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Professor sues Va. Lottery for $85 million
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by CJaye | July 11, 2008 at 04:40 am
1037 views | 15 Recommendations | 9 comments
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A Washington and Lee University professor has carried out his threat to challenge the Virginia Lottery. Business professor Scott Hoover is claiming in a lawsuit that millions of dollars worth of scratch-off tickets were sold even though the top prizes had already been won.
Attorneys for Hoover, who threatened legal action in early June, filed suit against the state on Friday in Richmond Circuit Court. They asked that the state-run game give back $85 million to gamblers who bought tickets that had no chance of winning the promoted top prize.
“The lottery markets and designs these tickets so that they all focus upon the top prize and promises the purchaser some chance to win it,” but, over the past five years, “the lottery has regularly refused to pull tickets from at least 60 game orders after the final prize has been claimed,” according to the suit filed by
Roanoke lawyer John Fishwick Jr. on Hoover’s behalf.
In response, Paula Otto, executive director of the lottery, said Scratcher buyers can be confident that they always have a chance at the big money.
“We don’t have any games out there that don’t have a top prize,” she said.
Otto said 85 percent of Scratcher games end as soon as the top prizes are claimed, and any unbought tickets are removed from stores. For the remaining 15 percent of the games, the lottery has in the past sent additional tickets to stores before the top prize was claimed. However, because it was possible that the top prize could be won before the additional tickets were sold, the lottery dropped the replenishment system in July 2007, Otto said.
After Hoover’s threat of legal action, the lottery double-checked its tickets and found only about 2,000 Scratchers for sale that held no chance of winning a top prize, Otto said. She said those tickets were immediately removed. For an agency that sells more than $700 million worth of tickets yearly, the number of defective tickets “was really very, very small,” she said.
In his suit, Hoover claims the lottery has sold 36.8 million tickets when no top prize was available. At least 26.5 million of those tickets “had no prize at all to recoup the price paid” for the ticket, he said.
Hoover is asking the court to put $85 million in a fund and set up a claims procedure for ticket buyers to seek reimbursement.
Other links to the story:
http://groups.google.com/group/misc.legal/browse_thread/thread/a492940f5a55e5d2
www.wset.com/news/stories/0608/527002.html
source:http://www.staffordcountysun.com/scs/news/state_regional/article/professor_sues_va_lottery_for_85_million/17886/
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CJaye
Virginia Beach, Virginia, United States
Most RecentMost Recommended Comments (9)
at 10:35 on July 11th, 2008
CJaye, I like this story. It's good stuff. In SC and GA there is a statement on the tickets and at the vender that they will continue to sell tickets even if the top prize has been won. One can go to the websites and find out what prizes are still available but I think the vender should be required to display
In the state you are talking about, if they don't have a statement like the one above, a lawsuit is appropriate. One has a much better chace of winning a law suit then winning on scratch offs. Based on the odds, it is more likely to be hit by lightning 7 times before winning the top prize.
the changed odds and whay prizes have beem won.
at 15:31 on July 11th, 2008
Thank you for the good stuff comment. Mr Hoover was right in what he did. He's the Associate Professor of Business Administration/Finance at the Williams School of Commerce,Economics,and Politics in Lexington, Virginia I watched a interview with him and the story on how he figured out about the loto ticket. Seems to be really nice guy.
at 15:51 on July 11th, 2008
CJaye, I like this story. It's good stuff.
at 04:07 on July 12th, 2008
Thank you Ronda, if I may call you by your first name. it seems he has a good case.
at 11:26 on July 12th, 2008
You are very welcome! I agree, it appears Mr. Hoover has a very good case. It appears also that he has exposed the truth of another 'system'. Hopefully, scratch-off lovers will take heed! Thanks again for posting this story!
at 04:18 on July 13th, 2008
Fruad is Fruad!
at 20:36 on November 18th, 2008
The Virginia Lottery has added another twist to its bag of tricks. The popular scratcher "$100 million Cash Extravaganza #773" is being pulled from the racks of vendors with half the $1,000,000 top prizes still unclaimed. One can drive up and down US 29 between Gainesville and Charlottesville and the vendors all report the same problem. The lottery came and took all the remaining cards for this game. Most stores have been without these scratchers for 7-10 days. However, only 70% of this game has been sold. The odds of winning one of the remaining top prizes is exceptionally high compared to the typical odds. The Lottery is closing it down just when the odds improve for the players.
Sales were not "slow" for this game. Vendors along US 29 routinely sold out of this game. Since the Lottery may discontinue a game for any reason, it is well within its right to stop the game. However, the public needs to know more about the inner workings of the Lottery. This cash cow needs a bit of sunshine poured onto its operations.
The defination of an airport is a flat piece of real estate surrounded by high tension wires and politicians. I am sure there is an equally apt defination for the Virginia Lottery and the public needs to know more than how much money was raised by education by the system.
at 14:51 on March 4th, 2009
RSvBi3 flgoey72FdAa1nc830fNdKu
at 18:04 on April 7th, 2009
can any one tell me where i can find in Georgia,what prizes are left or jackpots for scratchoffs ?