Update to Aug 14, 2010 posting that can be found below this posting
- Opinions Are Those of Dawn Nettles -
lottoreport.com, lottotexas.com and megaplier.org

On Friday, August 13, the Dallas Morning News ran a story regarding two Lotto Texas jackpot wins - in just 10 days - where the state was short to fund by $3.4 million.

Lotterypost - Todd Northrop - took the copyrighted Dallas Morning News story and posted it on his web site but he changed it. Obviously, he didn't want his visitors to read what had actually been written about me - rather, he wanted to instill his own opinions.

I don't really know what his motives are - I have my suspicions but at this point, that's about all it is - suspicions.

I do intend to pursue this issue. It will take time to fully investigate but I'm on it. Anyway ...

On Aug 17, I saw that Todd had re-written the story, removed the Dallas Morning News credit line but kept the headline and kept quotes that he obviously did not obtain. I can say this because there's a quote from me and I did not speak to him to give him the quote!

Additionally, Todd added this statement ... "Although Nettles tries to make a case that the Lotto Texas jackpot calculation takes money away from revenue already earned, her conclusion is seemingly unsupported by revenue figures."

Well, it doesn't take an idiot to figure out that if sales don't support a win, a lottery would have to take funds from somewhere to pay the win. Needless to say, this reduces profits. The Texas Lottery will tell you that it is their duty to MAKE money for the state.

If Todd (lotterypost) had posted the stories printed in the Houston Chronicle and San Antonio Express News from the week before, then you'd have read where members of the Texas Legislature are upset about this. As they should be.

Lotto Texas sales are not down because of Mega Millions or Powerball. Sales are down because the Texas Lottery would not give players the game they wanted to play - pick 6 of 50. Players quit and/or reduced their spending back in July 2000 - the first time the TLC changed the Lotto Texas game.

Because of Todd's additional comment and because I don't want players misled, I'm going to show you exactly how the dollars are suppose to be spent as per the rule. Hopefully, everyone will be able to understand - BUT- you MUST understand ONE thing first. And that is ...

Each game is a "separate" business. Each game has its own earnings
and it has its own "budget." This is true for Pick3, Daily4, Cash5,
Texas 2 Step, Lotto Texas, Mega Millions, Megaplier, Powerball
and each and every individual scratch ticket. There is NOT
suppose to be any "co-mingling" of funds between the games.
Remember, each game is a "separate business" and has a "budget."

Now that you understand this, let me show you the Lotto Texas "budget,"
and exactly how the money is earmarked.

Lotto Texas Budget For Aug 11, 2010 - $6 Million Lotto Texas Win 3 Consecutive Draws - sold a total of $4,800,859 for the 3 draws. 50% goes to the state - 50% goes in the prize pool to pay ALL winners.
Gross Sales $4,800,859 - 100% of sales -
Players Share "Prize Pool"	$2,400,429.50		States Share Where The $$ Go	$2,400,429.50
Jackpot Winners Share From Sales (.4047%)	$1,942,908		38% of total sales goes to schools	$1,824,326
Low Tier Prizes Share (.0953%)	$457,521		5% of total sales goes to retailers	$240,043
Please notice that the percentages do equal 100%.			7% of total sales goes to TLC	$336,060
Now, here's the actual expenses incurred for these 3 draws
Players Share from Sales 50% - Budget	$2,400,429.50		States Share From Sales 50% - Budget	$2,400,429.50
Jackpot Winner Receives	$4,129,116		Over budget - Paid to winners	<$2,173,066.50>
Low Tier Prizes Won	$444,380		Balance of sales for TLC to pay commitments	$227,363
Total paid out in prizes	$4,573,496.50		38% of total sales goes to schools	$1,824,327
Over Budget	<$2,173,066.50>		5% of total sales goes to retailers	$240,043
			7% of total sales goes to TLC	$336,060
			Negative Balance From Roll (3 draws)	<$2,173,067>

