Sherri A. Vargas-Welch

This draft strategic plan for the California State Lottery provides broad direction for the next 3-5 years, alongside the Draft FY 2026-27 Business Plan. It outlines key objectives to reduce reliance on large jackpots by growing Draw Game sales, eliminate barriers for infrequent Scratchers players, expand engagement with Core Scratchers players to address competition, elevate the customer experience for all stakeholders, and modernize Lottery programs and processes to reduce costs and enhance efficiency. The plan aims to maximize contributions to education while adapting to market changes and competition.

The Commission addressed several action items, including the addition of new positions to the Finance Division, the renewal of IT support agreements for Juniper Network switches, Microsoft 365, and ServiceNow, the establishment of a Palo Alto Networks Enterprise Agreement, and a contract extension for bulk delivery services with Go-Getters Delivery, Inc. Additionally, the Commission received updates on the Lottery's financial performance, including a comparison of sales figures with other state lotteries and the status of current game promotions, and discussed the potential broader integration of Artificial Intelligence tools within agency operations.

The commission reviewed informational updates regarding lottery sales performance and contributions to education. Action items addressed and approved included adding personnel to the Finance Division, renewing support agreements for network switches, Microsoft 365 services, and ServiceNow platforms, and authorizing a cybersecurity enterprise agreement with Palo Alto Networks. Additionally, the commission approved a one-year contract extension for bulk delivery services in Northern California.

The Commission meeting covered several informational and action items regarding Lottery operations. The Director provided a sales summary and discussed record-breaking contributions to public education. Action items included contract extensions for audit services with Weaver & Tidwell LLP, the Communications Effectiveness Tracking Study with Alter Agents, and marketing services with Quantasy & Associates. Additionally, the commission approved software renewals for Varonis, Adobe Campaign, and Microsoft, as well as a modernization project extension with Astute Solutions and a transition of Scratchers ticket delivery services to FedEx.

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.