested looking at other lotteries to see what works before increasing the odds. Response: The Commission monitors other lotteries to watch for trends. For example, the successful change Florida made to its Lotto game has been instructional for the proposed changes in Lotto Texas. Comment: One commenter indicated that the reason people stop playing the Lotto is that the TLC keeps changing the rules. Response: The Commission disagrees with the comment. Texas is the only state that has gone this long, from inception, without changing its Lotto matrix. As a result, Lotto Texas sales have declined and Texas is not experiencing the high jackpots it once did. Comment: One commenter stated: "What part of NO don't you understand?" Response: The Commission disagrees with the comment because the Commission believes the proposed amendments will increase sales and result in higher jackpots. Comment: One commenter suggests the Commission restore the original parameters, 20 annual payments and a 65% return. Response: The original parameters did not include a 65% prize payout. It has always been at 50%. The Commission disagrees with the comment because restoring the annual payments to 20 will not result in higher jackpots. Comment: One commenter indicated that one solution is to "get rid of Kiplin, the Lottery Commission needs some new blood." Response: The Commission disagrees with the comment because taking the suggested action will not result in higher jackpots. Comment: One commenter suggested cutting 5 balls, not adding 4, cutting the ball sets to four and machines to two. Response: The Commission disagrees with the comment because it would not result in higher jackpots and increased sales. Comment: One commenter wants to keep Lotto 6 of 50, pay $5 for 3 numbers and increase the prize from $4 to $5 Million. Instead of Texas Million, play a special 6 of 50 Lotto Friday night and sell $2 tickets, the prizes will be: 3 of 6 pays $50, 4 of 6 pays $1,000, 5 of 6 pays $10,000. Response: The Commission disagrees with the comment because player research indicates that players want higher jackpots. Comment: One commenter wants the Commission to make a deal with Texas Cable News Network to televise the drawings at 9:59 pm and have another show at 10:59 pm to announce if there was a winner. It is the Texas Lottery Commission's job to keep the interest up. Response: The Commission disagrees with the comment. Lottery drawings are filmed live and broadcast via satellite. It is the individual television station's choice to pick up the drawings and broadcast them. Comment: One commenter indicated that there are a certain number of people who gamble, and no more and the player base is saturated. Response: The Commission disagrees with the comment because Lottery research shows that players would play if the jackpots were higher. Comment: One commenter wants the Commission to do away with all the scratch offs and have one card only. Response: The comment is not relevant to the proposed amendments. However, players want more than one instant game available. Comment: One commenter indicated that "it is almost impossible to really win a lottery, unless the controller wants a winner. They choose when and where (and many times who)." Response: The Commission disagrees with the comment. Lottery drawings are random and a series of nearly 300 checkpoints are conducted each draw to ensure the security and integrity of the games. Comment: One commenter suggested reviving the Texas Lottery by reducing it to five numbers and let there be a winner one out of three. Response: The Commission disagrees with the comment because Cash 5 is the Commission's 5 digit online game. Comment: One commenter stated: "I would like to know if the total from all the games is about the same as just having the Lotto Texas and scratch off games." Response. The total sales from all games is not the same as the combined sales from Lotto Texas and instant games. Comment: One commenter suggested having 10 plays on a card. Response: The Commission will consider this suggestion in the future. Currently, there is not enough physical space on one Lotto Texas playslip for 10 different sets of numbers. Comment: One commenter suggested having machines in stores for people to scan their own tickets to see if they are winners, instead of having lines for the clerks. Response: The Commission will consider this suggestion in the future. While the Commission is aware that lottery vendors are working on such hardware, the technology is not currently available to the Commission. Comment: One commenter suggested trying a game show. Response: The Commission disagrees with the comment because the suggestion will not result in higher jackpots in Lotto Texas. Player research indicates players want higher jackpots. Comment: One commenter suggested that the 3 of 6 should pay out $5.00, 4 of 6 pay out in the thousands, and the 5 of 6 should pay out in the tens of thousands. Response: The Commission disagrees with the comment because funding the suggested prize levels would require taking money from the jackpot level. Player research indicates players want higher jackpots, not lower. Comment: One commenter indicated he/she doesn't "win when the Commission, school foundation and retailers make more money." Response: The proposed amendments