Lottery director resigns over jackpot scandal

The executive director of the nation’s third-largest lottery has resigned following a scandal involving inflating jackpots. Prior to his resignation, Reagan Greer had overseen the Texas Lottery since 2003. His resignation comes just two weeks after he admitted approving advertising Lotto Texas jackpots higher than what ticket sales could support. “”In recent days, it has become clear that intense, ongoing efforts to restore Texans’ confidence in the lottery can best be advanced through a change of leadership,“ Greer wrote in letter of resignation. Greer said he had signed off on a staff report proposing an $8 million advertised jackpot for June 8 even though the report said estimated sales could cover only $6.5 million. Greer said he approved that and two earlier inflated estimates without studying them because he trusted their accuracy. In an upcoming lottery commission meeting agenda, it is suggested Greer could have been fired had he not stepped down. It also indicates five top staff members could be reassigned, including the deputy director who now assumes Greer’s duties. Lottery commission chairman Tom Clowe did not immediately return a call seeking comment Friday. The inflated jackpots came to light after a lottery watchdog filed a complaint with the state attorney general. Afterward, the commission for the first time held the Lotto Texas jackpot at $8 million for the June 11 drawing because that was all estimated sales could support. The Lotto Texas jackpot starts at $4 million and typically grows by at least $1 million each time no tickets match all five numbers and a bonus ball. During the first four drawings, the commission can use reserves for payouts if not enough tickets have been sold. But ticket sales usually are slow until the jackpot reaches $9 million. Lee Deviney, one of two managers who proposed the inflated jackpots, told The Associated Press the agency did not have a clear policy on what should happen in such a situation, even though top management knew as early as March 2004 that it was likely to occur. He was fired after the inflated jackpots became public. When Greer became executive director of the Texas Lottery Commission, he said he focused on the importance of integrity in overseeing games of chance. As he stepped down Friday in the wake of a scandal over inflated lottery jackpots, the former Bexar County district clerk said that focus hadn’t changed in time on the job. “It still is key, and people have to know that when they’re playing the games, they get a fair shake,“ Greer, 47, said in an interview shortly after his resignation became effective at 5:30 p.m. Friday. “The integrity of the process has not been compromised.” To continue reading this article, purchase the December 31st edition of the Steel Country Bee, or go to our online e-edition at: http://www.etypeservices.com/Daingerfield%20BeeID312/default.aspx