The Hodgepodge Page
Texas Lottery News ... Read all about it here ...
Brought to you by
Check this page on a regular basis for the
latest news. All new writings will be on top.
Originally Created: March 16, 2000
Updated: Nov 9, 2015 - 1:30 PM
(Added link to news story at 10 PM)
- 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
Chicanery" 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 ...
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
Texas' Fun 5's
Fun 5's Scratch
Media Coverage - Fun 5's
- Jilted Players -
- Meet Kelly Cripe -
Will Texas Honor
Texas Player Buys
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
Click here to read this one email, pdf
August 12, 2015 - Excerpt From Director of Delaware Lottery to Director Grief
Was this trip consistent with the agency's legal authority?
"(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?
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 ...
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
MyStatesman headlines on Oct 9, 2015 read, "Rick Perrys work for GovWhiz doesnt pass smell test, watchdogs say" ... Click here
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.
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
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
In concluding today's posting ....
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 ...
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!
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 ....
Powerball winners press conference ...
In closing ...
8/25/15 - Just a short message - Only two comments for today.
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.
The Lotto Report
P. O. Box 495033
Garland, Texas 75049-5033
(972) 681-1048 Fax