Ky. Lottery Under Fire For Scratch-Off Tickets

Mar 2, 2006, 10:09 am (13 comments)

Kentucky Lottery

In a state known for horse racing and basketball, the ticket of choice for Kentuckians gets scratched every day.

Scratch-off lottery tickets account for 56 percent of all lottery sales.

"Instant lottery ticket sales last year were in the neighborhood of $385 million. This year it'll be over $400 million," Arch Gleason, Kentucky Lottery president, said.

The Kentucky Lottery offers about 80 games a year, and these scratch-off tickets typically stay in a store for about three to four months.

But in Kentucky, those tickets are still being sold long after the top prizes are gone.

Take the $5 "Instant Monopoly" game. Even though the last $40,000 top prize was claimed in late October, tickets continued to be sold two months later.

Indiana, Illinois and Tennessee pull the remaining tickets when the top prizes are gone in a game. Kentucky does not.

"Our information from players over the long term is that while the top prize is a motivator for some to play, players are motivated for the entire experience of playing an instant ticket. They find fun in playing instant tickets. There's a thrill in the reveal," Gleason said.

Some players said they didn't care if the top prize was already gone and they won a lesser prize.

"Sure, I'd be happy. I'd be very happy," Dick Parker said.

Ohio has a top prize drawing for some $3 scratch-off games and on all $5 games and up, giving players a chance to win big even if the top prizes are claimed.

Ohio sold more than $1 billion in scratch-off tickets in 2005.

Cincinnati Attorney Regina Collins played the scratch-off game "Kentucky Millionaire".

"I had never purchased a $20 instant ticket before," she said.

The ticket reads, "Over 10 million dollars in cash prizes from $25 to $1,000 cash."

After scratching off her ticket, Regina discovered she'd won $20, not the advertised $25 to $1,000.

She's suing to get her additional $5 and the additional money she claims other Kentucky Lottery players are owed.

"I could very easily walked away or I could have taken my $20 and been thankful that I got return of my funds. But it's the thought that so many people probably did that. They took their money and ran," Collins said.

According to records from the state, more than 1 million "Kentucky Millionaire" tickets were printed.

Collins hired a former attorney for the lottery corporation to handle her case. He's seeking class action status.

"I would probably guesstimate that there's anywhere from $5 million to $10 million that should probably be paid back to citizens who purchased these tickets," Keith Hunter said

Just like your chances of winning a scratch off ticket, Kentucky Lottery officials said the odds are against Regina Collins.

"We don't believe the suit has merit. We're defending ourselves," Gleason said.

WLWT

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qutgnt

I agree with this lawsuit. The states need to be held liable by the games they play by misleading the public.  I live in ILL and while they might take the games off the shelves once the top prizes are gone, they DONT run through their computer the returned books returned to their facilities by the retailers to see if a big prize was in there.  So you never have a true idea if the winning tickets are really out there. Iin the age of the internet and computers this info should be computed daily and not once a week.  I believe either arizona or new mexico \has a running list of the top prizes available.

Chewie

Hopefully, she will set a precidence in her suit.  One that all states would have to follow.  The states have a computer to tell exactly how much is still available, and most states have a digital screen they use to promote the spending of money.  They could easily tell you what is left in any scratch off game.  Off Track Betting places have huge screens to tell the players what is going on. Little programming effort, and the public would be knowledgeable.  Hummm, what am I saying here?  Ooops, sorry Lottery Directors, didn't mean to step on a portion of your bonus check.

 

DoubleDown

 

"Our information from players over the long term is that while the top prize is a motivator for some to play, players are motivated for the entire experience of playing an instant ticket. They find fun in playing instant tickets. There's a thrill in the reveal," Gleason said.

There's not much thrill when one knows the top prizes are gone.

Sure, some of the second and third tier prizes are nice, but that's not the point.

DD

 

Tnplayer805's avatarTnplayer805
I think it's false advertisement.  If they say win up to on the ticket I expect there to be a prize of that amount out there. 
jim695

I've recently discovered that a class-action suit is currently pending against the Hoosier Lottery for similar offenses (this has nothing to do with what LosingJeff and I are working on).

Apparently, the issue is that the expiration dates for their scratch-off games don't appear on the tickets, nor can this information be found on their website. The only place to find it is on Indiana's State Government website (so I'm told - I couldn't find it there, either), so you can imagine how often it's updated. 

I truly wish them luck with their lawsuit but, given the level of protection the Hoosier Lottery receives from our attorney general and the statehouse, it's unlikely anything will change.

