Man sues S.C. Lottery, claiming the state is misleading ticket buyers

Dec 30, 2005, 6:26 am (39 comments)

South Carolina Lottery

A Charleston County, South Carolina, man has sued the state lottery for fraud, claiming false advertising caused him to buy scratch-off lottery tickets for prizes already claimed.

Pete Cuming filed the lawsuit one week after a state audit revealed the lottery, in a single year, sold nearly $20 million worth of tickets in 16 scratch-off games after all the contests' top prizes were awarded. His lawyers are seeking class action status, saying the millions of dollars represent thousands of misled ticket buyers.

"In essence, a player is led to believe that he or she has the chance to win the top prize advertised even though he or she does not," the lawsuit said.

Attorney David Haller of Mount Pleasant called Cuming a routine scratch-off player but declined to say how much his client had spent on the games. The issue, he said, is that Cuming and others purchase tickets in hopes of winning an advertised top prize that no longer exists.

Ernie Passailaigue, the lottery's executive director, declined Thursday to talk about the lawsuit, except to say, "We intend to show up in court and defend the lawsuit vigorously." He and the Lottery Commission's six members are named in the suit, filed Dec. 22 in Richland County, where the lottery is headquartered.

Barbara Pate, an employee of an Exxon gas station in Columbia which sold the state's first scratch-off tickets in January 2002, called Cuming's lawsuit "ridiculous." She said customers at her store spend up to several hundred dollars at a time on scratch-off tickets, sometimes buying an entire roll of $10 tickets because those pay out the most.

"He didn't have to buy the tickets," Pate said.

Haller acknowledged those playing are entitled to buy or not buy lottery tickets. But their decisions should be based on accurate information, he said.

"They're not getting a fair shot to make an informed decision," he said.

Each week, the lottery updates online the total prize money and top prizes left in its instant games. But prizes are often claimed and unavailable within each seven-day update, and no one knows, Haller said. Also, he said, many who play the scratch-off games don't have access to the lottery's Web site.

When the Legislative Audit Council released the lottery audit Dec. 15, Lottery Commission Chairman John C.B. Smith Jr. called the scratch-off findings no big deal.

"We have a rich lower-tier prize structure, and we find that most players are playing the scratch off games for the lower-tier prizes," he said then.

But state Sen. Greg Ryberg, R-Aiken, said that's not an adequate response, since the state continues to promote games based on the most they pay out. He said the lottery should immediately notify retailers when someone claims the top prizes and require they stop selling those tickets, as lotteries in California and Virginia do.

"If we're knowingly selling tickets for prizes people have no chance of winning, it actually borders on criminal," said Ryberg, who added he's never liked the lottery.

"But this is absolutely a new low," he said. "How can we do this to our own people?"

Ryberg is a candidate for state treasurer.

A hearing on the suit was scheduled Friday in Columbia. Cuming's attorneys were asking for a temporary order that would force the state to stop selling tickets for games advertised for more than what's possible to win.

But the state on Thursday moved the case to federal court, which canceled the hearing.

Ryberg called that a mistake.

"I don't see how a state agency can move this to federal court," he said. "This is the state's business and the state courts ought to handle it."

Haller said other lottery players called his Mount Pleasant office nonstop Thursday, after The (Charleston) Post and Courier first reported the lawsuit. Cuming's other attorneys are Lawrence Richter Jr., also of Mount Pleasant, and Dick Harpootlian, the former state Democratic Party chairman who worked to make the lottery legal.

AP

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DoubleDown

This does bring up an interesting question-

What does Cali and VA do with the  tickets after the top prizes are claimed -pull them from the shelves, send them back to Lottery HQ and destroy them ?

Seems like a waste since the lower tier prizes can still be won. The odds on the top prize are ridiculous anyway...