increase the prize pool from 50% to 55%. Comment: One commenter suggested leaving Lotto alone and starting the jackpot at $2 or $3 million. Response: The Commission disagrees with the comment because player research indicates players want higher jackpots and the proposed amendments are intended, in part, to result in higher jackpots. The following are comments received during the comment period from persons who did not specify if they were for or against the proposed changes: Comment: Several commenters suggested changing the pay out over time to 15 or 20 years. Response: The Commission disagrees with comment because this change would not increase Lotto Texas sales. Comment: Some commenters want to raise the prize amounts for all numbers. Response: The proposed amendments include an increase in the direct prize category percentages which will provide for higher prizes at the 3 of 6, 4 of 6, 5 of 6 and 6 of 6 prize levels. Comment: One commenter wants to increase retailer compensation for more of an incentive. Response: The Commission believes that the proposed amendments will result in increased compensation to the retailers because as sales increased, the dollar amount based on the 5% commission will also increase. Comment: A few commenters want to have positive changes advertised in the Lottery. Response: The Commission is careful to avoid advertising that would unduly influence a person to participate in the Lottery. The Commission believes advertising positive changes, i.e., "change of life" advertisements, as a result of winning the Lottery could be considered undue influence. Comment: One commenter suggested having a weekly drawing of $1 million, tax-free and give away $52,000 per year. Response: The Lotto Texas game was intended to address players' request for high jackpots. This suggestion is not consistent with the purpose of Lotto Texas. The game designed to address players' request for a weekly $1 million draw is the Texas Million game. The Texas Million game offers a top prize of $1 million to meet player's requests. However, the Commission cannot offer a tax free prize because federal tax law requires that taxes be paid on all prizes $600 and above. Comment: Some commenters indicated that the television and radio stations do not announce the numbers. Response: Lotto Texas drawings are filmed live and broadcast via satellite for television stations to air. It is the choice of each individual station as to whether it will carry the drawings. The Commission cannot mandate to the stations to carry the drawings. Comment: One commenter asked the question: "Why not let the winners choose annuity or cash option at the time of claim?" Response: The Commission purchases its investments to fund the prize which is paid out over time the day after the drawing. It would not be financially prudent for the Commission to sell its investments shortly after the purchase. Further, whether the Commision afforded its players the flexibility to elect this option at the time the player claimed the prize would not increase Lotto Texas sales. Comment: Some commenters stated that there are too many games. Response: Each of the Lottery online games were designed to meet the requests of our players; Lotto Texas offers higher jackpots, Texas Million offers at top prize of $1 million with lower odds, Cash 5 offers higher prizes at lower levels and Pick 3 offers smaller prizes with daily drawings. Eliminating some of the games would not necessarily increase Lotto Texas sales. Comment: Some commenters suggested that draws should be once a week. Response: The Commision does not believe that reducing drawings to once a week would address player requests regarding higher jackpots. In fact, it would have the opposite effect. Comment: Some commenters indicated that players should get 2 picks for a $1. Response: Giving players 2 plays for $1 would increase the number of plays per game but not help to offer higher prizes or larger jackpots which is what player research indicates Lotto players want. Comment: A few commenters indicated that the amount the retailer receives should be capped at $200,000. Response: The Commission does not believe that capping the amount retailers receive as incentive is relevant to the proposed changes Comment: One commenter wants jackpots to be described in terms of so much money a month or a week so that people can relate it to the amount they have now. Response: The Commission does not believe characterizing jackpot amounts in such a way will have an impact on Lotto Texas sales. However, the Commision has produced point-of-sale materials in the past that show the breakdown of jackpot amounts; such as, "$4 million is not Chicken Feed", and "$4 million is more than $13,000 a month". Comment: Several commenters want to increase the 3, 4 and 5 of 6 percentage of the prizes. Comment: The proposed matrix has a higher prize payout of 55% which will allow for higher prizes at the 3 of 6, 4 of 6, 5 of 6 and 6 of 6 prize levels. Comment: A few commenters want to have more winners of smaller $2 million jackpots. Response: The Commission disagrees with the comment because current Lottery research indicates that 81% of people polled said they want multimillion dollar jackpots. Comment: One commenter indicated that the Commission should pay the tax on the