- Re-cap of Events -
See May 6th entry for the players latest move
to overturn the new rule - we're not through fighting.

January 28, 2003 - TLC orders 2 new drawing machines from Garron Lottery Products - $83,150. (Order #362-3-0571) (TLC bought new machines in June 2000 for the first time since inception - 1992 - it's not time for new ones)

January 31, 2003 - Commissioners approve new Lotto Texas rule for "proposal." Must be published in Texas Register before 30 day comment period can begin.

Feb 10, 2003 - Interoffice Memorandum from Jim Sigler to Gary Grief, Mike Pitcock and Sharon Krabe (TLC) - Memo is regarding ordering new balls. 1st sentence, last paragraph says, "The matrix change is scheduled to occur on May 7, 2003." (The comment period hasn't even began yet.)

Feb 11, 2003 - TLC orders new balls from Garron Lottery Products. Ball numbers 40, 41, 42, 43, 44 to add to old Cash 5 balls. 5 sets. $5,375. (Order # 362-3-0642)

Feb 12, 2003 - Bid or proposal solicitation package posted to purchase new drawing machines. (How 'bout that - they order the machines in January then post a notice to receive bids in Feb!)

Feb 14, 2003- Proposed rule appears in Texas Register. Official comment period begins.

Feb 28, 2003 - Bid awarded for new machines to Garron Lottery Products ($83,150) (Shoot, they've already been bought!)
Agency procurement (purchasing) law for purchases over $25,000

TLC orders 18,575 copies of 6 x 4 inch "Lotto Texas Terminal Topper" promotional piece for new game - the rule hasn't been adopted.

Sunday, March 16, 2003, comment period over. The TLC received 6000+ comments from players. Counsel refused to extend comment period over til Monday.

March 21, 2003 - TLC orders 2,000,000 "How to Play" brochures. Rule not adopted yet!

March 23, 24, 25, 2003 - I began faxing sample comments to your legislators so they could speak up before the rule was adopted. I sent between 8 to 20 letters to all 31 Senators, the Governor, Lt. Governor, Speaker of the House and managed to cover about 50 to 60 state reps. Only one, Senator Gallegos, wrote a letter of opposition prior to the adoption of this rule. And each legislator received comment from ONLY his own constituents (voters).

March 27, 2003, During the commissioners meeting, the commissioners adopted the new Lotto Texas rule. Game to start May 7.

March 28, 2003, we (players) began contacting our state reps for help in overturning the rule. The state provides thousands of locations for voting, highly publicize it, and provide a "form" to complete. In the end, whoever gets the most votes, wins the election.

Via my web site, I provided a location and a form that players "could" complete if they wanted to be heard on this issue and they were given the opportunity to say anything else they wanted. Same procedures used for voting.

In this case, for a substantial rule change, the state did not highly publicize the rule change ... nor did they utilize their FREE resources to alert players that a change was on the horizon ... nor did they provide an easy way for players voices to be heard. So, I did.

April 1, 2003, TLC issues letter to the Legislators informing them that the commissioners adopted the new Lotto Texas rule. Content of letter included the "sales pitch" as to why the new game was so great and that the state would see a revenue increase of $56.4 million in fiscal 2004.

Best part of the letter are these two sentences though ... (1) "With the commission's actions, we are NOW taking steps to implement the new rule" and (2) "If we can assist in answering any questions from you or your constituents, please do not hesitate to call."

The first sentence "implicates" that they were just beginning to "implement the new rule" when the truth is, documents prove they began "implementing the new rule" as early as Jan 28, 2003 which was BEFORE it was EVER "approved to propose." The second sentence was the TLC's way of controlling what kind of response they wanted the legislators to give you. So this is WHY ya'll got the responses that you did from your legislators.

Also, this is the day the legislators began calling the TLC for answers because of your messages.

April 10, 2003, I finally told ya'll that the TLC bought new equipment and printed promo literature one month prior to adopting the rule so we sent new messages to our state reps asking "why is there a comment period and was the adoption of the rule in compliance with the laws." (§2001.029 (c) A state agency SHALL consider fully all written and oral submissions about a proposed rule. )

To my knowledge, nobody got a "direct answer" to these questions from their reps. If you did, please send it to me. Even I haven't gotten an answer and I've spoken with several legislators but none could or would answer the questions.

April 18, 2003, legislators received thousands of comments from ya'll. So now we begin making Open Records requests to obtain copies of any and all letters the TLC received from members of the Texas Legislature. We needed to know if our legislators did anything for us - both before the rule was adopted and after it was adopted.

April 21, 2003 - TLC issues another letter to all legislators. It said in part, "It is estimated that the new game will generate more than $50 million in additional revenue during the first fiscal year of sales," it said, accentuating the positive. "I understand you may be receiving "inquiries" from constituents regarding this new game rule." The letter acknowledged the negative.

It took Rep. Dan Ellis, D-Livingston, one day to respond. "You are absolutely correct," Ellis wrote. "I am receiving a huge volume of correspondence from my constituents, none of which I would call `inquiries,' regarding the rule change, and none of it has been positive or complimentary to me, the Lottery Commission or the state of Texas. In light of the strong objections I am receiving, I am going to have to strongly object to this rule change."