Winner2Be's avatarWinner2Be
Interesting....
I live in Charleston...but I don't buy scratch offs so I guess I can't call this attorney. White Bounce
RJOh's avatarRJOh

This same problem has come up in other states so it's nothing new.  Ohio resolved it by having a Top Prize Drawing after all the tickets are sold or the game ends.  Tickets with a TPD win a prize and are entered in a drawing for the top prize, so as long as some tickets have a TPD on them a chance to win a big prize still exists.

Chewie

It is like betting on a horse race, and not all the horses run.  Then being told you can't have your money back because we thought the horse would run.  Why should the state get away with the same thing a car dealer is penalized for?  Because they are the state?  It the same old story of screwing the "little people" because they don't have the assets or knowledge of the language to question or complain.

JAP69's avatarJAP69

I can see the drool running out of the lawyers mouths.

wpb's avatarwpb

The South Carolina web page clearly tells you how many top prizes are left and the date of the last update.  I think people should check this before buying tickets.

konane's avatarkonane

Seems if scratch-off winners with remaining jackpots were updated every 24 hours and individual scratch off game information could be punched up by ticket retailers upon request from a purchaser, it would seem to satisfy any potential argument someone might have.  Needs to also have a disclaimer attached also.

JAP69's avatarJAP69


Another thing about scratchers in S.C. that I have seen is that some scratchers can be sent in to the lottery for a second chance drawing for a large prize. That is a large prize still available

Also another point is on the daily 3 and 4 games. They payout a set figure for the wins on St/bx bets. Should I sue for not getting a prize level that was not paid out on the percentage of the pool for that day.
I see N.J. has pari-mutel payouts with a payout percentage higher at times than the set figure that we have for st/bx.

Tenaj's avatarTenaj

The South Carolina web page clearly tells you how many top prizes are left and the date of the last update.  I think people should check this before buying tickets.

Unhappy A list is posted on the wall as well.

konane's avatarkonane


Another thing about scratchers in S.C. that I have seen is that some scratchers can be sent in to the lottery for a second chance drawing for a large prize. That is a large prize still available

Also another point is on the daily 3 and 4 games. They payout a set figure for the wins on St/bx bets. Should I sue for not getting a prize level that was not paid out on the percentage of the pool for that day.
I see N.J. has pari-mutel payouts with a payout percentage higher at times than the set figure that we have for st/bx.

Seems that by feigning stupid, people don't want participate in a lottery for a chance to win, they want a guarantee they will win.

Attorneys have made whole careers from managing to persuade courts that we're in the dark ages when people didn't know how to read/decipher nor had information readily accessible to find out what they want to know.

We have web accessible cell phones now, computers in libraries, internet cafes so there is no excuse.

 

DoubleDown

The South Carolina web page clearly tells you how many top prizes are left and the date of the last update.  I think people should check this before buying tickets.

Unhappy A list is posted on the wall as well.

And the attorney will argue that:

*The list on the wall isn't updated as it should be

*Lots of scratch off players are not computer-literate and/or own one so they cannot log on and see the updates

 

The craziness will never end 

BaristaExpress's avatarBaristaExpress

This does bring up an interesting question-

What does Cali and VA do with the  tickets after the top prizes are claimed -pull them from the shelves, send them back to Lottery HQ and destroy them ?

Seems like a waste since the lower tier prizes can still be won. The odds on the top prize are ridiculous anyway...

Here in Delaware as soon as all of the top prizes are won they tell all retailers to pull the remaining tickets off the shelves and send them back to lottery HQ. It's not a waste, they just feel that most who play the (instant/scratch off) lottery tickets want to win the top prizes they have to offer and if they win one of the lower prizes that just makes it all the better to those people! I see it as making the game as even as possible to everyone to win the top prizes. And if they just so happen to be lucky enough to win one of the 2nd or 3rd tier prizes that just makes their playing those games all that much more fun for them!

