Note: The dates shown on the messages are the dates I'm posting
them - they do NOT necessarily reflect the date I received them.

From Dawn Nettles
Publisher, The Lotto Report
Subject: Boycotting the TLC

What you'll read below and on the next page is a very small sampling of the email I've been receiving since the TLC changed the Cash 5 game. I am also receiving phone calls asking for recommendations on how to be heard by ANYBODY and calling for a boycott of the Texas Lottery. Judging from all that I've heard and seen in that ya'll are really writing to your state reps, the newspapers, the TLC and the Sunset Commission, I believe ya'll are serious and will put your actions and money where your mouth is.

The only way I will help ya'll with a boycott is if I have at least 10 or more of you who will serve on a committee to discuss a plan of action and who is willing to share the costs with me. The costs defined as being your time and whatever it actually cost to print flyers, send press releases, faxes & emails, make phone calls and the such. We can have "committee meetings" by way of conference calls - I think. Also, I would prefer that the "volunteers" be those of you that have written to me previously since the day we became dissatisfied with the TLC - this would be my only way of "verifying" who you really are!

So, if you really want to get a boycott under way, I need at least 10 volunteers first who will spend some serious time organizing a plan. My phone number is 972-686-0660.

One more thing, I have received "survey" ideas and will work on posting a survey for ya'll. Many thanks for sharing your thoughts - they really do help. If you haven't written but have a suggestion for questions to include in a survey, email your suggestions to me. Click here.

September 22, 2002
Subject: Governor Perry Responds
To: lottoreport@lottoreport.com

Hello Dawn,

Here is a copy of a letter I received from Gov. Perry's office Saturday.

"To address your issue regarding pressure to increase lottery revenue, Governor Perry has not communicated such a directive to the agency. In fact, he recently asked all state agencies to identify budget savings and is committed to presenting a budget that is within the state's means.

So she may also be apprised of your views, I am forwarding your correspondence to Linda Cloud, Executive Director of the Texas Lottery Commission. I am also asking for her staff's response both to you and this office on the concerns you have outlined."

Signed by Dede Keith, Dep. Director of Administration and Constituent Services."

I wonder if Ms. Cloud will give the governor the same old 'bull' she is giving everyone else.

Robert B.
San Angelo, TX

For those of you who may not remember, last month Robert B. wrote to the San Angelo Standard Times, Tony Sanchez and Governor Perry. I posted the commentary that appeared in the San Angelo Standard Times and I posted the original letter that was sent to Mr. Sanchez along with Mr Sanchez' response. Well, now we have a response from Governor Perry. I agree with you Robert, it will be interesting to see how Ms. Cloud responds! Be sure and share that one with us too. Again, I thank you for all your efforts. I can assure you, our efforts are working - we are being heard and changes are imminet.

Click Here to read the original letter to Tony Sanchez and his response.
Click here to read the original letter to Governor Perry and the article
that appeared in the San Angelo Standard Times

Sept 20, 2002
Dear Ms Nettles

Although I live in New York state, I believe the biggest violation of (under)paying (cash option) winners belongs to Ohio Lotto 6/49 (but not to Ohio winners of Mega Millions.)

The Ohio Lotto 6/49 annuity is paid in 30 equal yearly installments, unless the winner chose their CVO. Recently, the Ohio Lottery "simplified" the CVO in their Lotto so that it pays 44% of the annuity. My understanding is that the low CVO compared to their annuity is because the Ohio Lottery uses/used two different percentages for the CVO/annuity, eg, 4.25% for annuity winners but 5.75% for CVO winners. In other words, a $12 million annuity might have an "actual retail value" of $6 million cash; however, the CVO winner would receive $5 million lump sum before withholding (it is believed that an Ohio Lotto 6/49 CVO winner is "shortchanged" by _17%_!!) AFAIK, the Ohio Lottery was sued for this very reason, but, the judge ruled in favor of the Ohio Lottery.

Even though you're in Texas, this might be something to look into if you haven't done so.

NOTE: Powerball's upcoming format change includes a lengthening of the annuity option to 30 equal yearly installments. You might want to compare the percentage of Powerball's CVO/annuity vs Ohio Lotto's 44% CVO when Powerball changes October 6.

