- 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 Total Sales Figures Broken Down by Game: FY 1992 - FY 2010 - Click here.
Originally Posted: April 22, 2002
Updated: May 17, 2011
- 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
|Online Ticket Sales||Scratch Ticket Sales||Total
|The TLC's fiscal year runs from
September 1 through August 31
These figures do NOT include monies
|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.|
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 TLCs 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 wasnt 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 whats 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!
Its unfortunate that players have
no idea that they have a winning ticket
they dont 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) 681-1048 (Fax)