I feel SC needs to be taken to the cleaners for not pulling the remaining tickets when all the top prizes have all been claimed! Selling tickets with no top prizes left could be found to be right on the edge of committing fraud, if not outright fraud! Remember everyone, if that was you or I doing something like that, it would be considered fraud! But since it's a state government approved game it will not be considered fraud on the part of the state of SC! They'll just be told not to do it knowingly any more! 

Think's avatarThink

I don't understand why people buy scratch off tickets!  Think about it. 

1. It is absolutely impossible to win the top prize unless the top prize ticket happens to be in the store where you are buying tickets.

2. Somebody somewhere has to decide where to send the top prize winning ticket.

3. Look what happend in Indiana when someone in the lottery office told his buddy where the top prize winning ticket was!

4. There are better games from the online terminals (at least here in MI)

Bradly_60's avatarBradly_60

We had a big thing about this not to long ago.  There is nothing wrong with states selling tickets after the top prize is awarded.  NO WHERE does it gaurantee that you will win the top prize.  How is it false advertising when they say you can win up to the top prize.  If you don't want to buy tickets that don't have top prizes then find out for yourself which ones those are.  If the states had to pull them from the shelves after the top prize was awarded states would be forced to make sure that one top prize is at the end of the ticket run.  Lotteries aren't there to lose money and they never will.  Here in Michigan they recently started putting on tickets that prizes are based on previous sales and that is good enough for me.  This is some stupid person either trying to make a quick buck or get some attention.

Brad

Todd's avatarTodd

I don't understand why people buy scratch off tickets!  Think about it. 

1. It is absolutely impossible to win the top prize unless the top prize ticket happens to be in the store where you are buying tickets.

2. Somebody somewhere has to decide where to send the top prize winning ticket.

3. Look what happend in Indiana when someone in the lottery office told his buddy where the top prize winning ticket was!

4. There are better games from the online terminals (at least here in MI)

I think the main reasons people buy them are:

  1. It's fun to scratch off
  2. There are many varieties of games (and prices)
  3. You know instantly if you won anything -- so you can run back into the store and buy another handful! Wink

On point #3, I have seen that phenomena more times than I'd like.  People buying scratch tickets and then immediately buying more ... and more.  Unless you've got money to burn, that seems excessive to me.

fxsterling

I USE THE GA. site to increase my odds    king kong has 7 unclimed prizes been on sale for 90 days  that means my odds are better            other games have only a few winners left  bad odds

konane's avatarkonane

I USE THE GA. site to increase my odds    king kong has 7 unclimed prizes been on sale for 90 days  that means my odds are better            other games have only a few winners left  bad odds

If you recall we've had that information available just a few years ... and it only came about after a news story revealed the fact that the information was not available even through call in customer service.

KY Floyd's avatarKY Floyd

Bradly_60 wrote:

<< There is nothing wrong with states selling tickets after the top prize is awarded.  NO WHERE does it gaurantee that you will win the top prize.  How is it false advertising when they say you can win up to the top prize.  >>

You're right that there's nothing wrong with selling the tickets. If people are stupid enough to buy them, there's also nothing wrong with selling tickets to a game where the only prize is a free ticket, and the odds od winning are 100 to 1. 

The problem isn't the selling of the tickets, per se, but with how games are advertised, and even an idiot should be able to figure out that advertising something that isn't available is misleading. When an advertiser makes a claim that is materially false, they are guilty of false advertising. If a merchant sells you something that doesn't do what they claim, or doesn't come with the things they claimed it comes with the law says you're entitled to a refund. As with many other things involvong the government, the fox is guarding the henhouse, and what would get private businesses in trouble is often the staus quo for government agencies.

Even if there is a list on the wall and it gets updated every 5 seconds, the games are still being advertised based on prizes that have already been claimed.Even if the lottery stops advertising in the media once top prizes are claimed, the tickets themselves will still be making claims that are then false. If the game had just a single million dollar winner, it will usually be clearly touted on the front of the ticket. It's always smart to be an informed consumer, but that doesn't mean merchants should be allowed to make claims that are patently false.