Sincerly,
Patrick D.
Bedford Hills, NY

Thank you for your input. I'm not familiar with any other lottery in depth but I can tell you one thing that the people should demand from their states and if the state won't give it to them, then vote the lottery out.

First and foremost - make it a law or make sure that it it spelled out EXACTLY in the rule what percentage of sales players are suppose to receive. Make sure the rule says "shall" not "may" and make sure the percentages are specific and when you add them up, they equal 100%. Most won't. They'll equal 98% and let me tell you, that 2% adds up.

Most people do not understand that all monies collected for each and every drawing is suppose to be divided by 2 first. The state get a share of sales and the players get a share of sales. Period. This is written in the "rules" of all lotteries.

Players need to find out by reading the rule themselves, what percentage of sales goes for prizes and what percentage goes to the state. Then, find out what percentage goes for each prize category from the players share of sales.

After each and every drawing, call the lottery and ask what total sales were.

By knowing these things, one can figure out IF the lottery is paying out what they are suppose to and no matter what, the 6 of 6 winner should receive at least the amount in his "prize pool" - meaning his share of sales. If they are not, then get petitions going, call the newspapers, complain to everybody in sight.

Some lotteries, including New York, wrote it into their rules that they were going to "guarantee" the amount they "advertise" and drummed this up to be great news. But it's not because some of the top prize winners are being short-changed.

The truth is, the lotteries don't really have enough to pay out when someone wins at the $2 Million, $3 Million and $4 million, $6 million levels so what the lotteries are doing is taking money away from the big jackpots to offset the smaller wins.

Heres how to figure this out.

If it takes 5 draws before there is a winner, then add total sales from each draw. Next figure out how much is the players share and how much is the states share. Once you figure the players share, simply figure the percentage the 6 of 6 winner was suppose to get and see if he did. You will be surprised to see how many got more and how many got less that what was "allocated" for the 6 of 6 winner.

An easy way to explain this. Pretend you have $100. First, you split that $100 by 2 - let's pretend the state gets 50% and the players get 50%. This means there's $50 in the players prize pool and the state gets the other $50. (These percentages are the percentages you have to obtain by whatever method)

Now, the 50 dollars has to be divided by the 6 of 6 winners, the 5 of 6 winners, the 4 of 6 winners and the 3 of 6 winners. The 3 of 6 winners usually get a "guaranteed" prize which is a rip off because usually, the lottery takes too much for their share and end up with excess funds that players never see. Anyway ....

Are you with me?

Let's pretend that the "rule" says that the 6 of 6 winners "share" is 60%. Then he has $30 coming.

Let's pretend that the "rule" says that the 5 of 6 winners "share" is 10%. Then he has $5 coming.

Let's pretend that the "rule" says that the 4 of 6 winners "share" is 16%. Then he has $8 coming.

Let's pretend that the "rule" says that the 3 of 6 winners "share" is 14%. Then he has $7 coming.

This is the way every lottery should operate and is the only fair way for both the state and the players. But lotteries are not doing this now - the people just don't know it. (Make sure your rule states "the 4 of 6 SHALL be 16%" or whatever)

The problems started when lotteries began offering the CVO. Prior to that, people had to take annual installments, therefore, the people never knew that all they "really" won was just a percentage of sales - that piddly little ole amount. The lotteries took the 6 of 6's share of sales and invested it to get the winner a return of the amount they advertised - or close to there of called "estimated $XX million."

Because people finally saw the amounts actually won, which was the way it was all along, lotteries have suffered. But lotteries have brought this on themselves because they led people to believe that they had $XX million for them if they won when the truth was, they probably had half that much and the interest was going to make up the differences.

I encourage you to check your lottery. I have checked New Yorks percentages and I can tell you that players in New York get a whole lot less than players in Texas. But New York didn't start out that way - they've just been decreasing the players percentage of sales through rule changes that ya'll didn't know about.

As for Ohio, I haven't checked on it but I will one of these days.

