Houston Chronicle Exposes Gary Griefs Contradictions Regarding All or Nothing - Shame On Mr. Grief ...

 

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Houston Chronicle & Cindy George

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Shame on Gary Grief For His
Untrue Statements/Contradictions

All About All or Nothing

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Originally Posted: June 5, 2013 - 3:30 p.m.
Revised: June 6, 2013 - 1 AM -

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

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

All or Nothing Sales Suspended 6/3/13
Read Texas Lottery's press release and
my comments ... Click here



The following story ran in the Houston Chronicle on Wednesday, June 5, 2013.
My (Dawn Nettles) editorial - comments and opinions - are in blue and below the story.

Lottery Shuts Down 'All or Nothing' Game

"All or Nothing," the newest Texas Lottery game, is kaput. For now, at least.

The Texas Lottery Commission "temporarily suspended" sales just before noon on Monday. The game was halted after GTECH, the state's lottery operator, notified the commission of a design flaw. (The "design flaw" is lack of ticket sales vs the guaranteed prize amounts - the only way to fix this is to lower the prize amounts to offset lack of income. We all know the more tickets sold, the more losers you have. When sales fail to support a game, the state loses. Look at Lotto Texas - a perfect example. Also, why would G-Tech need to tell the lottery that the game is not profitable. Can the Finance Division, Ms Pyka, not figure this out? See charts below.)

"It was brought to our attention that there is a game design issue with 'All or Nothing' and while there are more than 2 million possible number combinations, some of our players were gravitating to a smaller subset of number combinations and we saw the potential of unusually high prize payouts," commission spokeswoman Kelly Cripe said Tuesday. (Interesting - the playslips offer players the opportunity to play: 1) all odd numbers; 2) all even numbers; 3) numbers 1-12 and finally 4) numbers 13-24. So players saw through this - they knew better - and chose to play 9 to 10 numbers from one of these options then picked other numbers from the other group of numbers.)

She denied that the game was stopped because of too many winners or because too much money had been won. (She's not privy to this information - she's reporting what she's told to report even when it may not be true not to mention the fact that she understands little about the games - see the charts below!)

"We took this step as a precautionary measure to protect the state from unexpected financial liability," Cripe said. "The game has performed as intended and the prizes awarded to players are what we expected." (Be sure to see charts below ... "Unexpected financial liability" means lack of sales/revenue to cover costs. I'm surprised the TLC took action - it took years of losses to address Lotto Texas and they still haven't dealt with TX 2 Step. And if it's [All or Nothing] doing as expected - why suspend sales? Why do ya'll make comments that don't add up logically?)

Despite the game's temporary demise, all prizes on winning tickets will be honored by the lottery.

The shutdown is a stunning contradiction of comments last month from Texas Lottery Executive Director Gary Grief who praised "All or Nothing" as the lottery industry's "best draw game innovation in the last several years." (I've heard these "contradictions" (lies) for years and they make me sick. They talk "huge success of games" then turn around and change games because of the failures. Mr Grief overstepped his ethical boundaries and has finally been caught. I suspect strongly, someone made the Texas Lottery shut the game down now rather than to wait for a rule change. BE SURE TO SEE CHART BELOW. I'd like to know why his long standing assistant [Mary Beth] really resigned.) (Excerpts at bottom of page from the Commission Meeting, just scroll down )

The game, which began on Sept. 9, is relatively simple. Players pick 12 numbers from 1 to 24. Each ticket is $2.

There are four drawings daily - morning, day, evening and night - Monday through Saturday.

The way to win the largest payout - $250,000 - is to hit all dozen numbers or none at all. The hourglass prize scheme offers nothing to those who choose 5, 6, or 7 correct numbers. The smallest reward, $2, is won by choosing 4 or 8 matching numbers. Those with 3 or 9 correct digits win $10. Ten or two correct? Fifty bucks. There's $500 for those who pick just one correct number or 11.

Lottery officials are considering limits on the number of tickets that can be bought per drawing for each combination of 12 numbers. "The practice of setting liability limits is common in the lottery industry for games that offer guaranteed prizes," a news release said. (NO, this will be opposed by the People of Texas although if things go like they usually do, the lottery will totally ignore the people of Texas. After all, the Sunset Bill has not been signed yet and is not in effect.)

In its first eight months, the game generated sales of $62.5 million and paid $36.7 million - or 59 percent of sales - in prizes. Of the leftover $25.8 million, an estimated $19.7 million - or roughly 32 percent - went to the Foundation School Fund, which supports public education in Texas. (As you can see, this only leaves $6.1 million to pay all costs for the game. Not possible. See charts below for a complete breakdown of the expenses - profit/loss ... Also, do know the division of money is suppose to be ... from 100% of sales .... 50% is suppose to be returned to the players in way of prizes; 38% goes to the School Foundation Fund; 7% goes to the TLC for administrative costs and finally 5% is paid out to retailers for their commissions)

Putting "All or Nothing" on ice challenges Grief's recent accolades. According to a transcript of the May 7 commission meeting, he said the game "has proven to be extremely successful" as were its four daily draws. (This is an outright lie - and totally unacceptable. Folks - this is "testimony" - he is under oath -Mr Grief is speaking to his bosses. What happens to most people when they lie or mislead their bosses? ONE more time, see charts below)

The sales and revenue for that game have exceeded our wildest expectations," he said. "We have already matched the full year sales projection." (The language in the proposed then adopted rule was not clear with regards to profits - there is a distinct difference between "sales figures" and the "bottom line" which is something that is NEVER discussed. See charts below to determine if this statement is true or false - you will see that it too, is a false statement).

