If All Obligations Were Met In The
First Year Since The Texas Lottery
Added Those 4 Balls ...
Then the TLC Was Short by $8,215,531!

Brought to you by
The Lotto Report
A Bi-Weekly Publication

Posted: July 25, 2001
Revised: July 29, 2001

If the TLC disburses Lotto Texas funds according to the written rule,
then someone will not receive their fair share. By taking the percentage
of sales due each category, then tallying the amount actually paid to just the 6 of 6
winners alone, one will discover a shortage of funds in the amount of $8,215,531.

There have been 105 drawings since July 19, 2000 - the day they began
using the 54 balls. From Lotto Texas sales, this is how the
funds are allocated for division:

* 100% of Lotto Texas Sales
How the Funds Are Divided 		6/50 6/54
6 of 6 Winners Share 32% 37.532%
5 of 6 Winners Share 2.5% 2.7885%
4 of 6 Winners Share 9% 6.8805%
3 of 6 Winners Share
(Guaranteed Prize - Increased from $3 to $5)		 5.5% 6.699%
Schools 38% 33%
TLC 7% 7%
Retailers 5% 5%
Reserve 1% 1.1%
100% 100%

Since 6/54
First 6/54 Draw - July 19, 2000
End One Year - Anniversary Draw - July 18, 2001
** 105 draws total - Exactly one year to date

To Compare - We must take the last 105 draws under 6/50
Last Draw under 6/50 was held on July 15, 2000
Counting back to the draw that would make 105 Draws - July 17,1999
Total Sales For These Draws:
6/54 - $718,714,398 VS 6/50 - $582,810,892
A 19% increase - Not a 30% increase as quoted
in the TLC press release. Also short of funds
to meet obligations by $8,215,531

Category 6/54 % of Sales Allocated For Actual Paid Out
6 of 6 Winners 37.532% $269,747,888 $282,006,009
***Top Prize Carryover
from 6/50 - Credit
(See explanation below)		 <$8,017,485>
**** Top prize carryover - End 105 Draws - Consider Paid Out
(See explanation below) 		$4,572,073
5 of 6 (6/50 - $14,586,079) 2.7885% $20,041,351 $20,041,357
4 of 6 (6/50 - $52,516,449) 6.8805% $49,451,144 $49,451,788
3 of 6 (6/50 - $28,802,760) 6.699% $48,146,678 $47,548,850
Reserve Fund (6/50 - $5,828,109)
(The Reserve Fund was not needed for its intended purpose - paying 3 of 6 winners)		 1.1% $7,905,858 $7,905,858
17,000 Retailers (6/50 - $29,140,545) 5% $35,935,720 $35,935,720
Schools (6/50 - $221,468,139) 33% $237,175,751 $237,175,751
TLC (6/50 - $40,796,762) 7% $50,310,008 $50,310,008
100% $718,714,398 $726,929,929

Total

$726,929,929

Lotto Texas Income

 $718,714,398
Negative Balance <$8,215,531>

Question - Who won’t receive their share of sales? The players? The TLC? The schools?
It’s evident, the TLC is committed to $8,215,531 more than what they brought in
from Lotto Texas sales. Incidentally, it is not in the rule that the reserve fund be used to
fund overpayments to the 6 of 6 winners - it clearly states the reserve fund is intended
for the 4th prize and to carry funds rounded down from the 4 of 6 and 5 of 6 prizes
categories. The 6 of 6 share is pari-mutuel too - when there is a winner, all funds in
the prize pool are suppose to be divided by the winners - also funds from
each category are suppose to be kept separate.

Have you noticed that the percentage allocated for the players prize pool does
not equal 55%. That’s because the 55% includes monies placed in the “reserve fund.”
Notice too how equally the TLC divides the 4 of 6 and 5 of 6 winners share of sales.
There are no overpayments to these players. Nor did the TLC need any
monies from reserve to pay the 3 of 6 winners.