Chewie

There are no rules for the greedy or the careless.  That will remain a fact as long as there are trial lawyers.

konane's avatarkonane

Bradly_60 wrote:

<< There is nothing wrong with states selling tickets after the top prize is awarded.  NO WHERE does it gaurantee that you will win the top prize.  How is it false advertising when they say you can win up to the top prize.  >>

You're right that there's nothing wrong with selling the tickets. If people are stupid enough to buy them, there's also nothing wrong with selling tickets to a game where the only prize is a free ticket, and the odds od winning are 100 to 1. 

The problem isn't the selling of the tickets, per se, but with how games are advertised, and even an idiot should be able to figure out that advertising something that isn't available is misleading. When an advertiser makes a claim that is materially false, they are guilty of false advertising. If a merchant sells you something that doesn't do what they claim, or doesn't come with the things they claimed it comes with the law says you're entitled to a refund. As with many other things involvong the government, the fox is guarding the henhouse, and what would get private businesses in trouble is often the staus quo for government agencies.

Even if there is a list on the wall and it gets updated every 5 seconds, the games are still being advertised based on prizes that have already been claimed.Even if the lottery stops advertising in the media once top prizes are claimed, the tickets themselves will still be making claims that are then false. If the game had just a single million dollar winner, it will usually be clearly touted on the front of the ticket. It's always smart to be an informed consumer, but that doesn't mean merchants should be allowed to make claims that are patently false.

Possible solution ..... a small terminal in every store that sells scratch offs, which allows a potential customer to access current status of any scratcher based upon updates every 24 hours or more often if possible. 

Offers an immediate means to find out if someone has questions and seems to place any purchase of scratchers in a category of informed consent.

Expensive, but no more so than greed driven lawsuits.

There is a risk in every action taken even walking across the street.  Lotteries are based upon taking a risk buying a chance at a prize.  No amount of lawsuits whether real of frivolous are going to remove the inherent factor of risk from playing a lottery. 

People who are not willing to take the responsibility to inform themselves prior to buying a ticket of any sort should simply not play. ..... And just think the same people are issued drivers licenses and are allowed to vote.  Whoda' thunk it????????????

zanbab

scratch offs  are  rip  offs,  stick  with  the  pick 3. i have been  playing  lottery  for  30 yrs  never  bought  a  scratch off,  your  a loser in the  long  run, plus when the  jackpot is  won, on  a  scratch off they  should  post  it. the  man  is  right.

konane's avatarkonane

Bradly_60 wrote:

<< There is nothing wrong with states selling tickets after the top prize is awarded.  NO WHERE does it gaurantee that you will win the top prize.  How is it false advertising when they say you can win up to the top prize.  >>

You're right that there's nothing wrong with selling the tickets. If people are stupid enough to buy them, there's also nothing wrong with selling tickets to a game where the only prize is a free ticket, and the odds od winning are 100 to 1. 

The problem isn't the selling of the tickets, per se, but with how games are advertised, and even an idiot should be able to figure out that advertising something that isn't available is misleading. When an advertiser makes a claim that is materially false, they are guilty of false advertising. If a merchant sells you something that doesn't do what they claim, or doesn't come with the things they claimed it comes with the law says you're entitled to a refund. As with many other things involvong the government, the fox is guarding the henhouse, and what would get private businesses in trouble is often the staus quo for government agencies.

Even if there is a list on the wall and it gets updated every 5 seconds, the games are still being advertised based on prizes that have already been claimed.Even if the lottery stops advertising in the media once top prizes are claimed, the tickets themselves will still be making claims that are then false. If the game had just a single million dollar winner, it will usually be clearly touted on the front of the ticket. It's always smart to be an informed consumer, but that doesn't mean merchants should be allowed to make claims that are patently false.