The lottery directors, commissioners and, in some cases, governors aren't going to get the message until we get into their pockets by simply withholding our money and not buying their tickets, or worse, by spending our lottery dollars in another state.

Their short-sighted answer to this would probably be to pass new legislation prohibiting citizens of one state from buying their lottery tickets in another. The other bill would require state tax refunds to be paid in quick-picks. They'll spend millions upon millions of dollars for extra police personnel, roadblocks at state borders, lottery-ticket-sniffing dogs and Taser guns with which to subdue the errant players. They'll spend more millions prosecuting the offenders who dared demand an honest game, and more millions still to house them for the requisite number of years.

This, of course, would give rise to illegal underground lotteries, which would flourish until their operators are caught and executed. Following an extended period of legal machinations and political gyrations, some legislator will one day wake up and say, "Hey! I just thought of something ... If we take just fifty percent of sales, and run an open and honest operation, the state will make lots of money!"

In the words of the immortal Yogi Berra, "It's deja vu all over again ..." 

LotteryPlayer

The solution to this is pretty simple:  start treating lottery employees the way they treat us.

From now on, only 50% of their salaries are guaranteed -- a "second prize" salary, if you will.  Do you think they'll like that?

Bob, Human Resources:  "Here's your $50,000, John." 

John, Lottery Employee:  "$50,000?  My contract says I get $100,000 this year.  What's the deal?"

Bob:  "Sorry, John.  All the $100,000 contracts were paid out months ago to 5 other employees."

John:  "What are you talking about?  My contract clearly says in big letters right on the front that I get $100,000 this year."

Bob:  "Didn't read the fine print, did you, John?  If you look through this electron microscope, you'll clearly see on the back of your contract that it says, 'Only 5 employees will get $100,000 this year'."

John:  "Well, if I had known that the 5 contracts had been paid out months ago, maybe I would've applied for a new job somewhere else."

Bob:  "John, buddy, relax.  You should enjoy getting $50,000.  Our studies have shown that getting $50,000 makes people happy."

John:  "WTF?  That doesn't even make sense.  Of course getting $50,000 makes people happy, but it doesn't mean they're happy that they don't get a chance for $100,000."

Bob:  "Well, our information from employees over the long term is that while the $100,000 contract is a motivator for some to work here, employees are motivated for the entire experience of working at the lottery.  They find fun in working here, and wondering how much of their contract they'll actually receive. There's a thrill in the reveal."

John:  "I'm not thrilled, Bob."

Bob:  "Well, thrilled or not, you better hurry up and take your money because we have another policy that says if you haven't picked up your money within 120 days, we keep all of it."

LOTTOMIKE's avatarLOTTOMIKE

they are just milking the players.bad move.it makes the kentucky lottery look bad.......

Badger's avatarBadger

In Wisconsin, the games run as long as they are scheduled to run, regardless of what prizes are already paid out. You now can find out if the top prize has already been won, but you have to make a lot of work for the clerks to do it, and that doesn't win you any friends in the store, because often the clerks are very busy.

Some stores will run a "ticket" out of the computer that shows which games no longer have a top prize available, and tape it to the counter. In the past, the Lottery Commission didn't even bother letting anyone in the public know what top prizes were already won, until some people discovered this and created a media stink. Seems like the only way to keep things on the "up and up" around here is to bring in the local media.

ayenowitall's avatarayenowitall

The lady lawyer's contention in this lawsuit is clearly based on mixture of wishful thinking and poor reading comprehension. The ticket clearly states, "Over 10 million dollars in cash prizes from $25 to $1,000 cash." That does not mean that all cash prizes are from $25 to $1000. If that were the case, they couldn't even pay the higher $5000, $10,000, and $25,000 prizes. It does not mean that there are no prizes less than $25. It simply means that over ten million dollars worth of the cash prizes offered are in the range from $25 to $1000. Obviously, the lottery wants to put the best possible spin on their games with the language they print on the tickets, but there's nothing false about their claim. I would think that a lawyer would be far more skilled in the precise comprehension of the written word.

As for the scratchoff tickets remaining on sale after the top prizes are already gone, the Kentucky Lottery Corporation devotes quite a bit of its website to listing the remaining prizes available for every single scratchoff game that it offers, and that information is updated in a prompt fashion. The site clearly advises players that "tickets may continue to be sold after some prizes, including all top prizes, have been claimed." I'd say they're being rather upfront with the players. I suppose they could post signs with that statement where all scratchoffs are sold, but this basically just the nature of sratchoff games. 

Furthermore, even the lottery can't possibly know when every single winning ticket has been sold. Tickets are often lost or destroyed. Some people even delay cashing their winning tickets for lengthy periods of time. The lottery won't know that those tickets have been sold until they are ultimately, if ever, claimed.

