The E-mail I Received That Prompted
the Writing of this Page Is As Follows ...

August 4, 2002
Subject: Cash 5

Why are people pushing cash 5 with the new prizes? The total sales are higher or are they? It's not making sense.

My Reply

People are not really "pushing" Cash 5. Let me explain what you are seeing by using simple logic. First and foremost, last Monday (7-29-02) when these changes took effect, the majority of the players really had no idea that there was even a change until they took their playslips in to have them run. That was the first clue because they had to fill out new slips.

Second, players didn't know that they were playing for less money because the Tx Lottery never disclosed this fact - and in all likely hood, players won't know this until they actually win something. Players "may" have learned that if they have 2 numbers, then they will have $2 coming back and they "may" have learned that there were going to be 6 draws per week.

So, with this in mind, I "expected" to see play as usual which we did.

Now, comes the facts. In the first week under the new rule, the new $2 prizes totaled $626,772 compared to the last week of draws prior to the change, where the 3 of 5 prizes totaled $519,456 - and no prize was less than $25.

Logically speaking, $25 is an amount that is "worth" putting in your pocket. At least it would buy lunch or give you play money for the week. But, on the other hand, a $2 prize, which is only a $1 profit, is not worth putting into your pocket - rather, it's worth another shot at winning something. And the lottery KNOWS & BANKS on this well-known behavior pattern of players. As a result, players did the same thing with that $2 that players "did" and/or "do" with the $1, $2, $3, $5, $7 & $10 they "won" playing Lotto Texas, Texas Million, Texas 2 Step & scratch offs - they gave the money back - most likely, in this case, by purchasing a $2 Cash 5 Quick Pick.

The new payouts will guarantee the failure of this game. When players match 3 of 5 and 4 of 5 numbers and when they go to collect, they will become "really" angry and quit. Judging from my email, this is already happening.

Regarding "higher sales?" First, there are now 6 draws per week which "automatically" increases sales for now. The week before the matrix change, sales per draw averaged $519,699 (4 draws) ... but the first week after the change, sales averaged $471,852 per draw (6 draws). If players were supporting these changes, sales should have been much higher. Here's how I know.

The first week under the new rule - 2 of 5 players (at $2 apiece) won a total sum of $626,772 and 3 of 5 players won (average $11 apiece) $327,657. This is all "give back money" or will be future "unlcaimed prize money," in my opinion.

The week prior to the new rule, 3 of 5 players won a total of only $519,456. But, these winnings were "pocket money" - not "give back money."

Now, the total sales for the first week under the new rule was $2,831,117 and total sales the week before was $2,078,799. The sales increase was only $752,318 after adding 2 more draws and having $626,772 + $327,657 in useless prize money - "give back money" is what I call it.

Since most players spend $5 to $10 per drawing, winning the new prizes of $2 and $10, will further encourage players to quit the game FAST. It won't be worth the effort for them to play. Unfortunately, I predict, we will watch the demise of Cash 5 one day at a time - a slow but sure Cash 5 death.

When you take all these factors into account, the answer to your question is NO, clearly players are NOT supporting this new game and it shows in total sales.

From the Retailers Perspective -
Well, this one is interesting. Yes, since retailers sold 752,318 more tickets than they did the week before, this means they got a raise in Cash 5 revenue. Let's see. From Cash 5 total sales, the retailers split $37,616 more than last week. Now, there are 16,000+ retailers so that means each retailer averaged an additional $2.35 in income. (Retailers receive a commission of 5% on each $1 sale)

OH NO, I forgot. The TLC is suppose to pay the retailer who sells the top prize winning ticket 1% of sales as an added bonus. Now, last week there were 6 draws but only one draw produced winning 5 of 5 tickets. So, this means the TLC got to keep the retailers bonus money and it amounted to $22,224. There went that $2.35 increase!

Buuutttt ... the retailers were told that by reducing the balls and improving the odds, there would be more winners thus more bonus money for them. Gosh, the TLC says that one in every 435,897 tickets should win (under 5/39 it was one in every 575,757 tickets sold) and they certainly sold that many tickets in 4 of the 6 drawings ... what on earth happened? Boy, the TLC sure was lucky last week ... they didn't have to pay those bonus' yet the Cash 5 game supported better odds ... this helped the TLC's bottom line. And yes, I know what ya'll are thinking right now and I can assure you, I've had the same thoughts.

Now, do you think the retailers are happy about the additional work involved for $2.35 in additional income for one whole week? What's worse, the retailers are the ones who HAVE to listen to the players complaints and some players can be downright verbally abusive. For the retailers non-gambling customers who are hearing these complaints, what action do you think the retailers might be forced to take? You know that answer and I can tell you first hand that I know of huge accounts that the TLC is currently in jeopardy of losing for this very reason. And I can assure you that if the TLC loses "more" retailers, lottery sales will decline.

