Texas Lottery's Proposed Game
- Texas Triple Chance - 401.322 -

- A Casino "Keno" Game In Almost Every Aspect -

I wonder ...
Wouldn't a Constitutional Amendment
be needed for the TX Lottery to
conduct this game in Texas?


brought to you by
The Lotto Report

Originally Posted: Jan 20, 2014 - 7 PM
Revised: Feb 10, 2014 - Added link to Senator Deuell letter

Texas Triple Chance - 3 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

Read Dallas Morning News
Story About Texas Triple Chance

Appeared Feb 12, 2014 - Click here


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

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


Texas Triple Chance
Read My Letter To The Attorney General

With the writing of this letter, I've done all I can
do to protect the People of Texas. It is now out
of my hands. Posted 1/30/14. Click here


- Editorial -
Opinions expressed here are those of

Dawn Nettles - Publisher of The Lotto Report

A Special Note
Before I get started, let me tell you that when I saw the proposed rule for
Texas Triple Chance, I was extremely upset. I knew what the Texas Lottery
was up to and what their motive was, but I was really taken back at the boldness
shown in several aspects of this rule and game. While I addressed much of it in my
first posting, I continued to feel that I was missing a point of some kind and failed
to convey all that I should have. Then when I posted the 2nd posting, I still
felt I was missing something significant. It was just a gut feeling.

Anyway, after much ado and research, I think I have found
what I failed to convey in my first two postings which is
significant information. I am going to try to explain what is
seriously wrong. We need legislative assistance and an
AG Opinion as to the legality of the Texas Lottery offering
and running such a game.

I firmly believe Texas Triple Chance is a game that is
prohibited by law to be played in Texas.

As such, I firmly believe that the Texas Lottery, G-Tech and
lobbyists will aggressively try to convince both lawmakers and the
Commissioners that this game is not prohibited gaming and that I am
just a crazy blonde who hates lotteries. Which is really not true. I
may well be crazy <grin> but I voted for a lottery - I just expected to
have an honest one who wasn't out to rob all citizens for the sake of
a dollar. Anyway, it is for this reason that I have included some
information that may baffle you but it is information I feel strongly
lawmakers need to understand & know. It should help them overcome
objections I feel they will hear from the lottery, G-Tech and lobbyists.


Why Did I Liken Texas Triple Chance To Keno?
To the best of my knowledge, there are only 3 games played where numbers
on balls are drawn from drawing machines or computers and players pick
or have paper cards with numbers in hopes of winning a jackpot. These 3
games have likenesses but distinct differences that completely sets
them apart.

The games I'm referencing are known as Bingo, Lottery "Online"
Jackpot Draw Games (lotto) & Keno. They have different
names so let me show you what sets them apart since
all games involve "drawing numbers."

Below, I have charted the differences so you can easily see the
differences in each game. But in a nutshell, the answer as to why I call
Texas Triple Chance a "Keno" game is two-fold: 1) the nature of
the betting and preset prizes; & 2) the matrix of the game.

Nature of Betting
In state run lottery jackpot games, the states takes its share of
money up front and pays out the balance of sales to the players.
The lottery operator could care less what the outcome of the game is
because they've collected their money up front. The balance of sales
will be paid out in prizes - even if it's eventually. Jackpot money is
always carried forward until there is a winner.

In Keno, however, the game operator either wins or loses each and
every wager. Unlike lotteries, Keno has preset prize amounts that
are not based on sales. The game operator keeps what isn't won
and if no jackpot winner, that money is his to keep. Therefore
and quite obviously, the operator absolutely cares about
the outcome of each draw.

In Texas Triple Chance, as you will see charted below,
the Texas Lottery has become a participant in the
game which constitutes casino style gaming and is
no longer considered a "true" lottery game.
In Texas, this kind of wager is prohibited.

The Matrix of the Game
In Lottery draw games - they draw the same amount of numbers that
players are required to select
in the game. If the game requires you
to pick 6 numbers, then they will draw 6 numbers. Example matrix:
6/54 - means players pick 6 numbers from a pool of 54 numbers.

In Keno, players choose between 3 to10 numbers but more numbers
are drawn than what the player selected
. Example matrix: 7/55/10
means players pick 7 numbers from a pool of 55 numbers but they
draw 10 numbers. The matrix of most Keno games is 10/80/20
though a game operator can offer whatever matrix he wants.

Now let's compare the play style as proposed
for Texas Triple Chance,
to traditional
state run lottery draw games and to Casino
Style Keno games. Then you decide if you
think the Texas Lottery has over
stepped their boundaries.

