Texas Lottery will guarantee advertised jackpots

Nov 1, 2005, 11:14 am (7 comments)

Texas Lottery

The Texas Lottery Commission approved guaranteed Lotto Texas jackpots Monday, a measure designed to win back player confidence and avoid more inflated prize estimates by the nation's third-largest lottery.

The lottery was rocked this summer by revelations that former Executive Director Reagan Greer signed off on advertising jackpots that were higher than ticket sales could support. Greer resigned in July after Commissioner Tom Clowe told legislators that he thought the executive director had deceived the public.

As expected, the commission approved the guaranteed jackpot measure by a 2-0 vote Monday.

The measure means grand prize winners will be paid either the advertised jackpot or the jackpot based on sales, whichever is greater.

The Lotto Texas jackpot starts at $4 million and traditionally grows by at least $1 million each time no tickets match all five numbers and a bonus ball.

Under the old rule, the commission could use its reserve fund to pay a grand prize winner if it hadn't sold enough tickets to cover the jackpot during the first four drawings. But ticket sales usually are slow until the jackpot reaches $9 million.

The new rule, which will take effect late this month, requires lottery officials to make a "fair and reasonable" estimation of potential jackpots. If ticket sales fall short, the lottery would be allowed to pull money from other lottery funds to cover the difference.

Since the inflation came to light, officials have been holding the advertised jackpot at the same amount for several drawings until enough tickets are sold to warrant increasing it.

Another major Lotto Texas changes discussed Monday involve the field of numbers from which players choose.

Currently, players can win the Lotto Texas jackpot by matching five numbers between 1 and 44 and one bonus ball number from 1 to 44. Lottery staff members suggested having players select six numbers between 1 and 54 with no bonus ball — the way the game was played before the bonus ball was added in 2003.

AP

Comments

CASH Only

I like the 6/54 idea. Easier-to-win jackpots, but not too easy. Texas should be considering a free play for 2/6 similar to Massachusetts Ca$h WinFall.

Todd's avatarTodd

I'm against free ticket prizes.  I would prefer getting $1, giving the player a choice of how to spend their prize, and not forcing them into a cycle of chasing their money.

CASH Only

I have no problem with free plays. NY Take Five has always had a 2/5 prize since it began nearly 14 years ago.

Drivedabizness

I agree with Todd - I do not llike the idea of "free ticket" prizes.

 

Many players do not consider them a win in the first place - all they do is allow the lottery to inflate their advertised overall odds of winning (unless they actually post the odds of winning a cash prize).  The prize expense of the free tickets can be much better spent elsewhere, IMHO.

 

Who wants to bet what happens when they give their "players" (the people who say they speak for the players) back a "6 of" matrix?  I don't see an upsurge of sales happening but I hope they get it.

Chewie

A free play is one step away from a sucker bet. No loss to the Lottery nor the retailer, and the fish has been hooked. Its all a degree of how atractive the lure is.

JimmySand9

I think Todd's plan works best. What would you rather have, a sure $1, or a longshot chance at $5? How about this plan for the 6/54 game.

 


Avg. Prize
Prize Pool %
Match 6
JACKPOT
75% of remaining pool
Match 5
$3,000
10% of remaining pool
Match 4
$80
15% of remaining pool
Match 3
$5 Fixed
Taken out first
Match 2
$1 Fixed Taken out first

52.5% of sales go to prizes. The prize pool is divided between the Match 6, 5, and 4 categories after the fixed Match 3, and 2 categories are paid.

CASH Only

I think Todd's plan works best. What would you rather have, a sure $1, or a longshot chance at $5? How about this plan for the 6/54 game.

 


Avg. Prize
Prize Pool %
Match 6
JACKPOT
75% of remaining pool
Match 5
$3,000
10% of remaining pool
Match 4
$80
15% of remaining pool
Match 3
$5 Fixed
Taken out first
Match 2
$1 Fixed Taken out first

52.5% of sales go to prizes. The prize pool is divided between the Match 6, 5, and 4 categories after the fixed Match 3, and 2 categories are paid.

IIRC the actual payback in Lotto Texas is 52%. Pretty good for all the criticism the game gets.

End of comments
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