The Retailers - It doesn’t appear the retailers came out ahead since the
change to 6/54 either. Retailers received 5% of total sales under both 6/54 and 6/50.
This equates to an increase of $6,795,175 for Retailers in just the last 105 draws.
Let’s calculate. There’s approximately 17,000 retailers - so we divide the increase
by 17,000. Each retailer averaged a $400 increase in their income from Lotto Texas sales.
This is a dollar and a penny increase per day per retailer. Do you think Retailers consider
this successful? We must also take into consideration how much they may have lost due
to the fact that overall, all lottery revenues are down. Does this $400 increase offset those
commissions lost? Is this why lottery signs are coming down?

Since 6/54, the TLC sold 135,903,506 MORE Lotto Texas tickets ...
a 19% increase ... but there’s fewer winners thanks to those 4 new balls.

 

Prize 6/50 6/54
6 of 6 39 23
5 of 6 9387 7769
4 of 6 510,124 462,611
3 of 6 9,600,920 9,509,770
Total 10,120,470 9,980,173

Successful? Is this successful? If yes, for whom?

The TLC brought in $146,062,038 in sales during 7 drawings under 6/54.
Here's the list of those draws:

 

9-2-00

 $36 Million $11,097,011 2-24-01 $36 Million $10,433,683
9-6-00 $46 Million $15,271,203 2-28-01 $45 Million $13,939,229
9-9-00 $60 Million $24,467,736 3-3-01 $56 Million $20,327,827
3-7-01 $85 Million $50,525,349
Total $50,835,950 Total $95,226,088

Total sales in these 7 draws were $146,062,038 ... yet the entire 6/54 sales increase
was only $135,903,506. The truth is, the entire sales increase came during a total
of 6 different “rolls.” (To see the rolls, review the “Total Sales" table below.)

Last year, when proposing to add the 4 balls to Lotto Texas, the TLC projected
they would contribute an additional $26 million to the school fund. They failed to reach
that goal. Under 6/54, Lotto Texas sales generated an additional $15,707,612 for
the school fund - short of projections by $10,292,388 - BUT - after all the overpayments
to the 6 of 6 winners, one can’t help but wonder if the school fund
will ever see their FULL share of sales.

The TLC itself receives 7% of Lotto Texas sales - this came out to be
an additional $9,513,246 for them under 6/54. I wonder how much their
expenses increased - they had to replace all playslips before the game could be
played, they had to re-do all their promotional pieces to explain the 6/54 game
not to mention all the advertising that was necessary too. Did this $9 million increase
cover these costs - if, of course, the TLC received their full share of sales!

The TLC must make adjustments to cover the over payments to the
6 of 6 winners. The funds have to come from either the reserve fund
(which is the players money), the school fund or the TLC’s share.

Below are two tables. The first table shows each 6 of 6 winner under 6/54 and
the breakdown for his win. I think you'll find the winners information very interesting.

The second table shows the total sales for the first 105 drawings under 6/54
and the last 105 drawings under 6/50. Take just a minute to compare sales
for “like jackpots.” For instance, see where sales on 12-6-00 with a $38 million
jackpot were $10,681,750 but sales on 10-23-99 with a $38 million jackpot
were $14,754,335. Does this imply players are happy as a lark? Also, keep in mind
that sales began declining in August 1999 because this was when the TLC first
proposed to add 4 balls and this angered players. The numbers speak for themselves.

In conclusion, YES, the TLC increased their sales but it would seem,
they have absolutely nothing to show for it except frustrated and
angry Texans. As the Corpus Christi Caller Times summed,
the Texas Lottery is truly an embarrassment to Texas.

 

Confusing Players
* The TLC likes to complicate the division of monies for the media too. They tell the media that the players receive 55% of sales and the state receives 45%. They refer to this as the "prize pool." But then they say, "the jackpot prize winners divide 68.24%, 5 of 6 winners divides 5.07%, 4 of 6 winners divides 12.51%, and 12.18% is set aside for the 3 of 6 winners from the "prize pool.'" They fail to stress that this is "of 55% OF TOTAL SALES." To calculate the division of funds using their words, one needs to take 55% of sales first, then 68.24% of that figure to figure out how much the 6 of 6 prize winner is entitled to. Why can't they simply state that, "FROM TOTAL SALES, the 6 of 6 winner receives 37.532%, the 5 of 6 winners receives 2.785%, the 4 of 6 winners receives 6.8805, and 6.699% is set aside for the the 3 of 6 winners." Clearly, the TLC likes to complicate matters - why do you suppose that is?