April 22, 2003, TLC begins sending documents responsive to your requests. They sent one letter that they had received from Senator Gallegos (Harris County) of opposition.

April 23, 2003, TLC issues a press release that says in part, "When we have a $4 million to $5 million jackpot, sales are $7 million to $8 million for the week," Clowe said, "We're looking at the possibility of a $7 million to $8 million sales day. That tells me that players are voting with their purchases and it is heavily weighted towards bigger jackpots."

April 26, 2003, it appears our legislators are deaf or don't care. So, we turn to our retailers for help. We want our game back and they are the ones that can do it for us - especially if they know how we feel. We must show them that the rule is not good for them either. They are the backbone of the Texas Lottery and they're in the private sector!

April 28, 2003, the TLC sends retraction stating they had "inadvertently omitted" 6 letters that should have been included with your open records requests. (Shew ... am I ever glad I advised you to make the open records request. Otherwise, I could have gotten into trouble for reporting that only one legislator had taken action!)

April 29, 2003, letter to retailers completely revised for several reasons. The content of this NEW letter was requested (I told you, I do listen and in this case, I decided to go along with them), a better look for printing purposes and it now says "3 legislators" wrote instead of "one." We DO want to be accurate in our statements and we do want to help the retailers - after all, the TLC claims that the new rule will increase revenues for the retailers - the raise they want - when the bottom line is that their "raise" will amount to an overall average of $347 per year per store. This is less than $1 per day and this is NOT what they had in mind considering the work they do for the state. They are already on our side but they NEED your letters to act.

Technical info - Without the rule change, the TLC projects Lotto Texas sales would be $466,000,000 for fiscal 2004 - With the rule change, they project sales would be $584,000,000 for fiscal 2004. That's an increase of $118,000,000. Retailers receive 5%. That would be 5.9 million - there are 17,000 retailers - that averages $347 per store for fiscal 2004.

I'm requesting that you to do two things RIGHT now. First, send a letter to your retailer (here's a link).

Second, contact the Governor. Either type a short note opposing the new game OR just send him a copy of the letter you sent to your retailer. Do include your name and address, and fax it to the Governors office. It's time NOW to address him with your feelings on this new game. You can also fax a copy of the letter you sent your retailer to your state reps.

The Governor's fax number is: (512) 463-1849. Should you choose to mail it: Office of the Governor, P.O. Box 12428, Austin, Texas 78711-2428.

If you do these TWO things, I honestly believe we'll get our game back. We are also issuing a press release to the press so I want to make certain that everybody concerned has already heard from "the people" prior to it going out and this includes the Governor.

FYI - If ya'll would CALL your reps and insist on a verbal answer to the question regarding the legality of the adopted rule, (i.e., the purchase of new equipment one month prior to the adoption and how was there ever "intent" to consider comment) - the TLC would receive more letters from the legislators too!And, I still think you deserve an answer to this question so you should continue til you get the answer.

May 2, 2003 - TLC issues press release about new game starting. Last sentence of release says, "Additionally, the names of media-friendly Lottery retail outlets for on-location stores can be obtained by calling the contact persons listed at the top of this new release." I called and they wouldn't provide "statewide" information to me. Said they didn't have it all "yet" and they couldn't or wouldn't fax me the list. The retailers named for the Dallas area were the independents with the exception of a couple of 7-Eleven stores. Imagine why they added this on the press release?!

May 3, 2003 - Channel 4 in Dallas does story on new game. Story included my questioning the procedures used to adopt this rule. They filmed the documents supporting my claims but did not show them to the public.

May 5, 2003 - I provided documents to the press confirming that the TLC did not adopt this new rule in compliance with state law. The press does know that lawmakers knew about our objections PRIOR to the rules adoption but did nothing to help the people of Texas. I have provided additional information as requested by the press and will continue to do so. KVUE - Austin TV did a big story on the events leading to the rule change. We've worked hard for this media coverage! (Link at the top of this page)

May 6, 2003 - Right now my fear is that our "lawmakers" (legislators) will use the excuse that "investigations" are under way and still try to tell us that there is nothing they can do. Which would be a bunch of baloney. All they have to do is write ONE letter to the TLC and request that the new rule be voided, rescinded or reversed because their constituents do not want it.

IF our legislators pull this stunt to allow the game to proceed, so the state can make more money at our expense, then I will post another feedback form so you can ask your legislator to write that letter. We will not stop until the rule is reversed - the people spoke and we deserve to be heard. It is OUR game.

I will also begin the tedious task this week of sending your letters to the retailers. In 5 days, I received 1800 letters and equally as many, if not more, emails telling me that you were delivering your own letters for me. I appreciate that more than you will ever know.

May 7, 2003 - I write all state legislators - one more time - requesting that they write ONE letter, on behalf of their constituents, specifically opposing the new Lotto rule and to ask the Commissioners to rescind, reverse or void the rule. Read my letter.

May 11, 2003 - I began printing and faxing your new messages to the Governor. This will take time due to the volume. Also, the Governor's fax machine must have ran out of paper or memory. This task I'll do as time permits and I still have all the comments for the retailers to do.