Possible solution ..... a small terminal in every store that sells scratch offs, which allows a potential customer to access current status of any scratcher based upon updates every 24 hours or more often if possible. 

Offers an immediate means to find out if someone has questions and seems to place any purchase of scratchers in a category of informed consent.

Expensive, but no more so than greed driven lawsuits.

There is a risk in every action taken even walking across the street.  Lotteries are based upon taking a risk buying a chance at a prize.  No amount of lawsuits whether real of frivolous are going to remove the inherent factor of risk from playing a lottery. 

People who are not willing to take the responsibility to inform themselves prior to buying a ticket of any sort should simply not play. ..... And just think the same people are issued drivers licenses and are allowed to vote.  Whoda' thunk it????????????

"This is some stupid person either trying to make a quick buck or get some attention.

Brad "

My sarcasm above was to state that I don't come anywhere near believing that people are as ill informed or victimized as they would lead the public to believe.

Seems to me the person with the complaint was smart enough to figure out a possible technicality and begin to legally exploit it for compen$ation.

Attorney(s) wants to win the lottery by gaining class action status.  Class action suits are home runs for attorneys only ... with plaintiffs being thrown a few crumbs for which they should be grateful.

Chewie

People who are not willing to take the responsibility to inform themselves prior to buying a ticket of any sort should simply not play. ..... And just think the same people are issued drivers licenses and are allowed to vote.  Whoda' thunk it????????????

And the scary part is: They do drive and they do vote.  Now you know who they are talking to on their cell, their lawyers!

TheGameGrl's avatarTheGameGrl

My home state of PA sends out a printout each day from the terminals to say what prizes remain or when a game is being "retired". Any time I am standing in line waiting my turn I review the list. You are even allowed to have the lottery attendent print the report that shows remaining prizes . How cool is that! Many folks don't think to ask if it can be done or if they are allowed to have one. Most often the lottery attendent will graciously abide. (they want winners as well as the rest of us players!).Each month they do print out a newsletter that resides near the terminals to make any important announcement or changes. Which I think is a great way to keep the players informed!

bell815

I am also from SC and i agree if the top prizes are gone then you should know it in advance. However, you are taking a risk do to the words up to. So this is a catch-22.

DoubleDown

No scratchie on the counter !!!!! 

Too much graphite to clean up.

 

DD

HIMSELF's avatarHIMSELF

i agree with the lawsuit ..if i were given a fair chance to win,

then good, not a guarantee to win. 

several problems arise within the s.c.lottery systems. 

list not updated.  clerks not knowledgeable. should not require a cell phone

or internet. and last but not least. scratch offs are pulled in certain areas.

when main prize is gone.  This much i do know.

hypersoniq's avatarhypersoniq

they (S.C.) need a page like this...

PA's instant  prizes remaining tracker...

http://www.palottery.state.pa.us/lottery/PALotto/instPrizes.asp

oh, wait... they DO...

http://www.sceducationlottery.com/games_statsreport.asp

don't all libraries have free internet access?

frivelous lawsuits. Roll Eyes

maybe they want to play musical chairs only they don't take a chair away when the music stops... so nobody feels left out...

konane's avatarkonane

they (S.C.) need a page like this...

PA's instant  prizes remaining tracker...

http://www.palottery.state.pa.us/lottery/PALotto/instPrizes.asp

oh, wait... they DO...

http://www.sceducationlottery.com/games_statsreport.asp

don't all libraries have free internet access?

frivelous lawsuits. Roll Eyes

They seem to have covered their bases well because two columns state
 
"Est. Top Prizes Left"  
 
"Est. Total Prizes Left." 

 

When a means is provided to find out information and people fail to use it, seems a very flimsy excuse to sue.  I personally hope it gets tossed out of court due to lack of merit.

