California State Lottery

The meeting included a report on strong lottery sales and their positive impact on public education funding. The Commission approved several contract actions, including a financial audit services extension with Weaver & Tidwell, LLP, a communications effectiveness research study with Alter Agents, a data security platform renewal with Varonis, an email marketing platform renewal with Adobe, a core IT infrastructure license agreement with Microsoft, and contract extensions for Astute Solutions, LLC, Quantasy & Associates, LLC, and Victory International Group, LLC. Additionally, the Commission approved a new delivery services agreement with FedEx Corporate Incorporated.

The meeting included the introduction of the newly appointed Commissioner Ukau Dungca. Key discussions centered on informational items, including Director's Comments which noted total sales exceeded $3.6 billion through mid-November, exceeding last year's sales by 13 percent, and the contribution to education being estimated at $762 million for the first quarter. The Lottery Business Review Highlights detailed sales trends, noting the Lottery is the second largest in the U.S. by sales but the number-one lottery for selling instant tickets (Scratchers). Discussions also covered Scratchers price point shifts and player perception initiatives. The Audit Committee provided an update, noting the internal audit function is collaborative and recently underwent an external quality assurance review without reportable findings. Action items included seeking Commission approval for a Juniper Network Switch Refresh purchase, DocuSign subscription renewal, and approval of the Revised Fiscal Year 2025-26 Budget. Commissioner discussions involved future strategic planning based on business data, goals for image campaigns, and challenges related to statutory restrictions preventing technological advancements like digital play slips and cashless vending machine options.

The meeting covered key agenda items including the adoption of the agenda and the approval of the minutes from the May 13, 2025, Commission Meeting. A significant portion of the meeting involved the annual election of the Chair and Vice Chair, resulting in the approval of Anthony Garrison-Engbrecht as Chair and Keetha Mills as Vice Chair. Informational items included the Director's comments on strong first-quarter sales figures, exceeding goals by 12 percent over the approved target, and highlighting the success of new NFL Scratchers® games and a major Powerball jackpot cycle. Action items included the ratification of an amendment to add funds ($824,133) to the Z Squared Construction Agreement for the Northern Distribution Center Remodel, ratification of a purchase order for 30 fleet vehicles for the FY '25/'26 Replacement Plan, approval of the annual Investment Policy and Investment Strategy (which remains conservative, focusing on US Treasury Bonds), and approval of new primary and secondary contracts for Scratchers® Products and Related Services with Pollard Banknote Limited, Scientific Games International, and BrightStar Lottery.

The meeting covered agenda approval, with one action item postponed to a future date. Informational items included Director's comments reporting that total sales exceeded $3.6 billion through mid-November, with Scratchers driving growth, and first-quarter contributions to education estimated at $762 million. The business review highlighted Scratchers as the primary growth driver and noted an increase in public awareness regarding Lottery funds benefiting education. The Audit Committee provided an update on its oversight activities. Action items included the unanimous approval to purchase new Juniper Core Network switches with a support agreement and the renewal of the DocuSign subscription for two years. The Commission also approved the revised Fiscal Year 2025-2026 budget, projecting a contribution to public education of $2.112 billion, despite the mid-year revision.

The California State Lottery's Fiscal Year 2025-26 Annual Budget Report serves as a comprehensive financial roadmap detailing its operations and strategic direction. The plan aims to consistently exceed $2 billion in contributions to California's public schools, with key strategic objectives including growing Draw Game and Scratchers sales, improving public knowledge and perceptions of the Lottery, expanding and optimizing the retail network, and enhancing the overall customer experience. It also commemorates the Lottery's 40th Anniversary, ensuring effective and mission-focused utilization of funds to support education.