Language in rule ... Added after original story was posted

Longtime Texas Lottery watchdog Dawn Nettles of Garland said she believes "All or Nothing" was pulled because of sluggish sales."

"This is a bad game," she said. "They haven't lost money, per se, but their bottom line on this game is not what it should be."

Nettles, who publishes The Lotto Report online newsletter, agreed that "All of Nothing" was poorly designed.

"There are really not enough numbers in the game," she said. "The school fund should see 38 percent. By offering all these guaranteed prizes, the state is losing."

End Houston Chronicle story ....


- All or Nothing -
Showing it like a Checkbook

Description

Expenses Balance
Sept 2012 - June 3, 2013
NET Sales
- $62,641,426
Players Won $36,726,938 -
School Fund (38%) $23,803,738 -
Retailers (5%) $3,132,070 -
Administrative Costs (7%) $4,384,899 -

Bottom Line

= <$5,406,229>

 

OR Figure it this way ...
Either way the Texas Lottery loses
and so did the schools

- All or Nothing -
Showing it like a Checkbook

Description

Expenses Balance
Sept 2012 - June 3, 2013
NET Sales
- $62,641,426
Players Won $36,726,938 -
School Fund (32%) $20,045,253 -
Retailers (5%) $3,132,070 -
Administrative Costs (7%) $4,384,899 -
Bottom Line = <$1,647,744>

What you see in these charts is - clearly - the schools were cheated
and the Texas Lottery did NOT receive their 7%. It appears to me they
would have been short to cover their costs - which includes G-Tech,
start up costs, advertising, including all the folks involved to
produce 4 draws per day plus much, much more.

Interesting Tidbits - All or Nothing
72% of
Tickets Sold

Were Losers!
Winning/Break
Even Tickets
Losing Tickets
As of 6/4/13 6,986,972 24,708,623

Tickets - $2 apiece. So ....
62,641,426 divided by 2 = 31,320,708 tickets sold.
Based on 916 drawings (thru 6/3/13) means
they sold an average of 34,193 tickets per draw.

And they THINK this is successful?

 

And to think, they need G-Tech to tell them about this "flaw"???
They should call me, I could have told them about it for FREE!


- ATTENTION Texas Lottery -
$2 per ticket is too much money and it would behoove you to
accept the things you cannot change which is - for the
most part, 1) it is the same people over and over that
play these games and 2) players are NOT going to spend
more money, they are going to split their dollars among
however many games you offer them.

With regard to going to 4 draws per day on Pick3 and Daily 4, right
now I am taking tons of calls from irate players - if you proceed with the
plan to play these games 4 time per day, the state will LOSE.

Lastly, you should all know that during next weeks Commission Meeting,
the Texas Lottery plans to propose changes for Mega Millions as well
as All or Nothing. Sales for Mega Millions are sliding too!


Inserted the following excerpts
after original story was posted ...

Excerpts From May 7, 2013 Commission Meeting Transcript

MS PYKA: The new game, All or Nothing, at the bottom of the slide, is at $242,000 per day, which is a cumulative sales value of $56 million. And we've already exceeded our year to date -- our fiscal year -- fiscal projection on that game through this point in the fiscal year, and we still have 17 weeks to go in the fiscal year.

What's the bottom line - who cares
how much you sell, what is the profit
to the state and are you covering your costs?

MR GRIEF: ...... I want to recap for you some special events and some discussions that have occurred at the last two conferences that I attended .................

.... The second panel that I participated in during last week's conference was a discussion on daily draw games, like Pick 3 and Daily 4. That discussion focused on how lotteries could keep those games relevant and viable in today's market. And I will tell you that during that discussion, the Texas Lottery All or Nothing game became the star of that entire discussion. All or Nothing, quite frankly, is the best draw game innovation in the last several years in the lottery industry. The game itself has attributes that have never before been utilized in a day draw game.

Many months ago, I challenged Michael Anger and his team to come up with a new draw game and not feel shackled by the traditional parameters that were placed on daily draw games; and that is, limiting yourself to two drawings a day or limiting yourself to a 50 percent payout. And Michael went back, and he worked very closely with Robert Tirloni and the rest of our products staff, as well as our GTECH marketing team, and that's how All or Nothing was born.

The sales and revenue for that game have exceeded our wildest expectations. We have already matched the full year sales projection just -- how many months into the year are we?

MS. PYKA: We're only 35 weeks.

MR. GRIEF: 35 weeks into the fiscal year. So that game has proven to be extremely successful for us. The four draws a day has proven to be a home run for us as well. And you're going to -- you've already voted to approve a rule that's going to change our Daily 4 and Pick 3 games to four draws a day. So that tells you how much additional revenue we believe we can achieve by going to four draws a day.

Both of those opening panels that I served on caused my colleagues to have many questions of the Texas team that was there over the next several days. All of those questions focused on: What's your secret? What are you doing right in Texas?

A game that fails to pay all of its own expenses and
produce 38% of sales for the schools is not a successful
game. It is my educated opinion the game is a complete
failure and I'm embarrassed that Gary would go
across the country and brag about something that
is NOT as wonderful as it was portrayed. Players
hate this game. And, if it were as great as Gary
says it is, then tell us, why were sales suspended?

Also, a game that only sells an average of 34,193
tickets per draw is not a popular game when
there's a population of 25 million in the state.

Opinions by Dawn Nettles

-

 

 



Related Links

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

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

All or Nothing Sales Suspended 6/3/13
Read Texas Lottery's press release and
my comments ... Click here

All or Nothing - Finances - Sales & Payouts
Click here


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