jackpot. Response: The Commission disagrees with the comment because the Commission's operating expenses are approximately 7% of total sales and the Commission is not in a position, financially, to pay taxes on jackpot prizes. Comment: One commenter suggested raising the pay out on 3 of 6 to $10. Response: The Commission does not agree with the comment to raise the 3 of 6 to $10 because eof the cost involved. However, the Commision is responding to player requests regarding an increase in the payout amount at the 3 of 6 level. The proposed amendments reflect an increase from $3 to $5 for the 3 of 6 prize. Comment: Several commenters suggested having smaller pay outs with more chances to win. Response: The Commission disagrees with the comment because decreasing the percentage of payout results smaller prizes to win, without increasing the player's chance to win. Comment: A few commenters suggested increasing the percentage of pay out on the cash option. Response: The Commission disagrees with comment because the cash value option is based on the sales for that particular draw. The cash value option is approximatey 50% of the advertised Lotto jackpot. Comment: One commenter suggested having a mini-Powerball. Response: The proposed amendments are intended to make the Lotto Texas game healthy. Having a mini-Powerball will not help in improving Lotto Texas game. Comment: One commenter wants the odds lowered in order to make everyone in Texas a millionaire. Response: The Commission disagrees with the comment because player research indicates that players want higher jackpots. Comment: One commenter wants to increase the starting pot to $5 million and charge $1.50 a ticket. Response: The Commission disagrees with the comment because increasing the starting jackpot to $5 million would require an increase in sales to support a higher starting jackpot. Increasing the price of a ticket to $1.50 would not compensate for increased jackpot amount. At the rate of current sales, the starting jackpot may have to be reduced from $4 million to $3 million or lower. Comment: Some commenters suggested improving existing games. Response: The proposed amendments are designed to improve the existing Lotto Texas game. Comment: A few commenters suggested decreasing overhead. Response: Whether the Commission decreases its operating expenses is irrelevant to the reason the Commission proposed amendments to the Lotto Texas game. The Commision, by proposing the amendments, is attempting to stop declining Lotto Texas sales. Comment: A few commenters suggested improving the image of the Commission. Response: The integrity, security, and honesty of the Lottery are the Commission's primary focus. At no time, has the integrity, security, and honesty of the Lottery been questioned. However, the Commission reviews player research routinely to address perceived image issues, if the players raise them. Comment: Some commenters suggested dropping some games. Response: The Commission disagrees with the comment because current Lottery research shows that 81% of people polled said they want multimillion dollar jackpots. Dropping some Lottery games will not address these players' requests. Additionally, each game appeals to a different category of players. Comment: Some commenters stated that local television does not show the drawings and that the Commission should advertise more. Response: The comment is irrelevant to the proposed amendments. However, Lotto Texas drawings are filmed live and broadcast via satellite for television stations to air. It is the choice of each individual station to decide to broadcast the drawings. The Commission can not mandate a station broadcast the drawings. Comment: Some commenters want to join Powerball and leave Lotto Texas alone. Response: The Commission disagrees with the comment because the Commission believes it should improve its Lotto Texas game regardless of whether it should participate in another game. Comment: Some commenters indicated the pay out on 5 of 6 numbers should be substantially higher. Response: The proposed amendments are designed, in part, to increase the 5 of 6 prize level from $1,500 to $2,500. Comments: A few commenters want to reduce the jackpot and increase the odds of winning. Response: The Commission disagrees with the comment because current Lottery research shows that 81% of people polled said they want multimillion dollar jackpots. Comment: One commenter wants to have 40 $100,000 winners instead of 1 $4 million winner. Response: The Commission disagrees with the comment because current Lottery research shows that 81% of people polled said they want multimillion dollar jackpots. Comment: One commenter wants people to have a real chance at being a winner. Response: The Commission disagrees with the comment to the extent the comment is suggesting that the proposed amendments will not give people a "real chance at being a winner". The proposed matrix does not indicate this statement to be correct. Further, as of April 5, there has been 398 Lotto jackpot winners out of 778 draws. Along with Lotto Texas, the Commission offers other games with various odds of winning a prize at different levels. Current Lottery research shows that 81% of people polled said they want multimillion dollar jackpots. Comment: A few commenters suggested