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Continued ....

- 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 miilion> 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 ...



- Awesome -
A 3 Part Investigative
Story - Four Multi
Million Dollar Wins
Then 28 Low Tier Claims
by Joan Ginther, Then A
Close Friend Claims
More Prizes.
Theories on how she
beat the odds to win
multi millions 4 times.

"Lottery’s ‘luckiest woman’
bet flabbergasting sums
on scratch-offs
." This
3 part story began July 1, 2014.
The reporter, Peter Mucha,, spent hundreds of
hours researching this Texas
winner and researching theories
on how she to beat the odds!
Parts 1 - 3
Links to all three parts, Click here's - More Coverage
How Peter Mucha's lottery
series evolved, click here
Ginther tops many
multiple winners, click here
Ginther known as big
time ticket buyer, click here
16 schemes likely not used
by Ginther, Click here
Just how outrageous
were the odds, Click here
Tx stores that still sell the
$7.5 Million Fortune
scratch ticket (a $50 ticket)
Click here (pdf)

- 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

CBS Dallas
KTVT/Channel 11
Mireya Villarreal

- 4 Bingo Stories -
2 Illegal Gambling;
2 Cheating Charities
WOW, what a
series to watch!
Ask yourself, why
would the Texas
Lottery ignore
"gaming devices"
that pay players
in cash or in
lottery tickets?
Click here for
links to watch
stories that
aired on ...
April 29, 2014,
May 5, 2014,
May 9, 2014
& May 14, 2014

Senator Deuell
Requests an AG
Does Texas
Triple Chance Qualify
As a "Lottery?"

Read Senator Deuell's
letter, Click here
(a pdf) 02/10/14
My letter to the AG -
Click here
(a pdf) 01/28/14

Dallas Morning
News Story About
Texas Triple Chance

Appeared Feb 12, 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


5/30/14 - After posting the deceptive advertising story on May 21,2014,
(shown below) the Texas Lottery took no action to correct their advertising.
In fact, on the monitors in the stores, they actually increased the number
of winners to "11.1 million winners" for All or Nothing. This is a blatant lie.

I know the TLC monitors my site daily and I'm certain they saw my posting.
They also know there has NOT been 11 million All or Nothing "winners"
since inception of the game. Yet they are still falsely promoting this figure.

So yesterday, May 29th, I did mail an official complaint to the AG.

Click here to read my complaint letter - pd.

Guess we'll finally see if anyone holds them accountable for
ANYTHING - but especially truth in advertising.

As for Part 9 of my story, my husband is slow in his recovery
but is progressing. But he is taking most of my time. I do hope
to resume my normal schedule within the next week or so.
Part 9 is coming and it is quite telling. It's basically
already written - I just have to put the final touches on it!


5/21/14 - (Revised 9:30 P.M.) The Texas Lottery currently has this deceptive banner
posted on their website and it's displayed on monitors at retail locations. Many thanks
to those of you who made me aware they were at it again ...

Lies, Lies, Lies - False, False, False ...
Called Deceptive Advertising

(As seen on the Texas Lottery website and on the monitors in the stores.
Website directions ... From their homepage, click left arrow on left
of "$33.5 Million" - it's the 3 of 3 banner

The facts are .... As of May 20, 2014 at 11 pm ....

True winning tickets since inception of the game - 1,970,783
(Of the 1.9 million winning tickets, only 42 were jackpot
winning tickets and only 5397 were $500 winning tickets.

Break even tickets - defined as player pays $2 and he gets his $2 back - 9,107,882

Losing tickets since inception - 39,147,017

Under NO circumstances have there been 11 million "winners."

The Texas Lottery was instructed NOT to count break even tickets as winning tickets.
So much for that.

I keep the stats on this game current at all times - click here to review them.

I will be filing an official complaint. Consumers should not be misled or lied
to by our state lottery. This needs to be pulled or corrected immediately.


Added clarification to May 9 entry on May 11, 2014 ...

Just scroll down to beige table or click here


5/9/14 - All players -Lottery & Bingo - have been betrayed by the
Texas Lottery Commission ... 4 amazing stories you should all read ...

On the BINGO side of today's posting -
Bingo Players and Charities have been betrayed
.... Finally the dirt has
been exposed/revealed ... In just the past ten days, major news stories have
surfaced. You will finally see - firsthand - what I've been trying to tell you
for years. Please, take them one at a time and read or watch them ....
You will be shocked ... then ashamed of our state run lottery.
There is no way we can trust them in light of these developments.