Play Style of Game - Game Features Bingo State

Keno TX
Balls and machines or computers are used to draw numbers
that players either select or have on a card
Numbers continue to be drawn until there is a winner X
The game operator draws the same amount of numbers as the
player was required to select from a pool of so many numbers
Known as a Matrix - ie; 6/54, 5/37, 4/10, 4/35 + 1/35, 5/56 + 1/45
The player is required to select up to so many numbers from a pool of so many
numbers but the game operator draws more numbers than the player was
required to select. Known as "Matrix" - ie; 7/55/10, 10/80/20, etc
The "jackpot" is won if ALL of the players
selected or needed numbers are drawn
If more than one winner, the jackpot
amount is divided equally by all winners
The advertised jackpot amount is paid in full to
each winner no matter how many winners there are
(Referencing Las Vegas Casino's)
** An amount is advertised (Example: $100,000) as the "jackpot amount" but IF
more than 10 players win, then each winner will receive less than they expected to win
(This could be construed as deceptive advertising as well)
** X
A set percentage of sales is allocated and divided by players who successfully
match some of the numbers drawn - known as pari-mutuel low tier payouts.
(The percentage is designated in the game rule)
All low tier prizes are fixed, preset prize amounts set by the
game operator irregardless of total sales for the drawing
The game operator has no interest or stake in the
outcome of the game as he takes a set percentage off the
total amount pooled as his income then pays out the balance
The game operator DOES have an interest or stake in the
outcome of the game as he pays all winners and suffers all losses
If the "jackpot" is not won, then the share allocated for a jackpot winner
is carried forward and eventually paid out to a winner
If the "jackpot" is not won, then the game operator keeps the jackpot money X X
The game operator has a chance to retain all wagers, but also risks a loss
(The player and the game operator are the only two involved in this game)
Prizes are calculated and distributed from the amount paid in,
and based on a chance event to all who win.

**State Lotteries who do run Keno games will also reduce
the jackpot amount should there be more than "??" number of winners.

Play Style of Game - Game Features

Bingo State

Keno Texas

In Summary

The proposed Texas Triple Chance rule is not a true "lottery" game because
the payout to the winners does not depend on how much money was wagered
by others. Because of the fixed payouts, the Texas Lottery has an interest in the
outcome of each draw which makes them a participant - either a winner or
loser - of the game.

Further, the Texas lottery will pay all winners and will suffer all losses
ensuring they are a participant just as surely as those who placed
wagers on the outcome of the draw. State lotteries do NOT
operate this way but Casino's do.

Always remember, lottery games are guaranteed NOT to lose because
lotteries take their money right off the top and pay out the balance.

In the proposed game, this is NOT the case.

Each of these games have variations in play style and variations
in how many times per day or week you can play them. In
Bingo, players maybe be looking for a straight line, a letter X,
a picture frame, or 4 corners. These are still "Bingo"
games and one can find a game from morning til
the wee morning hours. Finally, they draw
numbers until someone wins the jackpot

In jackpot lottery games, players may be selecting
4 numbers and a bonus number to win, or 5 numbers to
win, or 5 numbers plus a bonus number to win. These are all
considered jackpot lotto games and in all lottery jackpot games, the
game operator draws the same amount of numbers as the player
is required to pick
. The lottery operator always takes his money off
the top and pays out the balance. Lotteries are guaranteed success
for this very reason.

Two ways lottery (lotto) jackpot money is treated
1) In lotto games, jackpot prize money is either carried forward for
whoever does eventually win; or 2) if there is no jackpot winner, the
jackpot money may be paid out to the low tier winners for that drawing.
Lotto jackpot prize money is a set percentage allocated from sales
and in lotto games, it is guaranteed to be paid out eventually.

In Keno, players may decide how many numbers he wants to select,
he can select his wager amount and there's various game features.
Such as multipliers, "way" tickets, spot bets, group numbers,
consecutive draws. Keno might be played every 4 minutes, or every
5 minutes, 24/7, or 20 hours per day. Keno can be played whenever
and however many times the game operator wants to offer the game.
The number of draws per day does not define the game as "Keno"
though it is generally played quite often as it is a HUGE money
maker for game operators. Just like instant games (scratch tickets)
are for lotteries. Scratch tickets can also be bought every
5 minutes 24/7 but they've never been called Keno!

Keno "jackpot" money is kept by the game operator if there is
no winner
- it's not carried forward and it is not paid out eventually.
Most of the time, jackpot money is "fictional" - it's just an advertising
gimmick - it doesn't really exist because it's rarely ever won by anyone.

