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Originally Created: March 16, 2000
Updated: Nov 9, 2015 - 1:30 PM
(Added link to news story at 10 PM)

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- Part 8 -
The Tax Break Shenanigans of J. Winston Krause

In 2008, Commissioner Krause sued the IRS to get a
refund of interest and penalties he had paid for a disallowed
deduction and income. The disallowed deduction ... he
bought Canadian dollars for $20K; claimed he paid
$2.8 million; he showed a loss of <$2.7 million> yet
he had sold the Canadian dollars for $19.5K. A 2010
5th Circuit of Appeals quote ... "Krause's Tax
" A very interesting and telling story
about the man who Chairs our Lottery.
Part 8 Posted April 6, 2014
A Must Read For Texas Players.
Click graphic above ...


Unbelievable Response!
I Asked Governor Abbott ... When Lottery Players (Consumers)

Feel Wronged by The TLC, Who Can They Call For Help?

My letter to the Governor (5/21/15), Click here (pdf)
Governor's letter to me (5/26/15), Click here (pdf)
(NO, I did NOT alter Abbott's letter)
Gary Grief replies as requested by
Governor Abbott (5/29/15) Click here pdf
NEW - 6/13/15 My reply to Gary Grief's
letter, click here, pdf



Powerball's Obnoxiously
Harder To Win Now

Read all the fine details of the rule
change plus some tidbits they
don't want you to understand. New
game begins Click here


Texas' Fun 5's
Scratch Tickets

Fun 5's Scratch
Tickets Not Paying
Face Value of Winnings

See it for yourself. Includes
all details. Click here.

Fun 5's
Questions & Answers

Everything you have been
asking me is covered here!
Posted 9/21/14.
Click here.

Media Coverage - Fun 5's
This is NOT all of them!

ABC - KTRK TV Houston
NBC - KXAS - Dallas
Houston Chronicle
Dallas Morning News
Kens5 - San Antonio - TV.
Dallas Observer
Click 2 - Houston
Fox News
Fox 7 - Austin
Austin American

Good Morning America
(Can't find link)
Channel 11 TV -
Fort Worth - 10/21/14

Courthouse News

Houston Chronicle
Dallas Morning News,
Courthouse News,
Dallas Morning News,
Houston Chronicle,
4 Traders
Courthouse News
News Journal
WacoTrib (AP)


- Jilted Players -
Monopoly Millionaires Club

3 Separate Editorials -
Jan 5, 9, 14, 2015, Click here
NBC, Channel 5, DFW
- by Ken Kalthoff, click here
Past Monopoly Drawing
Results, Click here
Hoosier Lottery Losing Money
(So is Texas), Click here
Official Game Rule (As of
Oct 29, 2014)(word), click here
MMC Audience Selections
Procedures, click here (pdf)
Future participating
states - Click here (pdf)
Draw Sales by State,
Click here

Financial Re-cap of Draws,
Click here

(Watch here for additional
documents to be posted


- Meet Kelly Cripe -
The Spokesperson
For the TX Lottery

She's the person who decided
I didn't need to receive public
information that I pass along
to you every day!
Originally Posted 5/30/12
- Click here -
My response to Cripes
Cease & Desist Letter

Posted 4/21/13,

Click here

We've never seen Cripe
on TV - See the "test"
interview she did prior
to being hired. (A wmv
file - should open in
Windows Media Player
Posted June 23, 2014
Click here

About Texas Triple
Chance Three
Separate Postings

With this letter, I've done
all I can do - Posted
1/30/14. Click here

Is this game a true
lottery game? Is it
legal? Posted
1/20/14, Click here
"Secretly" Proposed.
Details New Game.
Posted 1/7/14,
Click here

Unbelievable Duplicate
Quick Picks

Louisiana players buys 4
tickets, all tickets have
the same numbers.
Very sad. (Nov 7, 2013 -
Updated Nov 12, 2013)
Click here.

Did Gary Grief Lead
The Commissioners
Believe All or Nothing
was born in Texas?