Sales for the May 10th NEW Lotto Texas game are breaking all time record lows. Seems like folks really are speaking with their dollars.

May 13, 2003 - The missing legislators may cause the scheduled May 15th House Investigating Hearing to be postponed. I spoke with 3 major retailers today. I explained specifically why they should oppose the new rule and provided additional documentation as requested. They agreed with me on all issues. More to come regarding the retailers.

May 15, 2003 - I learned at 5 pm last night the House hearing was still on for today. The TLC took a scolding from the legislators but there was no discussion of any type of punishment. They called on me to speak but told me that they were in a hurry to get to the floor by 10 am. I was not given the time needed to tell them what they "truly" needed to know - they told me that would accept my comments in writing.

Hopefully, they will receive a full written report next week which should make the hair on their heads stand straight up - that is - if they have a care in the world about the people of Texas and the way the TLC "really" operates. We will know once and for all if our currently elected officials place any value on consumer protection or any value to state agencies abiding by the laws of this state. I think every one of you should watch the hearing. It's two hours long but very interesting. There a link at the top of this page.

I did ask all 4 legislators to write ONE letter to the TLC stating opposition to the new rule and ask that it be rescinded on behalf of their constituents. They appeared "shocked" and said they would consider it. Soon we will make another open records request to find out how many more letters the TLC has received from our legislators.

Lotto Texas sales for last night were record breaking lows given the jackpot amount.

May 18, 2003 - Sales for the $17 million jackpot very, very low. There have been $9 million jackpots recently that brought in greater sales. I received a letter from the AG yesterday regarding an open records request I had made last December and he ruled in my favor - partially. The TLC has been told that they have to release the player research material - something they don't want out. The last time I saw one of these reports the TLC threw out findings because there was a knowledgeable player in the group that they claimed influenced the group negatively. He didn't agree with making the game harder to win ... imagine that.

May 19, 2003 - I called and left word for Diane Morris, TLC Open Records counsel, to inquire about the costs of receiving the player research or to ask if they were going to take this matter to court.

May 21, 2003 - Just called Diane Morris again. They said she would call me back in 10 minutes but it's been an hour and a half now. Still don't know if they are going to release the player research materials. How 'bout this - they use taxpayers money for marketing studies to sell a product to consumers but they don't want to release the findings about selling the product. Or maybe they are changing the findings. Either way, the Freedom of Information act gives the people the right to obtain such documents and there is no way I would ever believe that this kind of report would be a security breach - other than maybe, self incrimination! The study was done by Ispos Reid - imagine a marketing firm that wouldn't want additional work based on other studies ... yet they wrote the AG in hopes he would keep the report private.

I'm almost finished with my report regarding the TLC and their activities. I will be sending it to the Attorney General, State Auditors Office, District Attorney in Travis County, the Governor, and the House Investigating Committee. It includes rule changes - the impact and 'true' intent - cheating Lotto Texas winners - tactics used to keep more than the states share of sales - questionable documents used for adopting rules - hiding transcripts - false advertising - open records violations and out and out lies. All issues DOCUMENTED - this is very important for you to know - it's all documented.

Again I say - I am IN FAVOR of a lottery - it can be good for a chosen few and is an excellent resource for the state to make money. But if we're going to have a game such as a lottery - with already extreme odds against winning - then we - the people of Texas - want a fair shake in dealing the cards.You must always remember - IF the TLC had competition - do you actually think they would remain a profitable business? States were given a monopoly as a way to protect the people from such unscrupulous tactics - yet - the states are doing exactly what the Feds were afraid the private sector would do if permitted to run a lottery - gouge and entice the people for the sake of increasing profits for the business itself.

June 5, 2003 - I will be sending a message out to everybody by email today or tomorrow bringing everybody up to date. But to quickly address some of your questions - (1) Yes, I've made an Open Records request to obtain any and all letters the TLC has received from the legislators requesting the Lotto Texas rule be reversed (2) Yes, Lotto Texas sales are WAY off (3) To pull off a successful boycott, we would have to have hundreds of us meet in one location to protest and invite the media to get the word out to all (4) Yes, I am preparing for us to boycott - I'm just waiting for the right time and a few pending answers first (5) Whatever you do, do not buy any lotto tickets no matter how high the pot gets - you won't win and this way your "state taxes" won't increase and you'll have a little extra money so you CAN pay your increased local taxes and higher fines or fees!

To quickly address your questions and comments: YES, in time we will file complaints with the DA and AG - though I understand some of you have already done this and that's good. YES, we will find out about the letters and phone calls the TLC receives from the retailers. And YES, we'll see the letters the TLC sent out to the legislative body. We've got to go one step at a time. Right now, we must concentrate on writing the retailers and the Governor and most importantly, we need the press to pick up our story. Ya'll could prompt that too if you take the initiative.

Finally, let me say this - they can undo anything that they do - it is NEVER to late. If we continue in our quest, they will have no choice but to reverse this new rule. You will have to trust me and have a little faith.

Player's rights can be defended only when enough players speak up.

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