Here are links to each of the 4 stories ... (Statements in italics
are remarks by Dawn Nettles)

CBS Dallas, KTVT/Channel 11 - "I Team Discovers Charity
Bingo Doesn’t Always Benefit Charities.
" Unbelievable findings.
What an award winning investigative story this is
! by Mireya Villarreal.
April 29, 2014: Click here

CBS Dallas, KTVT Channel 11 Update (May 5, 2014) ....Click here
by Mireya Villarreal.
This story clearly shows our Lottery Commission is truly
an embarrassment for the People of Texas. The very idea
that the Texas Lottery is investigating itself is a joke in itself.
The TLC never finds any wrongdoing with TLC staff. But they
love to prosecute people outside for wrong doing unless that
person has "connections" of some kind.

Texans For Public Justice - Lobby Watch Report - Incredible
story titled, "Company Tied To Illegal Slots Seeks State Loophole,
K & B Sales Petitions Lottery Chair with Skeletons in His Closet"
Shows pure corruption and it's really true! Believe me.
Please notice too they are referring - in their headline - to
J Winston Krause who is still the Chairman of the TLC.
Sad by true. We deserve to have people running our lottery
who does not have conflicts of interest and who is truthful.

May 5, 2014 - Click here (pdf)

Ft. Worth Star Telegram: By Anna Tinsley
"Wanted: New Bingo Director" Click here
Fantastic story! Explains it all extremely well.
Everyone should be able to understand this one!

On the lottery side of today's posting -
For the past year, I've been working on what has become a 10 part series. I took one
incident - a complaint filed with the State Auditor which alleged (but was proven true)
missing money with no action taken against any lottery staff members. So far you have
seen how the Texas Lottery investigates and reports their findings. In short - deceptively.

Things have been exposed that should have resulted in reprimands and/or
firings - but - so far - there have been no firings, no reprimands and no resignations.

So that you understand protocol ...
The Executive Director (Gary Grief) is directly responsible for all actions
of HIS staff. You've seen where there's been money missing, they failed to
reconcile the prize payment checking account, the lottery kept prize money and
the Executive Director failed to report fraud as required by Gov Code 321.022 ...
Among many other things ......

Directors are responsible for all work that is to be done in their
departments. If policies and procedures are not complied with,
the Directors are directly responsible and generally will resign
when unfavorable things are caught and exposed. A good
example is the resignation of Sandra Joseph - the Bingo Director.

The Chairman of the Lottery Commission - J Winston Krause -
is responsible for seeing that staff is held accountable and staff
works to ensure public trust for the lottery and Bingo. Problem is,
Mr. Krause was caught evading taxes. He claimed a <$2.7 million> loss
that never happened. How can we trust him to run our lottery or Bingo?

There is little trust afforded to the TLC now.

It is my opinion that ... we - lottery players and bingo players - have been
betrayed by deceit, conflicts of interests, unfair games of chance and lack
of personal integrity (Code of Ethics) by the 3 folks listed above AND
Governor Perry. The Governor has not insisted that Mr. Krause resign
in light of Mr. Krause's obvious conflicts of interest, tax evasion
and Krauses failure to disclose his IRS lawsuit on his appointment
application. I can only assume that the Governor must need
Mr. Krauses services as explained in the Lobby Watch Report
more than he needs public trust for the TLC.

Because the Bingo stories clearly shows special interest groups,
vendors agenda's and a failure to help the charities... I want to make
sure you understand the lottery's motive with regards to increasing
gross sales from year to year.

I think we've all heard Mr. Grief brag and boast EVERY single solitary year
about how "sales" have increased. Each year I gag when I read Mr. Grief's
press release regarding fiscal sales BECAUSE I know that transfers to the state
is stagnant or down. Yet higher sales SHOULD reflect more revenue to the state.

But here's the real motive in "increasing sales" - higher sales means more
revenue for ONE MAIN ENTITY - the lottery operator - good ole G-Tech.

You see, G-Tech receives a set percentage of gross sales - so the higher the sales,
the more money G-Tech makes. The state has not reaped any proportionate
benefits from the increased sales. Rather, I believe the states share has declined.

I wonder .... who does Mr. Grief work for ... G-Tech or the state of Texas?
As one reader wrote, if Mr. Grief was in Trump's board room, he would
be fired yesterday.

(Interestingly, FY13 sales were very late in being released - they
were due out in mid Sept but were not released until November.
Guess this is another failure of the Office of the Controller!

Now before reading on .... I hope you've read and
watch the above stories because next are my comments ...

My past experience and knowledge leads me to believe that the wrong
person usually takes the fall at the Texas Lottery to protect the "real" guilty
parties. Which means to me that the Bingo problem is most likely not fixed and
will never be fixed. Consider how long Ms. Joseph was the Bingo Director
vs the length of time the management companies were in existence with
the Texas Lottery. Was she forced out?

