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Saturday, March 8, 1997

Change in pay-out boosts jackpot growth

AUSTIN (AP) - Avid Texas Lotto players know the usual growth of the game's jackpot: an unclaimed $4 million jackpot goes to $8 million.

So what's up with tonight's $9 million jackpot?

Steve Levine, spokesman for the Texas Lottery, said a recent change in the way jackpots are paid has allowed the pot to grow at a faster rate.

Starting with the lotto drawing on Feb. 12, jackpot winners have had the option of taking their cash in a lump sum, equal to about half of the estimated jackpot, or in 25 annual payments. Players must decide how they want their potential winnings before buying their numbers.

Before Feb. 12, winners had to take their winnings in 20 annual payments.

Levine said with five more years to invest the winning jackpot, the lottery is able to increase the growth of jackpots more quickly.

"With a little more experience under our belt, we may be able to grow it faster," Levine said, adding however that ticket sales still will dictate jackpot growth.

"We haven't had anyone complain that they want the jackpot to be $8 million instead of $9 million. It just makes sense with more years to pay off, you can up the jackpot," he said.

Since the change, five people have won three jackpots. Two of them have claimed their prizes. Both chose 25 annual payments.

"A lot of people are wondering why it's more," said Alvin Potter, owner of Town and Country North in McAllen. The store is one of the state's top lotto sellers and has had two jackpot winners since 1992.

"They think we've made a mistake posting it, but that's what (the lottery) is telling us," he said.

Potter said most players have been very receptive to - even if not totally clear about - the lump-sum payment plan.

"They're not complaining," Potter said. "A lot of them want to know what happens to the other half. We tell them there is no other half. That would have been the interest."

Edmon Bailey, who plays the lottery weekly, said he likes the new pay out option but sticks with the 25-year pay out. He also said anything that makes the jackpot grow faster is fine with him.

"The most i've ever won is about $3," said Bailey, who works for a parking service in Austin. "Hopefully, I might win more some time." Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
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