- Texas Lottery -

The unclaimed prize Monies ...
The Players Share of Sales That Goes Elsewhere ... Including
the
General Revenue Fund To Be Spent However The State Wants!



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See FY sales figures broken down by game:
FY 1992 to present -
Click here.


Originally Posted: April 22, 2002
Updated: July 18, 2014

- The Law -
Portions of Lottery Money Now Goes Into The General Revenue Fund ...

On June 10, 2003, Governor Perry signed House Bill 2292 which says ....
(3) all prize money [referring to the unclaimed prize money] subject to this section
and not appropriated from the Texas Department of Health state-owned
multicategorical teaching hospital account [stating it "MAY" be a
maximum $20 million
] or not appropriated to the Health and Human
Services Commission [stating it "MAY" be a maximum $5 million] for the
purpose specified in Subdivision (2) "SHALL" be deposited in the general
revenue fund and may be appropriated for any purpose
as determined by the legislature ...

Well, so much for lottery monies going to education!

Unclaimed Prize Monies

Fiscal
Year
Unclaimed
Online

Games
Unclaimed
Scratch

Games
Total
Unclaimed
Online
Sales
Scratch
Ticket
Sales
Total Sales
FY93 $2,987,427 -0- $2,987,427 $767,755,147 $1,088,335,606 $1,856,090,753
FY94 $15,276,495 $21,083,725 $36,360,220 $1,307,028,229 $1,453,188,881 $2,760,217,110
FY95 $27,772,805 $8,661,070 $36,433,875 $1,319,906,016 $1,716,611,292 $3,036,517,308
FY96 $23,306,587 $15,325,729 $38,632,316 $1,312,240,668 $2,120,068,740 $3,432,309,408
FY97 $24,053,876 $21,258,272 $45,312,148 $1,387,732,911 $2,357,736,212 $3,745,469,123
FY98 $23,689,922 $18,261,436 $41,951,358 $1,288,142,122 $1,801,889,502 $3,090,031,624
FY99 $23,933,733 $24,166,487 $48,100,220 $1,167,807,815 $1,403,791,802 $2,571,599,617
FY00 $18,762,627 $16,754,544 $35,517,171 $993,472,895 $1,663,817,588 $2,657,290,483
FY01 $20,508,312 $18,430,749 $38,939,061 $1,109,573,573 $1,715,724,489 $2,825,298,062
FY02 $26,514,476 $43,103,908 $69,618,383 $1,035,059,328 $1,931,202,931 $2,966,262,259
FY03 $28,956,964 $38,036,305 $66,993,269 $1,000,377,224 $2,214,793,137 $3,125,170,361
FY04 $19,726,363 $21,855,074 $41,581,437 $1,161,262,618 $2,307,569,390 $3,468,832,009
FY05 $21,525,042 $39,239,097 $60,764,139 $957,942,581 $2,701,788,009 $3,659,730,590
FY06 $18,533,958 $35,688,630 $54,222,588 $913,286,434 $2,861,399,128 $3,774,685,562
FY07 $17,111,320 $41,836,067 $58,947,387 $916,682,873 $2,857,495,929 $3,774,178,802
FY08 $17,953,555 $36,181,191 $54,134,746 $887,641,859 $2,783,836,095 $3,671,477,953
FY09 $13,717,814 $49,014,682 $62,732,496 $928,581,415 $2,791,532,297 $3,720,113,711
FY10 $20,684,238 $45,907,552 $66,591,791 $977,396,264 $2,760,973,223 $3,738,369,487
FY11 $19,201,009 $34,574,624 $53,775,633 $969,003,455 $2,842,266,680 $3,811,270,135
FY12 $16,660,349 $35,083,153 $51,743,502 $1,104,674,559 $3,086,141,354 $4,190,815,913
FY13 $17,751,963 $42,118,177 $59,870,140 $1,153,692,743 $3,222,593,714 $4,376,286,4574
FY14
*Sales
Thru

7/13/14
$?? $?? $?? *$977,722,244 *$2,796,316,885 *$3,774,039,129
Totals $418,628,836 $606,580,472 $1,025,209,308 *$23,637,396,414 *$51,007,577,344 *$74,644,973,758
Unclaimed
Online

Games
Unclaimed
Scratch

Games
Total
Unclaimed
Online Ticket Sales Scratch Ticket Sales Total Sales
(Approx)

* Unaudited Figures

The TLC's fiscal year runs from
September 1 through August 31

These figures do NOT include monies
that are being held for claims that are
"pending." Which is another story in itself!