And about that highly
publicized "liability"
Posted 6/8/13.
Click here

Houston Chronicle
Exposes Mr. Grief's
Contractions Regarding
All or Nothing

Here's the answers to all
your questions and the
REAL truth (6/5/13)
Click here

Will Texas Honor
The Rule & The Face
Value of My Scratch

This letter was submitted
to Gary Grief - Director
of the TLC. I'm asking
that my winning tickets
be paid - Unbelievable
story and only the tip
of the iceberg regarding
Texas scratch tickets.
After you read the letter,
tell me - do you think
it's a winning ticket?
Should they pay me?
Posted 12/10/12.
Click here

Texas Player Buys
7 Quick Picks And
Receives 7 Identical

An Unbelievable
Story - Posted 3/15/12,
Click here

Lottery Terminals
Err - Here is
Absolute Proof

Posted 7/12/07 -
Don't let this happen to
you. Check your own
tickets! Click here
Very Interesting.

Editorial & Opinions by Dawn Nettles



11/09/15 - 10 PM - After you read my first Nov 9th story below, click here and see what has transpired since posting it. The Governor has spoken!

11/09/15- 1:30 PM - Just a couple of things for today. I've been so very busy this past week taking care of my legal duties - providing discovery information to the lawyers. I finally finished last night. Gawd, that was a huge job! Now I have one more time consuming chore then I'll be done for now. At least, that's what I think!

I wanted to follow up on my last posting - "Grief oversteps his boundaries" - posted Oct 26th - regarding a recent trip he took to Delaware to learn about sports betting and fantasy sports. This story made headlines nationwide - or maybe I should say, it seemed like that to me! The newspapers reported that Grief wouldn't speak to reporters and Ms. Kelly Cripe [TX Lottery Media Director] downplayed the situation by making it sound like they "are always considering new lottery games" in her "written response" to the media. That's hogwash in my humble opinion!

Anyway, I've obtained additional writings that I wanted to share with you regarding the recent trip to Delaware. I think these documents show a little more than ideas for new lottery games - I think they clearly show intent to expand gambling and what's worse, have it under the "umbrella of the Texas Lottery." Here's an example explaining why I think what I do ...

August 12, 2015 - Excerpts From Director Grief's Email to Director of Delaware Lottery

I wonder, who will instigate the discussion in the legislature? Is the TLC designing
a game and hoping to get approval to play it thereby expanding gambling in TX?

Traveling to TWO states? And TWO staff members specifically
tasked to research illegal gaming? WOW!

I wonder, is the TLC planning to have their website look like Montana's site.

Click here to read this one email, pdf

August 12, 2015 - Excerpt From Director of Delaware Lottery to Director Grief

How 'bout this ... the Delaware Lottery is responsible for administrative
and regulatory oversight of 3 casinos. Looks like the TLC has plans!

Click here to read the newly obtained writings including the ones above - a pdf

Was this trip consistent with the agency's legal authority?
Texas Government Code 660 deals with travel expenses. Section 660.003 addresses applicability. I'm not certain that the trip Mr. Grief and his staff took would fit into the applicability criteria since sports betting, fantasy sports and casino's are NOT legal in Texas.

"(e) A state agency may pay or reimburse a travel expense only if:

(1) the expense is reasonable and necessary;

(2) the purpose of the travel clearly involves official state business and is consistent with the agency's legal authority;

(3) the expense and the travel during which the expense is incurred comply with:

(A) this chapter;

(B) the rules adopted by the comptroller under this chapter; and

(C) the travel provisions of the General Appropriations Act; and"

The lottery's action is no different than the lottery purchasing new balls and drawing machines prior to a rule being proposed and/or adopted. Which is something they've done.

I wonder if the Governor and our elected officials would agree that this trip was "necessary?" I wonder if the state paid for this trip? (I have just requested travel expenses from Open Records for official confirmation.)

Next item - an old story written by Rev. Mark H. Creech in 2005 that I wanted to share with ya'll too. A reader sent me a link to it this week-end. After I read it, I thought to myself, "Gee, look what I could add to this story to bring it up to date!" <grin> After you read it, see if you think the same thing I did! This story made me realize just how long lotteries have used questionable business tactics. Click here to read Rev. Creech's story.

That's all for today.


10/26/15 - In the last several weeks, there have been a number of negative stories involving the Texas Lottery, Director Gary Grief, Chairman J. Winston Krause and former Governor Rick Perry. The Illinois Lottery has also been making negative headlines - they are NOT paying their $600 + winners. Same thing applies to the horrible stories involving a MUSL (Powerball) employee (Eddie Tipton) who rigged a drawing(s) proving computerized draws are NOT good for players and should be outlawed by all states.

What I'm going to do here is simply explain 4 different topics and post links to stories relating to the subject matter. These stories are an embarrassment to our great state as well as an embarrassment to all lotteries. They should also give you reason to have second thoughts about which games you may want to play in the future. I urge you to read these stories.