I however am in favor of all lotteries disclosing this type information, making it available on their website or call in customer service so players can make an informed decision. 

mylollipop's avatarmylollipop

These boots are made for walking....and the beat goes on!  And the gamblers loose.  What is a lottery but a gamble?!Clown

Chewie

they (S.C.) need a page like this...

PA's instant  prizes remaining tracker...

http://www.palottery.state.pa.us/lottery/PALotto/instPrizes.asp

oh, wait... they DO...

http://www.sceducationlottery.com/games_statsreport.asp

don't all libraries have free internet access?

frivelous lawsuits. Roll Eyes

maybe they want to play musical chairs only they don't take a chair away when the music stops... so nobody feels left out...

Because PA has computer tracking, doesn't make a SC lawsuit frivelous.  There are thousands, hundreds of thousands of scratch off players that don't have access to libraries, or even know where one is.  If they did, an equal number wouldn't know how to use a computer, or are afraid of being tracked by the government.  A lot are "illegals" and are afraid or don't speak the language. The target group for the lottery directors.  Just because people on this group know everything there is to know about computers, doesn't mean every one else does. Remember who this gambling effort is orientated towards, the poor and the uneducated.  They are being ripped off by their government because of who they are and what they are.  In many cases. they're only option is a lawsuit.

GVILLE's avatarGVILLE

HMMM..... SC Government or SC Lawyers? Seems we lose either way. These two are only looking out for #1 (themselves).

Tenaj's avatarTenaj

Smash Remember who this gambling effort is orientated towards, the poor and the uneducated.  They are being ripped off by their government because of who they are and what they are.  In many cases. they're only option is a lawsuit.

Most industries capitalize on the ignorance of the masses.  The lottery commission is no different.

Chewie

Agree, thus, when they get caught, they should be subject to the same penalties. When Enron executives do something wrong and people loose money, the Government goes after Enron executives with the full force that every tax penny can afford.  In this case, those loosing money only have one recourse; lawsuit.  It's time the people remember who the forefathers died for; the people - NOT the government.  The government has spent centuries making themselve into power and money hungry entities.  They should be brought back to their proper place - lawsuits are good tools to start bringing them back to reality.

NCPicks

The fact remains that the people of SC can find the information if they persue it.If they don't,it's not the states fault.I don't see their misfortune if they're just lazy.If they care so much,do your homework instead of demanding that the state do all your thinking for ya.Get over yourselves.

CASH Only

The NY Lottery misleads the public in radio commercials "you can win a million dollars". Not until after you buy the ticket, you read the fine print on the back.

NCPicks

The NY Lottery misleads the public in radio commercials "you can win a million dollars". Not until after you buy the ticket, you read the fine print on the back.

What if someone buys a ticket for you?

DoubleDown

The NY Lottery misleads the public in radio commercials "you can win a million dollars". Not until after you buy the ticket, you read the fine print on the back.

Ok CASH, I'll bite....what does the ticket's fine print say ?

Iesha Kelly

they (S.C.) need a page like this...

PA's instant  prizes remaining tracker...

http://www.palottery.state.pa.us/lottery/PALotto/instPrizes.asp

oh, wait... they DO...

http://www.sceducationlottery.com/games_statsreport.asp

don't all libraries have free internet access?

frivelous lawsuits. Roll Eyes

maybe they want to play musical chairs only they don't take a chair away when the music stops... so nobody feels left out...

Because PA has computer tracking, doesn't make a SC lawsuit frivelous.  There are thousands, hundreds of thousands of scratch off players that don't have access to libraries, or even know where one is.  If they did, an equal number wouldn't know how to use a computer, or are afraid of being tracked by the government.  A lot are "illegals" and are afraid or don't speak the language. The target group for the lottery directors.  Just because people on this group know everything there is to know about computers, doesn't mean every one else does. Remember who this gambling effort is orientated towards, the poor and the uneducated.  They are being ripped off by their government because of who they are and what they are.  In many cases. they're only option is a lawsuit.

well-written, chewie.  well said.

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