As you look at these sales figures, remember, this is "total sales."
The players share is roughly 50% from online sales for the
most part - the state takes their share right off the top
plus they keep the unclaimed prize monies. The return on
the scratch tickets is a little bit higher though.

See FY sales figures broken down by game:
FY 1992 to present -
Click here.

Each online drawing is a separate event, whether it be Lotto Texas, Cash 5 or
Texas 2 Step. Because these games are “pari-mutuel” - unlike Pick3 - the prize
amounts are figured in the same exact way as a commissioned sales person
figures his earnings - he gets a percentage of sales.

Using Lotto Texas as an example, for each drawing they have total
sales - just like when a salesperson makes one sale. From the total sales,
the TLC “claims” they return 52% of sales to the players, called the “prize pool,”
and the TLC’s commission from sales is 48% - PERIOD.

Now, out of the 52% of sales that “belongs” to the players, there are 8 prizes
that can be won so each prize category - the 5 + 1, 5 + 0, 4 + 1, 4 + 0, 3 + 1,
3 + 0, 2 + 1, 1 + 1 receives a certain percentage of the 52%.
This is called “allocating” the funds.

But the truth is, the TLC actually allocates nine (9) categories because
they put 2% in what they call the “reserve fund.” Originally, the “reserve fund”
was intended to be used in case there wasn’t enough money allocated to pay the
"guaranteed" prizes. Makes perfect sense except they allocate too much money
for the "guaranteed prizes” which results in excess money not only in the reserve
fund, but also in the prize pools.

This same principal applies to the Texas 2 Step game. But the Cash 5 game,
with it's $2 guaranteed prizes, is different. It has no reserve fund because they take
the amount needed to pay the $2 prizes straight off the top then the balance in the
prize pool is divided pari-mutually among the other winners. A fair game regarding
the division of the monies except they ruined Cash 5 when they added those $2 prizes.

At any rate, besides the simple little fact that they “over allocate” the guaranteed prizes,
they also keep what’s in the reserve fund. Several years ago the Reserve Fund had
soooo much money in it that the legislators made the TLC transfer the funds to the state.

Now comes the “unclaimed prize fund” which is still part of the “prize pool” - the
percentage they “claim” they return to players. It consists of money that “winners”
never collected or couldn't collect. When you look at these figures, ask yourself how
this many people could fail to collect their winnings.

There are a number of reasons for these huge sums - scratch games are too
complicated for the players to readily see that they won and the terminals are
failing to show online and scratch tickets as winning tickets when they are in fact,
winners. Often times - the store clerks don't allow the terminals enough time
to respond when checking a ticket and will run the ticket through a second time.
This causes the print-out to show the ticket is not a winner even though it may
have been. We also have a problem with what's known in the industry as
"ghost transactions" and "misprints" which is another story in itself!

It’s unfortunate that players have no idea that they have a winning ticket because
they don’t check their own tickets but rather depend on the terminals and store
clerks to tell them if they have a winning ticket. I can't stress this point enough ...
CHECK YOUR OWN TICKETS! You have no idea how many store clerks
steal players winnings too - sad but true.

The TLC "claims" and "advertises" that they return a given percentage of
sales to the players AND the rules state what percentage
SHALL be returned.
After looking at the above figures, I wonder what percentage the players really
get back? And how would these figures be reduced if the lottery terminals were
100% accurate in reading winning tickets and retailers were forbidden to check tickets?

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