Now lets look at the July 31, 2010 $21 Million Win

Lotto Texas Budget For July 31, 2010 $21 Million Lotto Texas Win 18 Consecutive Draws - sold a total of $32,040,916 for the 18 draws - 100% 50% goes to the state - 50% goes in the prize pool to pay all winners.
Gross Sales $32,040,916 - 100%
Players Share "Prize Pool" 50%	$16,020,458		States Share Where the $$ Go 50%	$16,020,458
Jackpot Winners Share From Sales (.4047%)	$12,966,959		38% of total sales goes to schools	$12,175,548
Low Tier Prizes Share (.0953%)	$3,053,499		5% of total sales goes to retailers	$1,602,046
-	-		7% of total sales goes to TLC	$2,242,864
Actual Expenses Incurred For These 18 Draws
Players Share from Sales - Budget	$16,020,458		States Share From Sales - Budget	$16,020,458
Jackpot Winner Receives	$14,155,747		Over budget - Paid to winners	<$1,208,683>
Low Tier Prizes Won	$3,073,394		Balance of sales for TLC to pay commitments	$14,811,775
Total paid out in prizes	$17,229,141		38% of total sales goes to schools	$12,175,548
Over Budget	<$1,208,683>		5% of total sales goes to retailers	$1,602,046
			7% of total sales goes to TLC	$2,242,864
			Negative Balance From Roll	<$1,208,683>

Lotto Texas was won again on Aug 28, 2010 and the TLC is
short to fund the winner by <$2,279,721>.
Here is the "budget" (monies earmarked) and again I ask you,
who will NOT receive their share from sales?

Lotto Texas Budget For Aug 28, 2010 An Advertised $8 Million Lotto Texas Jackpot 5 Consecutive Draws - sold a total of $8,278,615 for the 5 draws 50% goes to the state - 50% goes in the prize pool to pay all winners.
Gross Sales: $8,278,615 - 100%
Players Share "Prize Pool"	$4,139,307.50		States Share Where the $$ Go	$4,139,307.50
Jackpot Winners Share From Sales (.4047%)	$3,350,355		38% from total sales goes to schools	$3,145,873
Low Tier Prizes Share (.0953%)	$788,952		5% from total sales goes to retailers	$413,930
-	-		7% from total sales goes to TLC	$579,503
Actual Expenses Incurred During These 5 Draws
Players Share from Sales - Budget	$4,139,307.50		States Share From Sales - Budget	$4,139,307.50
Jackpot Winner Receives	$5,630,076		Over budget - Paid to winners	<$2,280,726>
Low Tier Prizes Won	$789,957		Balance of sales for TLC to pay commitments	$1,858,581
Total paid out in prizes	$6,420,033		38% from total sales goes to schools	$3,145,873
Over Budget	<$2,280,726>		5% from total sales goes to retailers	$413,930
			7% from total sales goes to TLC	$579,503
			Negative Balance From Roll	<$2,280,726>
Which obligation will not be met from Lotto Texas sales? Are they taking "profits" from another game to pay these expenses? As per the rules, they are not suppose to. FYI - The only games with "excess funds" is Megaplier, Pick3 and Daily4. These games are not returning 50% of sales to players.

Contrary to what you may read at lotterypost concerning the plentiful monies - the TLC is suppose to live within its budget. They have expenses and obligations from total sales for each game. The state can not afford these losses. But more importantly, there should never be a "loss."

I can assure you, successful businesses do not ROB PETER TO PAY PAUL. The TLC is taking PROFITS that the state is counting on and using it in other areas. The state NEVER thinks it has enough money - Let me ask you a question - do you ever have enough money???? Are you satisfied with what you have? Do you knowingly, purposely and graciously OVERPAY for things you buy?

While lottery players may LOVE being overpaid by the state, it is not right nor is it good business. There is nothing wrong with the state seeing 50% of sales and they SHOULD see their share of sales. It is my humble opinion that if they are not returning at least 50% of sales for each game, then they are srewing the people. All they have to do is pay "pari-mutuel" prizes which means - divide a set percentage of sales for each prize level and pay the winners accordingly.

Right now, Megaplier, Pick3 and Daily 4 are the only games not returning 50% of sales to the players. And I feel strongly that this is wrong. I suppose those few at lotterypost think its OK to take excess monies from Pick3 to pay Lotto Texas winners.

Between 1992 and 2006 (I could be wrong on the end date) - Lotto Texas players did not see 50% or 55% of sales like the TLC led you to believe. I fought this deception and was finally successful - they no no longer hold 2% in reserve for Lotto Texas.

