Texas Lotto Report - IF You Win Lotto Texas ...

If You Win The Lotto Texas Jackpot ...
Here's What You Really Won

Originally Posted: Wednesday, June 16, 2004
Revised: Will update for each draw

If you should win Lotto Texas or Mega Millions,
then click here and start getting educated.

If You Won Lotto Texas on Aug 27, 2008
The TLC adopted a new rule effective April 23, 2006. It
guarantees that the winner receives the greater of either
40.47% of "roll" sales OR the amount needed to invest
that will give a return of the amount advertised - called the
"investment cost." (CVO) The highest amount shown below is
how much they SHOULD invest for you (if annual pay) - If CVO,
should pay you - less taxes (25%). The 08/27/08 jackpot
is advertised at $30 million and is the 25th drawing in the roll.

Est From Roll Sales: $19,427,609
Est Cost To Fund Jackpot: $18,828,845
Taking the greater of the two figures above ...
After Minimum Taxes (CVO): Est $14,570,706

Based on TX rate/factor of: 1.5933%
Average 3 Bids (other lotteries): 1.612%
(Will owe more in taxes at end of year.)

Actual sales figures to come Thursday, Aug 28, 2008
Draw Sales (08/27/08): Est $2,100,000
Allocated to pay the jackpot winner from
just the Aug 27th draw: Est $849,870
("Draw Sales" - Represents how many
tickets were sold for the 08/27/08 draw.
To guarantee a winner, they need to sell
the vast majority of the 25.8 million
combinations and then it is still ify.)

"Roll" Sales (25th draw): Est $48,004,963
"Roll" sales is how much they've sold for all draws
since the June 4, 2008 draw. The winners share
of sales is carried forward until there is a winner
and is kept in the "prize pool." The winner is
entitled to receive at least 40.47% of roll sales
which essentially means, all that is in the
prize pool. More info below ...

Re-Cap May 31, 2008 Lotto Win
One winning ticket - Advertised @ $17M
was sold in San Antonio - Self Picked Ticket - CVO
"Roll" Sales (14 draws) were: $25,314,555
Rate/Factor on 6/02/08: 1.626386%
Gross Winnings: $10,452,626
Net Winnings (Minimum Tax 25%): $7,839,467
(The TLC will pay the investment cost as it's
greater than the amount in the prize pool.)
Short to fund this win: <$207,826>
Winner: Eddie Dreamkowski - San Antonio
Collected $10.4 Million on 6/5/08

April 12, 2008 Drawing
Two winning tickets - Advertised @ $7M -
were sold in Seguin & Cleveland.
Both Self Pick Tickets & Both Chose Annual Pay
"Roll" Sales (4 draws): $6,919,815
Rate/Factor on 4/14/08: 1.575369%
Cost to fund $7M: $4,443,404 (Amount to invest)
Short to fund jackpot based on sales: <$1,642,954>
Loss to state this roll - includes low tier prizes: <$1,708,467>
(Will take shortages from reserve)
Winners: To Come

March 29, 2008 Drawing
One winning ticket - Advertised @ $13M
was sold in Pharr - Quick Pick - CVO
Rate/Factor on March 31, 2008: 1.5038%
"Roll" Sales (10 draws) were: $18,553,826
Allocated for the jackpot: $7,508,733
Cost to Fund $13M: $8,644,766
Short to fund jackpot from sales: <$1,136,033>
Loss To State This Roll (Includes Low Tier Prizes): <$1,172,910>
(Will take the shortage from reserve)
Net Winnings (Minimum Tax Deduction 25%): $6,483,574
Winner: Collected 4/22/08 - Martinez-Sanchez & Associates, Ltd.,
General Partner: Martinez-Sanchez

Feb 23, 2008 Drawing
Two winning tickets - Advertised @ $28M -
were sold in Addison & Houston.
Both Quick Picks & Both Chose Annual Pay
"Roll" Sales (22 draws): $44,493,267
Rate/Factor on 2/25/08: 1.612944%
Gross Winnings: $18,006,425 (Amount to invest)
Winners: The Tolbert Family Trust, Bobby Joe Tolbert.
Houston. Collected 3/13/08 - Annual payments of
$560K with an initial payment of $883,430.98
John M. Hale, Addison, will receive a total of
$14,323,430.98 BEFORE taxes for the next 25 years.

To See A Breakdown of All Wins Since 2000, Click Here.

Why Aren't Lotto Jackpots Increasing More?
See it for yourself - updated 04/05/07. Click here.

Schools

The schools do NOT see ADDITIONAL money as a result of lottery sales.
Whatever the lottery contributes to the School Foundation Fund just lessens the
amount the state has to take from the General Revenue Fund to place into the
school fund. Lottery money is not IN ADDITION to the budgeted amounts.
See San Antonio's WOAI TV newscast regarding lottery money for
education, click here then click on "Watch this story."

Important Tidbits

The amount you see advertised, "$15 Million" represents the approximate amount one would collect AFTER the money you actually won was invested for 25 years. The "$15 Million" includes the interest earned from your actual winnings which is 40.47% of roll sales. It's just like being a commissioned sales person.

If you chose Cash Value Option, the amount shown above is the exact amount you have coming ... less taxes. I hope you marked CVO on your playslip.

If you chose Annual Pay, the amount shown above is how much the TLC should invest for you minus your first payment. The Texas Lottery buys securities that are backed by the US government called "zero's/strips." You are "suppose" to receive ALL of the earnings from your investment. At the time you collect your prize in Austin, before signing ANY papers, I strongly urge you to request copies of the actual investments made on your behalf. Those papers will include your "CUSIP" numbers and then you will be able to track the earnings through the U. S. Treasury. You should also obtain the rate to verify the return. How to do this is shown on the same page with the zero's/strips and CUSIP numbers - it's the last section on the page.

Advise to Players/Winners

1. Do NOT buy lottery tickets online. They are NOT legal. There are some sites that are selling Texas tickets for $2 apiece. Don’t fall prey to this for SEVERAL reasons ... #1 - You don’t know for sure that the site will really buy you a ticket - they could just pocket your money; #2 - Lottery tickets sell for $1 apiece and its against the law to pay more than that for a ticket - if you were to win - the TLC would not validate [pay] the ticket; #3 - only licensed retailers can make a profit - of .05 cents - for selling lottery tickets; #4 - It is against the law to use a credit card for purchasing lottery products.

2. Mark your playslip CVO (cash value option) - Do NOT choose Annual Pay. Then there will be no doubt that you will receive all that you really won which is in essence, 40.47% of total sales in the ROLL - Update - In Nov 2005, Texas changed its rule. They now guarantee the greater of either the "investment cost" or the amount in the prize pool.

Unlike most other states, Texas does not allow players to choose which way they want to receive their winnings after they won - Texas makes players choose annual pay or cash value option at the time the ticket is purchased. The TLC claims it has something to do with the IRS. But a quick call to the IRS asking which option players should take will result in the answer being CASH VALUE OPTION.

3. Should you actually win - don’t do anything for 30 days - calm down first. In the meantime, hire a lawyer and an accountant to help you understand investments and finance. Don’t tell anyone that you’ve won and buy excessive insurance. Put your signed winning ticket in a bank box - borrow maybe $50,000 to just blow - get it out of your system.