I am aware of the Powerball changes. Lotteries are desperate and their solutions are not made with the players best interest at heart. I predict that all lotteries will be thing of the past because of the methods lotteries implement to "get their sales up." Its absolutely a scam and I think this is very sad. They've ruined a very good thing.

I'm going to post your message - we'll see if we get any input from Ohio players.

Thanks again for writing and I hope this helps you understand how the lotteries pay.

Sept 13, 2002
Subject: New York Lottery drawing of #9-1-1

Dawn, I am sure you have heard of the associated press story report about the drawing of number 911 in yesterday's drawing, but that isn't the only coincidence that day. If you look at the drawing of the day number yesterday for the Texas Pic 3, you may notice that 199 is the exact opposite of 911. (10-1=9, 10-9=1, &10-9=1)(10-9=1, 10-1=9, &10-1=9) I know these drawings are coincidences but it sure makes you wonder sometimes about the lotto commission's integrity. Nah, couldn't be, could it? ha ha.

Anyhow, my check for renewing my subscription for the Lotto Report will go into the mail tomorrow, and I think you do a superb job keeping everyone informed and up to date. I'm still using your Target # theory and expect it to pay off big someday soon if the Lottery Commission doesn't mess up the games to where we have to quit playing altogether. I enjoy Don's addition to your web site and am wondering if he is okay as he hasn't sent anything in over 2 weeks. Sure hope he is just too busy and not sick. Gotta go so you won't have to spend any more of your time reading this, but sometimes I just get carried away. t.c.

Not only have I received countless emails and phone calls about New Yorks Pick3 results of 911 on Sept 11th, but even family members called me (and they don't play any of the games) and so did 2 retailers. I heard the results on TV that night and it appears I thought the same thing everybody else has thought. I find it extremely hard to believe but I don't know what to say. I will say that they certainly got national press for their lottery which is something all lotteries want. And New York certainly got it which helped all Pick3 games world wide.

As for Don, he's had some plays but they've come in before we posted them. The good news is that his "favorites" were not drawn, just the two digits he was expecting. I expect Don is running his tests on the New York lottery to check the outcome of 911 about right now. I need to confess that Don does have a play but it is for the day draw and I refuse to support that drawing. In a message to me on 9-8-02, that was intended only for me, he said:

"I continue to try and find a play in the night draw but not much there. Digits with 44, 08, 17, 26, 35 slightly high. In the day draw, the first digit 0 in a combo type number is excellent. My favorite choices are 059, 095, 068, 086, 089, 098. In the back pair there are 9 pairs that have not arrived as opposed to 4 in the front and 1 in the split. So, a 10 to 1 offerring pays 500 to 1. They are two digit sum 0, 14, 17, 18. (The two digit sum of 18 in the back pair came on 9-11-02 with 199)

With the total sum 8 at 114 in combo type number and has an mdo of 148 in the night draw, a very good specualtion is 017, 026, 035 and 021. Optimally, 4 days is the minimum days until play on the 14 back and 79, 97, 88 are possible. Best play still zero first position. Could be 0-2-1. later. Don"

I have not received an update so keep in mind that this message is now 4 days old in terms of Pick3 plays. So that you know it, he is sending these messages to me because he is "testing" the draws and this is his documentation. I don't want to encourage anyone to spend more money playing these games - the risks are too high. As you can see, Don is alive and well and very muchly tracking the Pick3! When he has a night time play, I'll post it.

Updated: 3:30 PM - Don has sent a new message. He advises against playing what's posted above now. Click here to read his new message and explanation.

This is a question I receive quite regularly - so I'll leave it on this page too

To: <lottoreport@lottoreport.com >
Subject: lottery donations to Texas Education Fund

How do I find out what Texas is doing with the money going to them for education. All the sites I have read are very vague.

The money from the lottery is simply used to lessen the amount the state has to put in each year for the schools. You see, the amount the lottery brings in is a very small percentage of the schools yearly budget. The schools do not get "extra" money, they just get the same ole budgeted amount every year. It's like you owe somebody $100 but you find a $20 bill so now you only have to take $80 from you own pocket to pay the $100. It's the same principal.