adding a bonus number. Response: The Commission disagrees with the comment because past proposed amendments to Lotto Texas featured a bonus and comments from players were not in favor of this type of game. Comment: One commenter suggested the following: Reduce $4 million to: 1 million 1st prize $500,000 x 4 2nd prize, $100,000 x 10 3rd prize, for a total of 15 winners. Response: The Commission disagrees with the comment because current Lottery research shows that 81% of people polled said they want multimillion dollar jackpots. Comment: One commenter suggested choosing 8 numbers instead of 6 to allow more chances to win. Response: The Commission disagrees with the comment because having 8 numbers would not increase the chances to win. Comment: One commenter wants to go back to live drawings showing one ball at a time. Response: The comment is irrelevant to the proposed amendments. However, Lotto Texas drawings are filmed live and broadcast via satellite for television stations to air. It is the choice of each individual station to decide to broadcast the drawings. The Commission cannot mandate a station broadcast the drawings. Comment: One commenter wants to increase 3 of 6 to $50 payout. Response: The Commission disagrees with the comment because increasing the prize level to this amount would have a significant impact on other prize levels in the game. Comment: Some commenters want to have the ability to play Lotto Texas over the Internet. Response: The Commission is prohibited under current law from selling tickets via the Internet. Comment: One commenter suggested drawing 4 sets of numbers for 4 $1 million winners. Response: The Commission disagrees with the comment because current Lottery research shows that 81% of people polled said they want multimillion dollar jackpots. The Commission offers a game which offers $1 million prizes at the top level, Texas Million. Comment: Several comments suggested having advertising that features more winners. Response: The Commission disagrees with the comment because it does not respond to player requests for higher jackpots. However, the Commission produces a player newsletter Winning showing recent winners and is distributed through licensed Lottery retailers. Winner information can also be found on the Commission's website at www.txlottery.org Comment: Several commenters want to give the winners more money. Response: The proposed amendments are intended to give winners more money by increasing the prize payout from 50% to 55% which results in increasing all four prizes levels; 3 of 6, 4 of 6, 5 of 6, and 6 of 6. Comment: Several commenters want to drop the amount of numbers from 50 to 49 to allow more winners. Response: The Commission does not agree with the comment because it would not result higher jackpots which are what player research shows players want. Comment: Some commenters suggested giving incentives for playing, such as buy 5 get 1 free. Response: The Commission disagrees with the comment because the suggestion is irrelevant to the purpose of the proposed amendments. However, the Commission has offered such promotions through coupon distribution either to invite trial or cross promote two games. Comment: Some commenters want to return to the original payout percentage. Response: The Commission disagrees with the comment because the current prize payout for Lotto Texas is 50% and has not changed since the introduction of the game. The proposed amendments increase the prize payout to 55%. Comment: A few commenters suggested reducing the number of scratch off tickets to save money because they are expensive to print. Response: The Commission disagrees with the comment because reducing the number of scratch games has no relevance to declining Lotto Texas sales and the proposed amendments. However, the average number of scratch games that retailers carry is 20. Player research indicates that players like the freshness of new games and new ways to win. Comment: One commenter indicated that when they called the 800# and asked questions concerning the rules, the personnel at the Commission got very defensive. Response: The Commission appreciates the comment. This should not be the attitude of Commission personnel. Comment: One commenter indicated that the Lottery is a voluntary tax. If the Lottery pays out more of the prize money and decreases the "tax", more people would play.
Comment: One commenter suggested having a once a month Super Jackpot of $15 million to $20 million and having the other weekly drawings of 5 winners of $600,000 or 8 winners of $500,000. Response: The Commission disagrees with the comment because current Lottery research shows that 81% of people polled said they want multimillion dollar jackpots. Comment: One commenter indicated making Lotto picks bought during a week be good for all the following week and have 5 draws per week. Response: The Commission disagrees with the comment because this suggestion would not help increase sales or increase the size of the jackpot. Comment: One commenter suggested having a set jackpot of $20 million and selling the tickets until the Commission has enough to pay and then have the drawing. Response: The Commission disagrees with the comment because this suggested type of game would not result in higher jackpots and player research indicates