Personally, I've never won the top prize in any scratchoff game, but I don't play those games very often. I have won some modest prizes and I've been quite pleased with some of those. There's certainly no crime in allowing the players a chance to continue to make money on the lower tier prizes. 

Sratchoff players, like lottery players in general, have to be careful to clearly understand the terms and conditions of any game they might play. Every lottery game is defined by lots of rules and legal stipulations. Don't assume anything about a game and don't read any more into a game than is literally stated. As with all such matters, caveat emptor: Let the buyer beware.

Good luck,

aye'

Uncle Jim

Clearly the Kentucky Lottery is not being up front with their players.  Their notion of who cares if the top prizes are gone it's still fun to play is an insult to the intelligence of the players.  What a crock!

I really like LotteryPlayer's idea! I think we should take it one step farther:

Bob, Human Resources:  Here's you $40,000 salary.

John, Lottery Employee: $40,000?  My contract says $100,000.

Bob: Yes that's correct and here's your $40,000.

John: I don't get it.  My contract says $100,000 but you are only giving me $40,000.  Why?

Bob: Didn't you read the fine print on the back side of your contract?  The $100,000 is the advertised annuity value of your salary.  The cash value of your salary is 40% of the annuity value.  Since you want to paid now...here's your check.

John: Hey WTF?  This check is only for $28,000!  I thought you said $40,000.

Bob: Duh!  You nitwit you have to pay taxes!  Honest to God some people are so naive!

Bob: Here John, smile and hold this.  Click

John: Hey WTF are you doing?

Bob: We're taking a picture of you holding a cardboard check for $100,000.  We want to use it in our recruiting campaigns.

John: Oh man this is Bullsh*t!

Bob: Now follow me John and we'll go meet the press.  

John: Huh?

Bob (to the press)Good morining ladies and gentlemen.  I'd like to introduce you to John.  John just got his lottery paycheck of $100,000.  He lives in Bluegrass City Kentucky and has a wife and 3 kids. 

Nitwit (from the press): John can you tell us how you felt when you realized you'd be paid $100,000 a year by the Kentucky Lottery?

John: #%$*&!@#(%!

Jim 

 

 

CASH Only

Clearly the Kentucky Lottery is not being up front with their players.  Their notion of who cares if the top prizes are gone it's still fun to play is an insult to the intelligence of the players.  What a crock!

I really like LotteryPlayer's idea! I think we should take it one step farther:

Bob, Human Resources:  Here's you $40,000 salary.

John, Lottery Employee: $40,000?  My contract says $100,000.

Bob: Yes that's correct and here's your $40,000.

John: I don't get it.  My contract says $100,000 but you are only giving me $40,000.  Why?

Bob: Didn't you read the fine print on the back side of your contract?  The $100,000 is the advertised annuity value of your salary.  The cash value of your salary is 40% of the annuity value.  Since you want to paid now...here's your check.

John: Hey WTF?  This check is only for $28,000!  I thought you said $40,000.

Bob: Duh!  You nitwit you have to pay taxes!  Honest to God some people are so naive!

Bob: Here John, smile and hold this.  Click

John: Hey WTF are you doing?

Bob: We're taking a picture of you holding a cardboard check for $100,000.  We want to use it in our recruiting campaigns.

John: Oh man this is Bullsh*t!

Bob: Now follow me John and we'll go meet the press.  

John: Huh?

Bob (to the press)Good morining ladies and gentlemen.  I'd like to introduce you to John.  John just got his lottery paycheck of $100,000.  He lives in Bluegrass City Kentucky and has a wife and 3 kids. 

Nitwit (from the press): John can you tell us how you felt when you realized you'd be paid $100,000 a year by the Kentucky Lottery?

John: #%$*&!@#(%!

Jim 

 

 

And I still don't know whether KY has a cash option in Lose for Life.

Chewie

Doesn't matter Cash - life goes on without that knowledge!  Amazing how it works!

justxploring's avatarjustxploring

"As for the scratchoff tickets remaining on sale after the top prizes are already gone, the Kentucky Lottery Corporation devotes quite a bit of its website to listing the remaining prizes available for every single scratchoff game that it offers, and that information is updated in a prompt fashion. The site clearly advises players that "tickets may continue to be sold after some prizes, including all top prizes, have been claimed." I'd say they're being rather upfront with the players. I suppose they could post signs with that statement where all scratchoffs are sold, but this basically just the nature of sratchoff games. "

I was going to post, but I think "Aye" said it all for me.  I Agree!

 

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