About Those 105 Draws - The TLC Talks About One Year/102 Draws
** The TLC compared the first 102 draws with the last 102 draws under 6/50 and called this "One Year" even though "one year" is marked by a total of 105 draws. The reason - by taking only 102 draws, it helped their percentages. When you see the table at the bottom of this page, I think you'll understand. You see, sales on July 19, 1999, the 105th draw under 6/50, were $14,453,390 but the TLC doesn't want this to count in their calculations. Plus, the sales in the last 3 draws under 6/54 (July 11th, 14th, & 18th, 2001 ) are so much lower than the draws following the July 19, 1999 draw. Also, let's not forget that they got a head start when 6/54 began because there was a $21 million jackpot. You can see this clearly on the sales table below. I like to see the WHOLE picture and the true picture - not the propaganda they distribute. Don't you? As you can see, "success" is not "black and white" like they want you to believe - as evidenced by what they send the press to convey to ya'll. They may have increased sales, which was not a surprise to me, but I don't think they came out ahead like they wanted.

About The Carry-overs
*** Because of the carry-over that belongs to the 6 of 6 winners - these figures must be included for us to arrive at the true bottom line. To begin with, 37.532% of total sales is the pari-mutuel amount allocated to the 6 of 6 winners. That amount for 6/54 was $269,747,888. However, at the beginning, on July 19, 2000, there was a carryover from 6/50 that belonged to the first 6 of 6 winner under 6/54. The carry-over amount for the 6 of 6 winner was $8,017,485. We must issue a credit in the “paid out” column above. By the same token, at the end of the 105 draws on July 19, 2001, there was $4,572,073 in the 6 of 6 prize pool that belongs to the first 6 of 6 winner after the 105 draws. So, again, to be fair, we must count this amount as paid in order to see how the TLC actually came out in exactly 105 draws.

For the record, there is a carryover for the 4 of 6 and 5 of 6 prizes too but it is miniscule. Lotto Texas is a “pari-mutuel” game - this means the prize amounts are based upon a percentage of sales and is then divided among the winners. This is suppose to apply to the 6 of 6 winners as well.

About The Reserve Fund ...
**** The Reserve Fund ... the written rule states: “Rule §401.305 "Lotto Texas" On-Line Game Rule. (4) Prize reserve fund. (A) The Lotto Texas prize reserve is 2.0% of the prize pool. (B) The Lotto Texas prize reserve fund may be increased or decreased by any amounts allocated to the prize pool and not paid to the winners. The Lotto Texas prize reserve fund may be increased or decreased, for example, by rounding down, paying Lotto Texas prizes, and roll-over amounts from the fourth prize. The Lotto Texas prize reserve fund may be used only for the Lotto Texas game.” Did you notice that the TLC didn’t need any of the reserve fund to pay the 3 of 6 winners in the last 105 draws - but they claim the players prize pool is 55% of sales and that's how much they give players. Gimme a break.

 

The 6/54 Winners

Win
Date		 Jackpot Amount
&
Winners
Name		 Amount Paid
or Invested
For The 6 of 6 Winner		 Amount
In Prize
Pool
37.532%
of Total
Sales
Cost to make good on advertised amount 		Amount
Overpaid		 Total
Sales
In
Roll
7-18-01 Carryover for the next
6 of 6 winner under 6/54 -
- Ends One Year - 		$4,572,073 $4,572,073 $4,572,073 -0- $12,181,800
7-7-01 $13M - CSF Partnership $7,541,024 $6,513,661 $7,541,024 $1,027,365 $17,354,953
6-23-01 $13M - Winner Not Collected $7,302,952 $6,636,059 $7,302,952 $666,893 $17,681,070
6-9-01 $21M - Omar Elizondo, Trustee $11,648,801 $11,070,604 $11,648,801 $578,197 $29,496,440
5-19-01 $28M - Mayflower Enterprizes, Glen Karisch, Agent $15,299,536 $14,955,112 $15,299,536 $344,424 $39,846,297
4-25-01 $4M - Christie Barnes $2,206,643 $1,457,946 $2,206,643 $748,697 $3,884,541
4-21-01