players want higher jackpots. Comment: One commenter stated that the media doesn't tell what the jackpot amount is for the next draw. Response: The Commission disagrees with the comment because the Commission produces radio jackpot alerts and 10 second metro reads that advertise the jackpot amounts. Many of the newspapers publish the drawing results along with the estimated jackpot for the next draw. Some television commercials have been tagged with the jackpot amount. Additionally, eighty outdoor billboards showing the jackpot amount are placed throughout the state. Comment: One commenter suggested having a big wheel drawing on TV or some location and allows people to buy chances to win smaller prizes. Response: The Commission disagrees with the comment because television game shows are very expensive to produce and funding has to be available for the prizes. Further, such a suggestion would not increase Lotto Texas sales or create higher jackpots. Comment: A few commenters stated that the Commission only allows winners from large cities. Response: The Commission disagrees with the comment because the number of winners in any given area is relative to the population of players participating in the games from that area. The drawings for all Texas Lottery games are random and the Commission Security Division goes through a checklist of nearly 300 steps for each drawing to ensure the integrity, security and fairness of the games is maintained. Also, winners come from all sizes of cities. Comment: One commenter suggested that if the Federal Government would only take 14%, the State could keep the other 86%. Response: The Commission disagrees with the comment the Commission cannot change federal income tax law. Further, the comment is not relevant to the proposed amendments. Comment: One commenter stated that "GTECH is sucking the State dry at roughly 33% each and every drawing." Response: The Commission disagrees with the comment because it is not a true statement. GTECH is currently paid 3.361% of sales. Comment: One commenter stated: "When I first started playing, I won a little and now I still play a lot and I don't win at all." Response: The Commission disagrees with the comment if the comment is intended to suggest that the odds of winning have decreased. The odds of winning on the current Lotto game have not changed since the game was introduced. Comment: One commenter indicated that when "advertising the odds of winning, it is certainly deceptive advertising, if not an out and out lie to call a ticket that sells for a dollar that is redeemed for a dollar, a winner." Response: The Commission disagrees with the comment because there is not a one dollar prize amount in the Lotto Texas game. The least amount a person can win is by matching 3 of 6 numbers for a prize of $3. Comment: A few commenters indicated that the wording in the proposed amendment is inaccurate because the proposal indicates that the changes will increase odds, when the odds will be decreased. Response: The Commission disagrees with the comment because the odds of winning are increased when the odds of winning increase from approximately 1 in 15 million to 1 in 25 million. Comment: One commenter stated: "We were "promised" higher jackpots when you changed the pay out from 20 to 25 years." Response: The Commission disagrees with the comment because the payout over time was changed to 25 years but not the percentage of prize payout. Comment: One commenter stated: "There are more winners in east Texas than west Texas." Response: The Commission disagrees with the comment because the number of winners in any given area is relative to the population of players participating in the games from that area. The drawings for all Texas Lottery games are random and the Commission Security Division goes through a checklist of nearly 300 steps for each drawing to ensure the integrity, security and fairness of the games is maintained. Comment: One commenter suggested showing which winners are quick picks and which are not because people don't feel the Lottery is run honestly. Response: The Commission disagrees with the comment to the extent comment indicates that the Lottery isn't run honestly. Lottery information indicates that the distribution of players picking their own numbers or playing Quick Pick is about 50/50. The selection of Quick Pick continues to be the option of the player. Comment: One commenter indicated that the Commission is not making as much money because of all of the illegal gambling available to the public. Response: The Commission agrees that other forms of gaming, whether legal or illegal, may have an impact on Lottery sales; however, the Commission disagrees with the comment to the extent the comment is intended to suggest that other forms of gambling are the cause for the decline in Lotto Texas sales. If comment is correct, the Commission would be experiencing a decline in sales for all its games and it is not. Comment: One commenter suggested modeling Lotto Texas after the successful German Lottery. Response: The Commission is not familiar with Germany's Lotto game. However, from a review of the information contained in the comment it appears that the German Lotto includes a bonus ball and increased number of prize categories. The Commission proposed amendments to the