Topic 1 - Most Recent ... Director Grief oversteps his boundaries big time. Will he get away with it?
To summarize, Director Grief spent tax payer money traveling to Delaware to learn about "sports betting" - something NOT legal in Texas. The issue is NOT whether TX has casino's or internet gambling, rather, as a Public Servant of this state, Mr. Grief is bound to uphold the laws and honor the laws whether he agrees with them or not. The money the lottery brings in is NOT Mr. Grief's money to spend freely on fruitless travels on how to conduct illegal gaming. As Director of the Texas Lottery, Mr. Grief's primary concern should be to represent the "integrity" of the lottery with his actions. But his actions of late are questionable at best.

The Dallas Morning News broke this story Friday night (Oct 23, 2015) and it has gone nationwide. Here's just a few of the many stories regarding Grief's recent trip to Delaware ...

Dallas Morning News: "Texas Lottery looks at games based on sports betting, casino games." Click here
(When you read this story, be sure to notice that Media Director Kelly Cripe sent a written response to
the Reporter. It reads like Legal wrote it! I mention this now because I'll be making another comment about
Ms. Cripes response to another story regarding another subject.

Headlines in the Washington Times reads ..."Texas lottery leader reaches out to Delaware about expansion" Click here

Stiffs and Georges, (David McKee, Oct 23, 2015) "Texas lottery gives guv Grief; The Incredible Shrinking Casino" click here
(This one is really a cute story though I doubt those involved will like it!)

"Texas Lottery leader reaches out to Delaware about expansion" (Ran AP Story)
Channel 10, click here
El Paso Times, click here
Houston Chronicle, click here
NewsWest 9, click here, click here

Topic 2 ... Why would Rick Perry - personally - promote a company to the TX Lottery?
These stories deal with having powerful "connections" and who you know ... Bottom line, former Governor Rick Perry introduced Director Gary Grief and Chairman J. Winston Krause to a new company in Austin called GovWhiz. Besides an obvious "connection," why would Grief and Krause take their valuable time to meet a vendor who is NOT an approved state vendor? Hmm ... this is fishy .... One can't help but wonder who is going to get what if the TLC hires this vendor.

Here's just a few of the many stories on this subject ...

My Statesman, Oct 8, 2015 ... "Deep stealth: Rick Perry opening doors for firm seeking state business" - Complete details. Click here.
(In this story, notice how Ms. Kelly Cripe (TLC Media Director) verbally confirms that an inappropriate meeting actually occurred. According to the Statesman, Ms Cripe said, 'Former Gov. Rick Perry and Kathy Walt were introducing a vendor, GovWhiz,' " Kelly Cripe said. I wonder how long Ms. Cripe will remain employed after making this remark to the press. <grin> In later stories her remarks returned to "written statements" rather than verbal. Just an interesting observation.)

Lobby Watch ... Oct 12, 2015 - "Perry Promotes Stealth Contractor To His Lottery Commission Chief, Who Started a Stealth Perry Fund." Click here a pdf

MyStatesman headlines on Oct 9, 2015 read, "Rick Perry’s work for GovWhiz doesn’t pass ‘smell test,’ watchdogs say" ... Click here

Austin Business Journal - Oct 9, 2015 .... "Stealthy tech company solicits help from former Gov. Perry." Click here

Topic 3 - MUSL (Powerball) employee, Eddie Tipton, rigs drawing ...
These stories are about a MUSL (Powerball) Security employee, Eddie Tipton, who rigged a $14 million drawing that he won. The story has been in the press for at least the last year and is causing the lotteries much grief. - no pun intended - as it should. Lotteries can't afford bad press and there's certainly been a number of issues here lately to cause them serious problems. Especially here in TX.

The MUSL employee story shows the EXACT reason why we do not ever want computerized draws in Texas. Yet at one point, Grief tried to bring them in and did with the Megaplier drawing. Anyway, the temptation could be too great for a lottery to keep large sums of prize money and it IS too easy for a lottery's to cheat us with computerized draws. NO matter what they may try to say to combat this statement.

As it is, lotteries can already claim there is a winner when there may not have been one. And we, the players, would never know any better. Anyway, read the latest stories regarding Mr. Tipton rigging the system ....