$25M - 4 Winners
Jack Yother ($3,430,672)
Robby Setser & Gordon Wheaton ($3,430,672)
Bonnie Barbato & Phylis Horan ($3,430,672)
William R. Glover ($3,430,672)

 $13,722,690 $12,865,035 $13,722,690 $857,655 $34,277,519

3/31/01

$4M -
Tristan Tamez

 $2,240,449 $1,753,457 $2,240,449 $486,992 $4,671,899
3/28/01 $26 M - Gary Ennis $14,493,887 $14,465,655 $14,402,689 -0- $38,542,190
3/7/01 $85 M - Robert & Beverly Chody $51,214,323 $51,214,323 $48,786,362 -0- $136,455,086
1/27/01 *$23M - Paul C. Looney $12,671,990 $12,421,990 $12,671,749 $249,759 $33,097,064
1/6/01 $40 M - Dorothy Ramirez/Mary Martinez $22,637,040 $22,637,040 $22,222,400 -0- $60,313,971
12/6/00

$38 M - 2 Winners
Elvester Benson $10,564,403
Cynthia Higgins $10,564,403

 $21,128,806 $19,878,718 $21,128,806 $1,250,088 $52,964,720
11/8/00

$48 M - 2 Winners
Jodi $ Jeffery Eads ($12,521,184)
James Vincent & Terrence Como ($12,521,184)

 $25,042,368 $24,482,080 $25,042,368 $560,288 $65,229,890
10/7/00 $10M - JR Lloyd $5,301,654 $5,301,652 $5,242,040 -0- $14,125,689
9/27/00 $19 M - John Robert Peveto $9,923,244 $9,817,843 $9,947,336 $129,493 $26,158,597
9/8/00 $60 M - Lois Loden & John Osorio $34,121,101 $34,121,101 $31,998,672 $90,912,042 -0-
8/5/00 $9M - Linden Interests $5,035,303 $5,035,303 $4,734,988 -0- $13,416,027
7/26/00 40M - Sweet 16 Partnership
Carryover from 6/50 		$20,545,440
 $10,548,153
$8,017,483 		$20,545,440
 $1,979,804
 $28,104,426
$25,054,633


* Paul C. Looney - The TLC press release shows a different amount paid to him than the official winners list shows. The winners lists shows the correct figure.

Notice how some winners received the exact amount that was in the prize pool while other winners received the exact amount that it cost to receive a return of the advertised jackpot amount. Did you know that last year, some winners didn’t even receive the full amount that was in the prize pool? Some winners were actually shortchanged! (This is the first page of the list of winners I have. I’m posting just this one page for now because it shows the amount paid to support my claim regarding how much the 6 of 6 winners were actually paid. I will be issuing another press release involving the winners and the actual amounts paid them in the coming weeks.)

 

 

Total Sales - Compare 6/54 to 6/50

6/54 - 105 Draws

First Draw Under 6/54
July 19, 2000
Last Draw Marking One Year
July 18, 2001		 6/50 - 105 Draws

Last Draw Under 6/50
July 15, 2000
First Draw To Mark 105 Draws
July 17, 1999
Draw Date

Total
Sales

Jackpot
(Millions)

 


