California State Lottery
California State Lottery – Easy overview
What it is
- The California State Lottery is California’s state lottery. It started after voters approved Proposition 37 in 1984 and began operating in 1985.
- Its purpose is to raise money for public education without increasing taxes. It offers Scratchers and draw games, with some money also used to administer and run the lottery.
How money is used
- Lottery revenue is designed to be shared between prizes and public education, with a portion also used for administration.
- The original rulebook required at least 34% of revenue to go to public education and at least 50% to prizes (together aiming for 84% back to the public via prizes and education). Up to 16% could cover administration.
- In 2010, Assembly Bill 142 changed allocations to boost education funding, aiming for at least 87% of lottery revenues to go back to the public as prizes or education. It also set targets to ensure continued growth in education funding, including a requirement that a large share of revenues go to prizes each year.
Who runs it
- The Lottery is overseen by a five-member Lottery Commission, appointed by the Governor. The commission oversees the Lottery and the Director, and reports publicly. Meetings are open to the public.
History at a glance
- The Lottery Act and creation followed a rapid build-out of the program in the mid-1980s.
- Keno was challenged in the 1990s and replaced with other games.
- California joined Mega Millions in 2005 and launched Powerball in 2013.
- The state moved to a new, larger headquarters in 2011.
- California’s Mega Millions prizes are parimutuel (prizes vary with ticket sales and the pool); California does not offer the Megaplier option. Powerball in California also uses a parimutuel approach for non-jackpot prizes.
Current draw games (in-house)
- Daily 3: Pick three digits (0–9). Costs $1 per play per draw. Two draws per day (1:29pm and 6:59pm). Play types include straight and box.
- Daily 4: A pick-4 game, $1 per play, with daily drawings.
- Daily Derby: A mock horse-race game where players pick horses and a race time. Costs $2 per play per draw; daily drawings.
- Fantasy 5: Choose five numbers from 1–39. Tickets can include up to five sets of numbers and can be played across up to 12 drawings. Draws are evenings; prizes cover matching 2–5 numbers.
- SuperLotto Plus: Pick five numbers (1–47) plus a Mega Ball (1–27). Starts with a multi-million jackpot; cash option is available; draws are midweek and on Saturdays.
- Hot Spot: Quick-draw keno-style game with 1–10 spots chosen from 1–80. Draws occur frequently (every few minutes) throughout the day. Wager amounts range from $1 to $20, with fixed prizes and a prize fund that adjusts if many winners occur.
Multi-state games
- Mega Millions: California participates with parimutuel-style non-jackpot prizes. CA began as a Mega Millions member in 2005. California does not use the Megaplier.
- Powerball: California launched Powerball in 2013. Non-jackpot prizes also follow a parimutuel structure here. Powerball draws are weekly in California.
Former and special games
- Little Lotto (eventually became Fantasy 5), Decco, and Topper were older draw games that no longer operate.
- Raffles were held in 2007 and 2008 but did not continue.
- The Lottery ran two TV game shows: The Big Spin (ended 2009) and Make Me a Millionaire (ended 2010). Winnings from these shows were integrated into prize pools or other games after cancellation.
Claiming prizes
- Prizes under $600 can be claimed at a Lottery retailer or the Lottery office.
- Prizes of $600 or more must be claimed with the Lottery using a claim form.
- Most prizes are paid in a single lump sum. Large prizes may be subject to federal withholdings (commonly 24% or 33% depending on tax forms and the prize). California does not tax California Lottery winnings, but winnings from other states may be taxed.
Claim period
- Most prizes must be claimed within 180 days of the draw or the end of the game.
- Mega Millions jackpots have a 1-year claim period in California due to state law.
- Any unclaimed prize money goes to California’s public education fund.
Prizes and payments
- For non-jackpot prizes, payments are typically made in a single lump sum. Mega Millions, Powerball, and some other games offer cash options or annuities for jackpots; California’s rules follow the state’s distribution and tax guidelines.
- California prize payments and tax treatment can differ for winnings from non‑California games; state taxes on those winnings can apply.
TV and broadcasts
- Lottery drawings are televised, with schedule varying by game. Local stations air the drawings in California.
Controversies
- In 2022, a former lottery investigator published a book alleging misused funds and other issues. Audits also cited instances of misspent funds. The discussions continue, with ongoing oversight and reviews of how education funds are managed and allocated.
See also
- Gambling in California
External links
- Official California Lottery website is calottery.com for current games, rules, and prize information.
This page was last edited on 1 February 2026, at 20:36 (CET).