For anyone who may question this - may I suggest that you go to the rules (1992, 1996, 2000 and maybe 2003 Lotto Texas rules) and add up the allocations for the 3 of 6, 4 of 6, 5 of 6 and 6 of 6 and you'll find that they equal 98% NOT 100%. Just in case anyone needs a refresher, read the Nov 8, 2001 transcript.

The reason players didn't see their "quoted" share of sales is because the TLC would withhold 2% from the players share of sales just in case it was needed to fund the $3 and $5 guaranteed prizes. At one point, they had so much in reserve that the legislature made them transfer funds into the General Revenue fund.

Having said this - let me clarify one thing for the record. Because the TLC was "guaranteeing" jackpots, they were short to fund many wins by over $70 million dollars. They used the 2% (reserve money) for those wins - again - the TLC did NOT have to do this because the rule at that time stated it was a "jackpot based on sales" meaning a winner was only due the amount of money that was set aside (allocated) for his win. But I suppose one could say that they had to "honor" the amount advertised.

After changes were made allowing the TLC to guarantee the advertised amount, they overpaid winners by another $30 million. All in all, the TLC overpaid Lotto Texas jackpot winners by $100 million before 2006.

I was present when members of the House Licensing and Administration learned of this and I can tell you, they were sick. I have a lot of information about these overpayments posted on my website.

FYI - The TLC just changed the Mega Millions rule. In case you didn't know it, Mega Millions jackpots will no longer be "guaranteed" - the winner will receive his percentage of sales and at that, he won't receive it all because they are "rounding down" to even millions. This usually leaves hundreds of thousands of dollars in the lottery's bank account!

Why Todd - who is supposedly a private lottery playing citizen who maintains a very elaborate, successful lottery website - would allow his visitors to be led astray regarding TEXAS tax-payer money is beyond me. His statement, "although Nettles tries to make a case that the Lotto Texas jackpot calculation takes money away from revenue already earned, her conclusion is seemingly unsupported by revenue figures" shows his ignorance. The Texas Lottery is here to make money, not foolishly throw away profits from other games. And if the revenue is coming from their operating budget, then they clearly have too much money and can afford to reduce their allocation from sales - give more to the schools.

It is also beyond me that Todd (lotterypost) offers links to purchase lottery tickets on line for $2 each when he knows full well that should you win and the lottery finds out how you purchased your ticket and that you paid $2 for it, then they won't pay you your prize. Your prize money will go into the unclaimed prize fund!

Why would someone who is a "fellow player" put you at risk of not collecting your winnings?

In case you didn't know this, it was alleged by the NJ Consumer Affairs Division that Todd had violated the NJ Consumer Fraud Act. I believe he agreed to pay $35K but did not admit guilt. Complete details can be obtained by reading this. (pdf) This is an OFFICIAL document that was filed on June 23, 2004 in New Jersey.

FYI - The link to purchase online lottery tickets at lotterypost.com also allows you to purchase Texas Mega Millions tickets online with megaplier - but the costs would be $4 per ticket!

I wonder, how much money does Todd make from the sale of online, illegally purchased lottery tickets? Did the NJ AG not make it clear to him that he could not do this when they went after him in 2004? Of course, the link to purchase US lottery tickets is registered to someone overseas. Maybe this makes it legal.

It is also beyond me that Todd Northrop purchased "megaplier.com" on Oct 16, 2003 (late night) or Oct 17, 2003 (early morning) which was the very day the TLC signed the agreement to join Mega Millions and offer Megaplier. How on earth did Todd Northrop - a private, lottery playing citizen from New Jersey - have the insight to buy this domain name before the Texas Lottery ever made it public?

Equally important, why is the TLC after my megaplier.org domain name and not after Todd's megaplier.com name? I bought megaplier.org on March 25, 2004 after I realized the TLC did not want it because they had not purchased it nor had they purchased megaplier.net. Commissioner Clowe instructed staff to purchase "whatever domain names" the TLC needed for Mega Millions in Sept or Oct 2003. Yet they didn't buy the names - a clear indication to me that they didn't want them - but now they do - not Todd's - just mine.

When I discovered the name "meagplier" was already in use by Todd Northrop prior to the TLC's filing for a mark on the name - according to the paperwork I have from the US Trademark Office - I bought it to show profit loss on the game - I honestly believed the TLC had no interest in the domain name. Now, 6 years later, the TLC is trying to take it away from me claiming I bought it in "bad faith" and am making a profit from the name. Not so folks!