 Draw Date Total
Sales		 Jackpot
(Millions)
07/18/01
07/14/01
07/11/01
07/07/01
07/04/01
06/30/01
06/27/01
06/23/01
06/20/01
06/16/01
06/13/01
06/09/01
06/06/01
06/02/01
05/30/01
05/26/01
05/23/01
05/19/01
05/16/01
05/12/01
05/09/01
05/05/01
05/02/01
04/28/01
04/25/01
04/21/01
04/18/01
04/14/01
04/11/01
04/07/01
04/04/01
03/31/01
03/28/01
03/24/01
03/21/01
03/17/01
03/14/01
03/10/01
03/07/01
03/03/01
02/28/01
02/24/01
02/21/01
02/17/01
02/14/01
02/10/01
02/07/01
02/03/01
01/31/01
01/27/01
01/24/01
01/20/01
01/17/01
01/13/01
01/10/01
01/06/01
01/03/01
12/30/00
12/27/00
12/23/00
12/20/00
12/16/00
12/13/00
12/09/00
12/06/00
12/02/00
11/29/00
11/25/00
11/22/00
11/18/00
11/15/00
11/11/00
11/08/00
11/4/00
11/1/00
10/28/00
10/25/00
10/21/00
10/18/00
10/14/00
10/11/00
10/7/00
10/4/00
9/30/00
9/27/00
9/23/00
9/20/00
9/16/00
9/13/00
9/9/00
9/6/00
9/2/00
8/30/00
8/26/00
8/23/00
8/19/00
8/16/00
8/12/00
8/9/00
8/5/00
8/2/00
7/29/00
7/26/00
7/22/00
7/19/00
$4,227,390
$4,376,620
$3,577,790
$5,211,833
$4,071,613
$4,463,161
$3,608,346
$5,345,910
$4,354,042
$4,403,490
$3,577,628
$6,275,505
$5,320,858
$5,405,539
$4,407,534
$4,412,294
$3,674,710
$7,889,700
$6,754,373
$6,169,170
$5,308,558
$5,237,578
$4,304,019
$4,182,899
$3,884,541
$7,761,398
$6,302,124
$6,063,706
$5,060,233
$4,906,585
$4,183,473
$4,671,899
$8,528,600
$7,826,169
$6,475,282
$6,150,053
$4,893,936
$4,668,150
$50,525,349
$20,327,827
$13,939,229
$10,433,683
$8,264,974
$7,488,039
$6,029,392
$5,864,280
$4,833,521
$4,856,889
$3,891,903
$7,693,993
$6,234,740
$5,859,661
$4,770,903
$4,776,828
$3,706,939
$12,073,564
$8,611,363
$8,061,343
$6,088,519
$6,597,874
$5,422,619
$5,078,256
$4,067,646
$4,312,787
$10,681,750
$9,305,844
$7,335,005
$6,160,311
$5,604,627
$5,239,768
$4,360,216
$4,277,199
$13,904,265
$11,044,369
$8,430,921
$7,398,192
$5,900,971
$5,520,497
$4,545,743
$4,649,526
$3,835,406
$5,282,323
$4,414,022
$4,429,344
$6,453,517
$6,042,188
$4,956,715
$4,868,317
$3,837,860
$24,467,736
$15,271,203
$11,097,011
$8,633,758
$7,391,580
$5,822,593
$5,447,972
$4,521,523
$4,456,804
$3,801,862
$5,075,592
$4,266,603
$4,073,832
$12,102,843
$8,886,969
$7,114,614
$9
$6
$4
$13
$9
$6
$4
$13
$9
$6
$4
$21
$16
$13
$10
$6
$4
$28
$22
$18
$14
$10
$6
$4
$4
$25
$19
$15
$10
$7
$4
$4
$26
$20
$15
$11
$8
$4
$85
$56
$45
$36
$29
$23
$18
$14
$9
$6
$4
$23
$18
$14
$9
$6
$4
$40
$33
$27
$22
$17
$13
$9
$6
$4
$38
$30
$23
$19
$14
$10
$6
$4
$48
$37
$29
$22
$18
$13
$9
$6
$4
$10
$6
$4
$19
$14
$9
$6
$4
$60
$46
$36
$29
$23
$17
$13
$9
$6
$4
$9
$6
$4
$40
$30
$21 		7/15/00
7/12/00
7/8/00
7/5/00
7/1/00
6/28/00
6/24/00