American Statesman story ... "Iowa Lottery Scandal Spreads Into Texas" by - Eric Dexheimer - Oct 14, 2015. Click here

Iowa - KCCI Chanel 8, "Lottery security director fired after charges filed in Hot Lotto case" Click here

CBS News, "Former lottery official sentenced for trying to rig $14M win" Click here

USA Today, "Guilty verdict in lottery scam, but game safe, official says" click here
(I'm afraid I disagree with the "officials" remark in this story. If a game is computerized, it can be rigged. PERIOD. As for the remark that he was "caught" - that's a JOKE - in my humble opinion. The ticket was about to expire - I hardly call this "catching" him. Plus, Mr. Official, what's the explanation for Tipton's friends who won that are now under investigation? They got away with it, didn't they? How many other claims are there that will never be caught?)

The Inquisitr, "Eddie Tipton Guilty In Iowa Lottery Fraud Case, Pulled Off ‘Biggest Lottery Scam’ Ever" Click here

This story has gone world wide. Do a Google search on "Eddie Tipton" to read more.

Comment: The story NOT covered yet is the action the lotteries have taken to combat the negative press. I understand there's more to it than what has been told. I think they are keeping secrets! (Imagine that!)

Topic 4 - Illinois Lottery Won't Fund Prize Larger than $600
The Illinois Lottery is not paying their winners but they are still selling lottery tickets. WOW. Talk about unfair. One thing though is in the players favor - they ARE getting IOU's whereas in TX, our Monopoly 2nd Chance winners were denied their TRUE winnings (see Feb 11th posting). The Lottery told them to accept $10K, sign a legal form or get nothing at all. This is very bad. It never ceases to amaze me with what our state lottery actually gets away with.

Anyway, Illinois winners have sued the Illinois lottery. Here's just a few of the many stories that have gone world wide.

Chicago Tribune - "Illinois Lottery sued for not paying winnings due to state budget impasse" click here

CNBC - "Illinois Lottery winners receive IOU amid lack of budget" Click here

'Daily Show' Knocks Illinois For Shortchanging Lottery Winners During Budget Battle, Click here
(This video is REALLY funny but it does have bad language- there's your warning. It's actually priceless!)

Fox News, "Unlucky winners: Illinois lottery halts payouts of over $600 over state budget deadlock" click here

Wall Street Journal - "Illinois Lottery Winners Sue for Their Jackpots Amid Budget Impasse" click here

Again, do a Google Search to find all the stories. You know what I wonder, why would anyone continue to buy tickets? I think if players would simply stop purchasing lottery products, I'd bet a budget would pass sooner than later!

In concluding today's posting ....
I'd love to hear your comments on any of the 4 topics I've covered in this posting. Send me an email and I'll try to post for all to read. Click here.

About the Audited figures that mysteriously changed. I received a packet of information and a statement of charges for some of my requested information. Hopefully I should be able to review the documents I received so I can finish my story. So stay tuned - it really is coming!



10/07/15 - I think ya'll will all enjoy this posting ... it includes a funny on Gary Grief and Bon Jovi ... a serious note about reserve monies and Down's Syndrome and finally, you can all watch the the press conference given by the latest Powerball winner.

Hopefully, today's posting will be short because I really do have a lot of work to do!

I attended the Commission Meeting at the TLC on Monday, Oct 5. The Texas Lottery had posted another rule change for Powerball so I thought I'd better find out what was coming down this time. So that I don't keep you in suspense about the rule change, it doesn't have anything to do with the odds or how the game is played. Rather, it had to do with monies held in reserve - in otherwords, excess prize money they anticipate having and keeping.

When the item came up for discussion and after staff tried to explain - unsuccessfully to the Commissioners - Gary Grief, the Director, tried explaining it in layman terms. In his explanation, he told the Commissioners that "all players loved 'guaranteed' jackpots." Of course, I knew this was NOT true. The only people who love guaranteed jackpots are the folks running the lotteries.

Briefly, here's why - when they "guarantee" a jackpot, they purposely under-estimate larger jackpots. By "guaranteeing" an advertised amount, then a lottery is only obligated to pay the amount needed to invest to get a return of the amount advertised. The winners do NOT recieve all money in the jackpot prize pool from this "pari-mutuel" prize. (This is how TX cheated winners years ago.)

To see how Powerball jackpot winners were shortchanged, click here and scroll down to the chart where I show you how much was in the winners prize pool vs the amount they actually paid the winners.

The lotteries say - in their defense of this practice - that they also guarantee starting jackpots which sales do NOT support. I say - STOP doing it. Jackpots should be amounts supported by sales but lotteries think otherwise.