From the Texas Lottery's Perspective -
Right now as I write this, they are viewing the Cash 5 rule change as a successful move. After all, they have $752,318 in additional sales plus Lord only knows how much the "unclaimed prize fund" will increase at the end of 180 days due to the number of folks who do not know to collect their $2. The Texas Lottery will paint a rosy picture about how great the "enhancements" are, but at a later date, you will see them back with another game plan and an "excuse" as to why sales are down again. Just like they are doing right now for Lotto Texas and Pick3.

A very important question to ponder - did the 752,318 cover the cost of enhancing the game? You may not remember this, but in 1992, the Texas Lottery recovered all "start up costs" on the first day of sales. Did this "enhancement" do that? I'll bet not.

From G-Tech's Perspective -
Well, G-Tech should be happy campers. They did get a raise. The way I see it, their start up cost involved some re-programming of the lottery terminals and the distribution of playslips and other printed literature. For them though, that's not a big deal because they have to be in the stores twice a month anyway. But I think that while G-Tech made a little extra money in the first week, it was not near the amount they had hoped for.

In Conclusion
If the Texas Lottery wants the respect of the people and if they want to "truly" operate under the "title" they currently give themselves, "integrity," then they would not offer any prizes that do nothing more than to "entice" or provide the "incentive" for players to simply give their "measily" winnings back until all is 'finally' lost. It is my opinion that the Texas Lottery is the biggest "legal" scam in Texas.

I think this is very sad because the lottery "could" be both - a respectable organization and a profitable organization for the state without stooping to such practices to make "more" money with such under-handed tactics.

We Need A New Law for Texas -
There should be a new law passed that says the Texas Lottery can NOT conduct any lottery game that pays a player less than $10 for $1 spent. This should include the scratch tickets too.

While the Texas Lottery will oppose this with all their might because of the unknown, fear and ego problems, this could very well have a more positive impact than they ever dreamed possible. But because no one has ever done it before - our executive leaders aren't willing to gamble on the unknown - they only want to use the "guaranteed" methods of increasing sales and the unclaimed prize fund by legally scamming folks out of their money. And, FYI, the Texas Lottery is not "really" giving 100% of the unclaimed prizes to the teaching hospitals.

Until such time as changes are made, as far as I am concerned, there is NO "integrity" reserved for the Texas Lottery in my mind ... after all, they have knowingly and purposely taken actions with the sole intent of making a financial gain for themselves at the expense of the consumers. There is nothing fair in the rules of today's games - from the prize structures, the withholding of the players share of sales for "reserve," the non disclosure of pertinent game facts, false and/or misleading advertising, short-changing 6 of 6 winners, down to the unclaimed prize monies ... it's all unfair to the people of Texas. Ya'll just don't know it because you do not take the time to get the details about the money and the TLC certainly won't tell you candidly.

If you agree with me about needing a law to the effect that I just mentioned, or any other one for that matter, then tell the Sunset Commission and call your state representative and demand changes. And if changes aren't made, then it's time to vote the Lottery out. And for whatever this is worth, I'd truly hate it if we had no lottery.

If you'd like to email the Sunset Commission, here is a link for you. Click here.

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(The Players Comments Page)

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7-15-02
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7-8-02
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7-1-02
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6-24-02
6-25-02
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6-17-02
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6-10-02
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6-3-02
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5-27-02
5-28-02
5-30-02
5-31-02
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5-20-02
5-21-02
5-23-02
5-24-02
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5-13-02
5-14-02
5-16-02
5-17-02
-

5-6-02
5-7-02
5-9-02
5-10-02
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New