It is my opinion that advertising a huge jackpot amount where a
lottery is relatively certain will be RARELY won due to the
odds of the game and the shortage of play should be outlawed.


Does the Executive Director Have Too Much Authority?
Texas is proposing to play this new games 6 nights a week EXCEPT
the proposed rule states that the Executive Director "may issue further
directives for the conduct of "Texas Triple Chance" that are consistent
with this rule
" Hey folks, this means if he want to take the game
to every 5 minutes he can once it's in the mix.


No Press Releases Issued On Texas Triple Chance
The Texas Lottery has kept this game a top secret for a very long time.
During a TLC budget presentation many months ago, staff gave no game
details but asked for money for new balls & machines and workers to
run the game. It was approved without game details. It appears to be
another done deal.

Imagine, they've proposed this rule and the Texas Lottery is suppose
to make certain that players are aware of it. Yet they have
failed to issue a Press Releases for the media.
Hmmm ...


Can I Explain WHY The Lottery Wants This Game
Yes. Online sales are declining and have been declining for quite some time now.
As we players believe, they have caused the decline due to their game changes.
At any rate, they believe that if they play "jackpot" games where they can
advertise large jackpot amounts then they will increase online sales. The
Catch 22 is that they need to make sure the jackpot will rarely be won
just like in All or Nothing. They want games where they make more than
50% of sales to offset the decline and this game will deliver consumer losers.
This is how they plan to increase online sales - and I can assure you, it is
not a traditional lottery game and should be prohibited by state law.


I Wonder ...
You know, what I really wonder is why did the lottery
pursue a game like this knowing it was in a gray area.
I'm quite certain they know what's transpired in Illinois.

Is it because they got away with All or Nothing?

Anyway, FYI - in 2008, Chairman Cox asked for an AG
Opinion prior to proposing to sell Raffle tickets. This time,
Mr. Grief took it upon himself to by-pass the Commissioners
- in all aspects - and moved forward without approval from
either the Commissioners or an AG Opinion.

Sure hope the Commissioners take heed
to this very bold move.


Updates - News

Since First Posting of Proposed Rule on Jan 7, 2014
I think you should all know that the Texas Lottery has decided
to have another Comment Hearing. If you will recall, in my first posting
I told you how they scheduled a comment hearing 4 days after players
had the opportunity to simply read the proposed rule. They have
now scheduled a second hearing for Monday, Jan 27 at 10 am
at lottery headquarters.

Governor Appointed 5th Commissioner to the Lottery
I find it very interesting that - as I write this on Jan 20, the
Texas Lottery has made no mention of its newest
Commissioner. No press releases - shoot, they haven't
even added him to their website.

At any rate ... here's what I posted about him
on Jan 15, 2014:

Commissioner John W Townes III
Retired Senior VP USAA
Retired US Navy (Rear Admiral)
Granbury, TX
Appointed Jan 15 2014
Term Expires: Feb 1, 2015


First comment posted for Texas Triple Chance, Click here


- 4 Ways To Submit Public Comment -
Tell them what you think!

1) Mailed to: Deanne Rienstra
Assistant General Counsel
Texas Lottery Commission
P.O. Box 16630
Austin, Texas 78761-6630
2) OR by fax at (512) 344-5189
3) OR by email: legal.input@lottery.state.tx.us
4) OR Attend Comment hearing on Monday, Jan 27, 2014,
10 AM (Lottery headquarters in Austin)


Based on the facts presented here, IF you believe
there is any merit to what I've written, I strongly urge you
to contact your state legislator and request that he/she ask
for an AG Opinion regarding the offering of this game.


I would be interested in hearing what you think about this game too.
Email me - lottoreport@lottoreport.com


Texas Triple Chance
Read My Letter To The Attorney General

With the writing of this letter, I've done all I can
do to protect the People of Texas. It is now out
of my hands. Posted 1/30/14. Click here

First posting for Texas Triple Chance
Click here


All Texas Games - Sales Pages
Pick3 & Daily 4 - Sales and payouts, click here
Lotto Texas - Prizes & sales, click here
Texas 2 Step - Prizes & sales, click here
Cash 5 - Prize amounts & sales, click here
Mega Millions - Lottery Sales by the draw, click here
Mega Millions - Lottery Sales by State, click here
Lotto Texas - Lottery Sales by the draw, click here
Powerball - Sales by State, click here
Powerball - Lottery Sales by the draw, click here


Texas Lotto Report
(All About the Texas Lottery)

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