I hope you noticed how badly the Texas Lottery treated the CBS reporter. I'd really like
for someone to explain why we need to pay Kelly Cripe - the Media Relations Director -
$100K+ - when Grief will not allow her to speak directly to a reporter. Reporters have
attempted to tell you what I'm telling you outright - but they print, "in a written statement,
Ms. Cripe said ....
" But according to the reporter, Ms. Cripe hasn't even responded
- See 05/11/14 clarification below - and I can certainly believe that!!!!!! <huge grin>

Though I will say, Cripe fits Mr. Griefs criteria to a tee - he demands all YES people. Guess
I'd take $100K+ per year to simply send a legally written response by email to a reporter.
Prediction ... when Cripe leaves the Texas Lottery she will find out she is not qualified to be a
"Media Director." This is because few, if any, reporters know her to trust her. She won't be
able to pick up the phone and get a reporter to call her back - get evens are hell. She's
going to find out the hard way. Wonder if she'll get permission from the legislature to
sue the lottery for damages? <grin>

When it comes time to vote in Nov, I really do hope you've noticed which legislators
received how much money from special interest groups/businesses. Some of those
legislators have turned a cheek to what's really going on behind closed doors at the
lottery. I don't think it's OK to have a game that goes 20, 30, 40 draws without
a winner ... I honestly think this would be considered a scam. They are selling
you a product under false pretenses - they purposely chose the 6/54 matrix to
prevent people from winning. They wanted the long rolls - they went overboard.

Money is evil. It appears not all folks have to be truthful in filing their tax returns and
some lucky folks received lighter sentences and fines for breaking laws. It appears
that political donations miraculously saved some folks from suffering - both
financially and in receiving jail time! (Shown in the Lobby Watch Report)

In closing, Part 9 really is coming. My husband had major back surgery and
was in the hospital for nearly two weeks - I just brought him home Wednesday.
We did not plan on a lengthy hospital stay so I'm way behind on everything
including posting the above story/latest news.

Inserted 5/11/14

- Clarification to 5/9/14 Entry -

Above I said, "But according to the reporter,
Ms. Cripe hasn't even responded and I can
certainly believe that!!!!!! <huge grin>
" In
all fairness to Ms. Cripe, I would like
to clarify my statement.

I should have made it clear that the TV
reporter, Mireya Villarreal, was referring to
the BINGO Director not responding to emails
after making the trip to Austin - not Ms. Cripe.

Do understand why I said it like I did
though. IF I send an email to Gary
Grief, he sends it to Ms Cripe and
she responds for him with whatever
he or Legal says to say. I would
suspect that the BINGO Director
does the same thing though I can't
be positive. It was for this reason
that I "blamed" Cripe for not
responding - I assumed she was
told to reply or not to reply by
Legal or the Bingo Director for
messages/emails that may have been
sent directly to the Bingo Director.

Mireya Villarreal made it very clear
in her story that she had been in
communications with the Texas Lottery
but received "few answers." Additionally,
she said the TLC refused to "talk about
the issues on camera
" which I
find most unusual as TV reporters
are supposed to be catered to by the
Media Director and currently,
Kelly Cripe holds the position.

FYI - I use to do TV and newspaper
interviews at the TLC and Steve Levine,
Keith Elkins and/or Bobby Heith
|would give interviews either
before or after me. This is THE job
of a "Media Director" yet we don't see
Ms. Cripe on TV and reporters rarely talk
to or get answers from Cripe in person.

I've never seen or heard Ms. Cripe
answering lottery or bingo questions
on TV or radio - have you?

Why is this?
Why the change in policy with Ms. Cripe?

If anyone thought I was saying the TLC
does not respond to reporters, that
would NOT be correct. They do
respond - they just don't answer
things they don't want known and
often times gives reporters the
run-around. Additionally,
records show, requests
for on-camera or live (radio)
interviews have been denied if
Mr. Grief was not available to do it.
Weird huh - this is NOT his job!

- Excerpts - Mireya Villarreal -
April 29th - Dallas KTVT - Channel 11 -

"After weeks of phone calls and emails with the
Texas Lottery Commission, and very few answers, we drove down to Austin to speak
with Sandra Joseph, the Charitable Bingo Director for the state.

Investigative Reporter Mireya Villarreal approached Joseph during a Texas Lottery Commission hearing, asking to speak with her once things wrapped up, “We want to make sure we don’t leave without talking to you.”

Joseph said she’d come talk with us after the meeting. But once the meeting ended, Joseph was nowhere to be found. She had slipped out a backdoor and since then has yet to return our emails about the situation.

(Comment by Dawn Nettles - I suspect Ms. Joseph
was really instructed to leave by the TLC's attorney's
and the Commissioners

May 5th - Dallas KTVT - Channel 11 -

"When CBS 11 I-Team Reporter Mireya Villarreal tried to get answers from the state, they refused to talk about the issues on camera.

After nearly a week of exchanging emails and phone calls a representative for the Texas Lottery Commission, and getting very few answers, the I-Team drove down to Austin specifically to talk with Joseph about Charity Bingo. She said she’d talk with our crew after her meeting was over; however, once things wrapped up, Joseph slipped out a back door."


End May 9, 2014 Posting

---------------------------------------- here


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