4-29-02
4-30-02
5-2-02
5-3-02
-

4-22-02
4-23-02
4-25-02
4-26-02
-

4-15-02
4-16-02
4-18-02
4-19-02
-

4-8-02
4-9-02
4-11-02
4-12-02
-

4-1-02
4-2-02
4-4-02
4-5-02
-

3-25-02
3-26-02
3-28-02
3-29-02
-

3-18-02
3-19-02
3-21-02
3-22-02
-

3-11-02
3-12-02
3-14-02
3-15-02
-

3-4-02
3-5-02
3-7-02
3-8-02
-

2-25-02
2-26-02
2-28-02
3-1-02
-

2-18-02
2-19-02
2-21-02
2-22-02
-

2-11-02
2-12-02
2-14-02
2-15-02
-

2-4-02
2-5-02
2-7-02
2-8-02
-

0
0
0
0
(2) $32,015
0
-

5/37

(1) $51,854
(1) $47,605
(1) $53,051
0
-

(2) $26,953
0
(2) $27,306
(1) $55,354
-

0
(2) $24,349
(3) $18,185
(2) $27,809
-

0
(2) $25,247
0
0
-

0
(1) $48,634
0
(5) $11,025
-

(1) $53,689
0
0
(3) $18,704
-

0
0
0
(1) $57,005
-

(1) $47,047
0
(3) $18,269
0
-

(2) $26,989
0
(3) $18,653
0
-

(1) $54,880
(3) $16,709
(1) $56,124
(2) $29,021
-

(2) $28,115
(1) $51,093
(2) $28,337
0
-

Rule

0
(1) $51,149
0
0
-

0
(2) $25,746
(2) $28,901
(6) $9847
-

(1) $57,127
0
0
(1) $59,979
-

(2) $28,234
(1) $52,362
(3) $19,548
0
-

(1) $58,549
0
0
(1) $61,701
-

(1) $57,728
0
(1) $60,245
(2) $29,995
-

(1) $59,382
0
(1) $60,059
(1) $61,035
-

(1) $59,698
0
(1) $60,580
0
-

(1) $61,321
0
(2) 31,327
0
-

(1) $60,348
(2) $26,573
0
(2) 32,980
-

(1) $59,603
0
0
(2) $31,273
-

(3) $20,011
(3) $18,078
0
(1) $63,125
-

0
(1) $54,781
(1) $62,474
0
-

$318
$525
$508
$577
$102
$622
-

New

$576
$529
$674
$948
-

$493
$924
$524
$557
-

$1052
$537
$598
$343
-

$817
$368
$1029
$1041
-

$420
$551
$539
$475
-

$1123
$489
$713
$411
-

$694
$1059
$1028
$615
-

$1002
$882
$1060
$611
-

$552
$913
$658
$974
-

$468
$771
$535
$738
-

$609
$545
$222
$522
-

$505
$544
$512
$829
-

Was

$960
$434
$707
$790
-

$1036
$486
$468
$306
-

$702
$732
$683
$285
-

$572
$538
$514
$817
-

$306
$934
$901
$520
-

$495
$662
$508
$517
-

$602
$1232
$453
$538
-

$550
$1056
$466
$784
-

$631
$780
$412
$843
-

$592
$782
$895
$496
-

$518
$626
$935
$691
-

$780
$605
$689
$772
-

$9
$13
$11
$12
$9
$12
-

Matrix

$25
$25
$29
$25
-

$26
$27
$26
$29
-

$30
$24
$29
$20
-

$26
$21
$28
$30
-

$31
$26
$25
$23
-

$32
$27
$28
$26
-

$30
$25
$29
$24
-

$24
$26
$28
$29
-

$25
$24
$27
$22
-

$27
$27
$21
$26
-

$26
$26
$27
$23
-

Adopted

$28
$25
$25
$25
-

$27
$24
$25
$25
-

$27
$26
$22
$17
-

$27
$29
$25
$24
-

$22
$31
$26
$27
-

$29
$21
$29
$25
-

$27
$30
$25
$26
-

$25
$24
$23
$26
-

$26
$24
$23
$27
-

$27
$24
$27
$27
-

$28
$27
$27
$31
-

$26
$27
$29
$27
-

$563,398
$518,309
$271,534
$570,662
$606,934
$300,280
$2,831,117

& Prize Structure

$518,537
$476,052
$530,511
$553,699
$2,078,799

$539,072
$491,692
$544,127
$553,536
$2,128,427

$534,363
$486,983
$545,572
$556,160
$2,123,078

$546,050
$504,951
$498,112
$558,131
$2,107,244

$517,544
$484,760
$550,161
$569,723
$2,122,188

$521,139
$486,634
$524,768
$551,298
$2,083,839

$536,885
$486,958
$538,850
$561,142
$2,123,835

$552,799
$504,732
$555,481
$570,055
$2,183,067

$470,479
$482,241
$548,073
$569,263
$2,070,056

$539,782
$493,821
$559,599
$566,856
$2,160,058

$548,807
$501,271
$561,234
$580,435
$2,191,747

$562,304
$510,934
$566,732
$576,827
$2,216,797

.. Impact Obvious

$549,367
$511,490
$585,608
$600,329
$2,246,794

$563,539
$514,923
$578,019
$590,860
$2,247,341

$571,277
$518,469
$587,672
$599,792
$2,277,210

$564,677
$523,620
$586,438
$594,270
$2,269,005

$585,481
$541,975
$608,700
$617,017
$2,353,173

$577,279
$526,993
$602,460
$599,914
$2,306,646

$593,820
$527,529
$600,593
$610,363
$2,332,305

$596,982
$536,407
$605,801
$621,034
$2,360,224

$613,214
$561,617
$626,540
$634,124
$2,435,495

$603,474
$531,468
$625,481
$659,603
$2,420,026

$596,028
$540,961
$612,062
$625,467
$2,374,518

$600,330
$542,362
$609,755
$631,257
$2,383,704

$618,054
$547,812
$624,739
$624,325
$2,414,930