Lotto Texas rule which included a bonus ball and increased number of categories. Comments received concerning the use of a bonus ball and increase in the number of categories were negative. Additionally, recent player research indicates that the majority of players want multimillion dollar jackpots which is not the case with the German Lottery. Also, like the German Lottery, the Commission produces a player newsletter. Comment: One commenter suggested drawing 2 sets of numbers when the Lotto goes over 10 million. If there is only one winner, he/she gets all the money. If there are more winners, it is split evenly. People will buy more tickets because their chances of winning increase. Response: The Commission disagrees with the comment because jackpots are already split when there is more than one winner. Also, drawing two sets of numbers in the manner suggested will not result in higher jackpots. Comment: One commenter suggested capping the prize at 10 million, have a second drawing for the excess instead of letting it roll to a new jackpot. Response: The Commission disagrees with the comment because player research indicates that players want higher jackpots. Comment: One commenter suggested reminding the public what 4 million dollars is. Response: The Commission has conducted advertising campaigns to carry this message. Comment: One commenter indicated that the average person has no idea how much money goes into education. Response: The Commission produces a pamphlet showing the breakdown, by percent, of where the money goes. However, the revenue generated by the Lottery for the Foundation School Fund is a fraction of the education budget. It is not the Commission's role to inform the public about the education budget. Comment: One commenter indicated that if the economy were better, people would play more. Response: The Commission disagrees with the comment because the economy does not appear to be better or worse than it was in past years. The Commission believes that players want higher jackpots and will not play at lower jackpot levels as much as they once did. Comment: One commenter suggested having only one drawing per week because most people want a chance at bigger Jackpots. Response: The Commission disagrees with the comment because having one drawing per week will not result in higher jackpot levels. Comment: One commenter indicated that in east Texas it is easy to drive to Louisiana for Powerball tickets. If the Texas Lotto could mirror the Powerball, players might buy more tickets here. Response: The proposed amendments do not mirror Powerball but are intended to result in higher jackpots. Past proposed Lotto Texas amendments mirrored to some extent Powerball and player comments were opposed to the proposed changes. Comment: One commenter indicated that five numbers in Powerball pays $100,000. Response: The Commission does not understand the significance of the comment except to the extent the comment is suggesting increasing the 5 of 6 prize amount in the Lotto Texas game. The proposed amendments do increase the prize level for the 5 of 6 tier; however, not to this suggested amount. If the Commission accepted the suggestion, the money would have to come from another prize level, such as the 6 of 6 level which would result in lower jackpot levels. Player research indicates players want higher jackpots, not lower. Comment: One commenter suggested that the Lottery should not be so secretive. People in big stores who purchase tickets do not win. The Lottery is run by computers and the people know immediately the exact location and time the ticket was purchased. The winners should not be protected by secrecy, they should be glad they won. Response: The Commission is subject to the Open Records Act. Certain information about a winner is public information. However, certain information, such as the winner's home address and telephone number, is exempt from disclosure. Additionally, winners have the option to participate in publicity at the time the winner claims the prize. Comment: One commenter suggested reducing the prize of 6 of 6 numbers to $1 million, increasing the amount of funds in reserve for 5 of 6 numbers to $1.5 million (higher payoffs for those who win), increasing the amount of funds in the reserve for 4 of 6 numbers to $500,000 (higher payoffs for those who win), and increasing the prize amount for 3 of 6 numbers to $4. The cost of implementing this change will not be as great. For most players, a million dollar prize is enough. Response: The Commission disagrees with the comment. Player research indicates that 81% of people polled said they want multimillion dollar jackpots. Comment: One commenter asked the questions: "Does Cash 5 and Texas Million take away from Lotto sales? Could it be that adding new on-line games has detracted from the primary game?" Response: The Commission expects some cannibalization with new game introduction. Such cannibalization is considered at the time a new game is proposed. The Commission relies on player research which indicates that each of the on-line games appeals to a different category of players. Comment: One commenter suggested the following: Leave the Jackpots and numbers the same, instead of giving $3 for 3 numbers, give a free ticket. Raise the amount of money for 4 numbers to $5000 and