Anyway, back to guaranteed jackpots. Our new Commissioners have no idea that many years ago the TLC tried to change the Lotto Texas rule to "guarantee the advertised jackpot amount" too. Fortunately, the Commissioners refused to allow them to make this change. They refused because of the "cheated winners issue" and the "theory" that a lottery had to be completely transparent.

Guaranteeing jackpots is NOT in anyone's best interest. This is why California's games are all pari-mutuel games. Interestingly, the Powerball rule clearly states - repeatedly - that the jackpot prize shall be a pari-mutuel prize then it also states that sometimes it shall be guaranteed. I just wonder which is the case?

I pointed this out to the Commissioners yesterday after Gary had just told them Powerball was a "guaranteed" jackpot game. In essence, I made two comments that I promised I would put in writing for the new Commissioners to consider. I told them the rule they adopted last month was vague, conflicting and ambiguous. I was encouraged when I heard the Commissioners specifically say they wanted the lottery to be transparent.

I have NOT had the opportunity to read the proposed changes yet - what I know is that staff did NOT give the commissioners the entire rule to review. When I write my comment, I will share it with all of you.

On to the funny yet unbelievable experience I had at the Commission ...
I had to give you a little background information so you would understand the question I asked Gary Grief. When it was time to go into Executive Session, I found myself eye ball to eye ball with Gary. So I had the perfect opportunity to ask a question that I needed to know about the new Powerball game. I said, "Gary, can you tell me how Powerball will roll with these new changes?" Gary looked me eye ball to eye ball and said, "Dawn, have a nice day." and moved on. I laughed and said, "You really aren't going to answer my question, are you" and he kept on walking.

Is this an example of transparency? WOW - to think, he's a Public Servant treating a citizen of Texas this way and our tax money pays his salary.

I don't think Gary's words "Have a nice day" are his own words. I think he took them from Bon Jovi. Click here and enjoy!
(Huge, huge grin ... Listen to Bon Jovi's words - "When the world gets in my face, I say have a nice day")

An update to the heart warming video I showed in August - thanks for your comments of appreciation for posting it ... Here's another one ... A successful life in spite of many hardships ....
FYI - October is Down Syndrome awareness month. There's a Youth Center in downtown Garland (my town) who has just released another video showing a successful story of a Down Syndrome child who is now grown up. It is a heartwarming short video proving there is HOPE for all. Click here to watch it.

Powerball winners press conference ...
I think you will all want to see this interview with the latest Powerball winner. Click here.

In closing ...
I will be showing ya'll some very disturbing facts about audited figures being changed. I tried asking the Texas Lottery some questions but they have not answered them. Therefore, I made an open records request and am currently waiting on responsive documents to arrive. It appears the only media they wish to communicate with are those who will print what the Texas Lottery wants printed and that leaves me out. I always try to print the truth and the whole story.


8/25/15 - Just a short message - Only two comments for today.

A fellow lottery players sent me a link that I really wanted to share with all of you. It's a video and song on You Tube about a special child. I think everyone should watch it. It'll do your heart good even though it's a little sad - but it is reality. Click here. Enjoy.

Yesterday I posted the story about the new Powerball rule that the states will start playing on Oct 7, 2015. Texas will most likely adopt the new Powerball rule on Thursday, Aug 27 even though they should pull out of the game. But this is not a likely scenario because Executive Director Grief joined Powerball and pulled out of Mega Millions. For the life of me, I never could figure out why he did that. Of course, there's always speculation but I don't report on rumors and speculations.

Of course, now that I think about it, Mr. Grief was instrumental in creating and selling the Monopoly game too but he never hesitated in pulling out sooner that the other states. He really hurt the other states by doing that - in my humble opinion, of course. Plus he didn't seem to hesitate on reneging on honoring Monopoly's 2nd Chance Drawing prizes that players won. It's still too much for me to believe our state lottery can notify a player that he won a prize then when it comes time to pay up, refuse to pay what was actually won. Gawd ... that's horrible.

Anyway, I got carried away again. Ya'll watch the video and song on YouTube and be sure to read about the changes to Powerball. One thing about it, you will ALL understand why Powerball had to change the game. here


Just point and click on the story you want to read

Just point and click

The Lotto Report
Dawn Nettles
P. O. Box 495033
Garland, Texas 75049-5033
(972) 686-0660
(972) 681-1048 Fax

Email me


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