6/21/00
6/17/00
6/14/00
6/10/00
6/7/00
6/3/00
5/31/00
5/27/00
5/24/00
5/20/00
5/17/00
5/13/00
5/10/00
5/6/00
5/3/00
4/29/00
4/26/00
4/22/00
4/19/00
4/15/00
4/12/00
4/8/00
4/5/00
4/1/00
3/29/00
3/25/00
3/22/00
3/18/00
3/15/00
3/11/00
3/8/00
3/4/00
3/1/00
2/26/00
2/23/00
2/19/00
2/16/00
2/12/00
2/9/00
2/5/00
2/2/00
1/29/00
1/26/00
1/22/00
1/19/00
1/15/00
1/12/00
1/8/00
1/5/00
1/1/00
12/29/99
12/25/99
12/22/99
12/18/99
12/15/99
12/11/99
12/8/99
12/4/99
12/1/99
11/27/99
11/24/99
11/20/99
11/17/99
11/13/99
11/10/99
11/6/99
11/3/99
10/30/99
10/27/99
10/23/99
10/20/99
10/16/99
10/13/99
10/9/99
10/6/99
10/2/99
9/29/99
9/25/99
9/22/99
9/18/99
9/15/99
9/11/99
9/8/99
9/4/99
9/1/99
8/28/99
8/25/99
8/21/99
8/18/99
8/14/99
8/11/99
8/7/99
8/4/99
7/31/99
7/28/99
7/24/99
7/21/99
7/17/99		 $6,503,436
$5,454,008
$5,041,336
$3,923,839
$4,132,024
$8,033,706
$6,345,367
$5,275,092
$5,004,585
$4,177,326
$4,137,605
$4,691,184
$4,672,388
$3,697,672
$5,067,312
$4,259,413
$4,241,370
$4,436,518
$4,331,865
$5,953,933
$5,406,451
$4,446,270
$4,270,944
$3,919,156
$5,629,796
$4,561,341
$4,474,369
$9,406,257
$7,350,381
$6,106,704
$5,682,128
$4,484,542
$4,202,520
$10,460,057
$8,519,451
$6,574,917
$5,954,418
$4,858,839
$4,893,348
$4,024,080
$4,421,200
$4,028,369
$4,523,834
$4,099,501
$4,515,653
$7,239,394
$6,642,655
$5,307,559
$4,975,603
$3,957,492
$5,717,552
$4,493,078
$4,420,680
$3,947,997
$4,974,567
$3,892,975
$5,711,475
$4,697,823
$4,117,450
$4,089,185
$5,121,041
$4,014,211
$10,083,191
$8,335,522
$6,949,642
$5,858,113
$5,419,095
$4,734,552
$4,447,701
$4,055,863
$4,565,059
$7,165,836
$6,691,578
$5,442,768
$5,063,668
$3,900,308
$14,754,335
$10,498,276
$8,521,898
$6,484,407
$6,009,462
$4,973,386
$4,909,878
$3,812,600
$4,341,583
$5,102,742
$5,015,375
$4,007,266
$6,226,194
$4,830,423
$5,224,800
$4,073,409
$8,910,268
$6,875,186
$6,388,456
$5,257,373
$5,143,976
$4,060,704
$5,953,942
$4,919,244
$4,687,003
$5,593,598
$5,367,609
$4,185,971
$14,453,390		 $16
$12
$9
$6
$4
$21
$16
$12
$9
$6
$4
$9
$6
$4
$9
$6
$4
$6
$4
$13
$9
$6
$4
$4
$10
$6
$4
$23
$17
$13
$9
$6
$4
$28
$22
$17
$13
$9
$7
$4
$4
$4
$4
$4
$4
$18
$14
$10
$7
$4
$10
$7
$4
$4
$7
$4
$10
$7
$4
$4
$7
$4
$29
$23
$17
$13
$10
$7
$4
$4
$4
$18
$14
$10
$7
$4
$38
$29
$22
$18
$14
$10
$7
$4
$4
$10
$7
$4
$14
$10
$7
$4
$23
$18
$14
$10
$7
$4
$10
$7
$4
$10
$7
$4
$37

6/54

Total Sales: 718,714,398

A 19% Sales Increase but
they had $146 Million in sales
in 7 draws alone!

Total Winners
9,980,173

6/50

Total Sales: $582,810,892

Total Winners
10,120,470

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