raise the amount of money for 5 numbers to $25,000 or as high as possible. Response: The Commission disagrees with the comment because it would have an adverse impact on the jackpot prize amount, so it could not be left the same. Comment: One commenter indicated that the New York Lottery just decreased the number of balls to increase sales. Response: The Commission disagrees with the comment to the extent the comment intends to indicate that decreasing the number of balls will increase sales. Decreasing the number of balls should result in lower jackpot levels. Player research indicates that players want higher jackpots. Comment: One commenter indicated that the "Lotto was doing just fine until some anti-lottery commission members were elected to the board. The advertising for the Lottery decreased (I can't remember the last time I saw a TV commercial), the odds of winning were reduced, as a result people started playing." Response: The Commission disagrees with the comment because Lotto Texas sales have been declining for some time and player research indicates players want higher jackpots. The Commission's advertisement is at approximately the same level it has been in the past. Comment: One commenter indicated that the Commission's greatest adversary is the "Law of Diminishing Utility". Response: The Commission does not understand the comment. Comment: One commenter indicated that if the Commission reduced the initial jackpot, the marginal players will drop out of the market until the jackpot gets bigger. Response: The Commission proposed the amendments to increase jackpots and, as a result, avoid having to reduce the minimum jackpot level. Comment: One commenter stated: I don't believe the money should only support schools. I'd prefer for some money to go to animal rights groups, environment, etc. On scratch-offs, you should be able to redeem tickets for items (t-shirts, key chains, more tickets) to help the environment and prevent tickets from being thrown on the ground." Response: The Commission does not decide how lottery revenue is used. With regard to possible prizes for instant tickets, players indicated they want money. Comment: One commenter suggested letting people from other states buy our lottery that would increase our pots and only letting them choose the 25 year payment option and the interest is the Commission's to use. Response: The Commission disagrees with the comment because people from other states can buy Texas Lottery tickets now. However, the interest in the 25 year payment option makes up the total jackpot amount won over time. There is no interest gained by the Lottery. Comment: One commenter wants to combine his own picks with random picks. For example, combine his birthday (11-3) with 4 random numbers. Response: The current software technology does not make such a suggestion possible. The following is a summery of the comments received during the comment period from persons who indicated they were in favor of the proposed amendments but offered additional comments: Comment: Many commenters want to see the 3, 4, and 5 of 6 levels pay higher. Response: The proposed amendments are intended to achieve higher prize levels. Comment: Many commenters indicated they agree with the matrix change. Response: The Commission proposed the amendments to respond to player requesters such as these comments. Comment: Many commenters stated they want bigger jackpots. Response: The proposed amendments are intended to result in higher jackpots. Comment: Some commenter indicated that the odds are impossible anyway so why not have bigger jackpots. Response: The proposed amendments are intended to result in higher jackpots. Comment: One commenter suggested paying for pairs in Pick 3 to increase its popularity. Response: The proposed amendments only relate to Lotto Texas. Paying pairs in Pick 3 would change the payout for other combinations. Comment: One commenter indicated that notification of the numbers drawn on the website is not timely. Response: The Commission will raise this its issue with the appropriate staff. Comment: One commenter indicated that bigger jackpots will attract out of state players. Response: The Commission proposed the amendments to respond, in part, to player requests for higher jackpots. Comment: One commenter suggested increasing the number of advance draws from 10 weeks. Response: The Commission will consider this suggestion in the future. Comment: Several commenters indicated that "it's about time" the changes were made to the game. Response: The Commission proposed the amendments to increase sales and to respond to player requests for higher jackpots. Comment: One commenter indicated that "it keeps me going to win a little every now and then." Response: The proposed amendments increase the guaranteed 3 of 6 payout from $3.00 to $5.00. Comment: One commenter suggested that with the increased number of balls, the Commission should pay $1.00 for 2 of 6 numbers. Response: The Commission disagrees with the comment because paying at this level would affect the other prize levels and would result in lower jackpot levels than what is expected as a result of the proposed changes. Player research indicates that players want higher jackpots.
Continued |
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The Lotto Report |