The truth is, they don't want me giving ya'll public financial data on megaplier and are trying to get it off the net. Enough of this - I didn't mean to get carried away.

I'll say one thing about Mr. Northrop, he sure is FAST. Did you know he can post drawing results from 44 state lotteries in a matter of minutes. Gawd, it takes me 2 to 5 minutes to post TX games and I'm usually the first one up! While he denies having any connection to any state lottery, one sure has to wonder about this since he can post so many drawing results in such a short length of time. Shoot, how does he get the info so fast?

Not only does he pull off this miracle, but he displays all of Texas' games logo's on his drawing results page. WOW - The Texas Lottery doesn't allow anyone to do this. But they do at lotterypost.com. Why is this?

I think I have all of Todds emails to me and someday, for grins, I'll share them with you. He hasn't liked me from day one and it is very obvious. Maybe this is why the TLC allows him to show their copyrighted logo's!

One more thing - for those of you who have written me with regards to the negative postings at lotterypost about me, please understand, I can not control what is written about me. It appears lotterypost is the ONLY media where you will read negative things about me or my work. But, for those of you who have asked that I stand up and defend myself, well, here it is! I realize he won't let you post a defense of me so this is the best I can do.

I'm not trying to start a cyber war - I just want ya'll to be aware that the advice you may get at lotterypost may not be the best advice nor the most factual. Especially when it comes to taxpayer MONEY and the altering of copyrighted stories. Now I can only wonder how many other stories he has "altered."

Related Links For Tracking Lotto Texas Money
- Pages Always Current -
Should you win Lotto Texas, see exactly how much you have won. Click here
Ticket sales for each Lotto Texas draw since 1992, Click here
See a complete financial breakdown by "roll" and
every draw in the roll until there is a winner. Click here.

Here is the copyrighted story as it actually appeared in the Dallas Morning News ...
You will see what lotterypost.com changed at will ... it's clearly marked ..
Ask yourself, why would lotterypost.com change this paragraph about me (Nettles)?

2 quick Lotto Texas winners put state in bind

12:00 AM CDT on Friday, August 13, 2010
By CHRISTY HOPPE / The Dallas Morning News
choppe@dallasnews.com

Click here to see the story as it appeared in Dallas Morning News

AUSTIN – The luck of lottery winners is picking up. For the state, not so much: It has taken a $3.4 million hit in just the past 10 days.

Since July 31, someone has correctly picked the six Lotto Texas numbers twice, but the state sold an insufficient number of tickets to fully cover the advertised prize.

Bobby Heith, a spokesman for the Texas Lottery Commission, said the state account holding lottery earnings will cover the winning tickets. Overall, it has been a good year, with Lotto Texas proceeds up 33 percent over the same period last year, he said.

In fiscal 2009, all lottery ticket sales garnered $3.7 billion – $201 million coming from Lotto Texas.

Lottery expert Dawn Nettles, who operates the lotto report.com website, said dipping into the state fund means money is going out instead of coming in for Lotto Texas.

"That's like saying we're getting paid $1,000 a month and spending $2,000," she said.

Nettles has been a strong proponent of basing a winner's take on the amount of ticket sales.

But Lottery Commission members have decided, as a way to generate interest and fuel sales, that each new Lotto Texas game should begin at $4 million and grow in increments of at least $1 million per drawing, even if ticket sales don't necessarily cover the prizes.

"Lotto Texas has a very, very loyal following," Heith said. "We want to provide them with the game they want. We design games, all of them, to generate revenue for the state of Texas to support education."

Supporting education doesn't mean taking money away from revenue already earned, Nettles said.

"The state needs that money, and in this case the state is being shortchanged," she said. "They should be operating within their budget. They need to pay a winner based on what sales are."

On July 31, the winning ticket was advertised at $21 million, leaving the state with a $1.2 million prize deficit. On Wednesday night, a winning $6 million ticket was drawn, leaving the state with $2.2 million to make up.

The Lottery Commission used to operate a reserve account to make up such differences. That was depleted in May 2009 and wasn't replenished. The two most recent winning tickets are the first for which the general lottery fund is making up the deficit between sales and winnings.

The Lotto Report
P. O. Box 495033
Garland, Texas 75049-5033
(972) 686-0660