The California State Lottery Act, enacted by the voters by initiative in 1984, was passed by 58 percent of the electorate. The initiative also amended the State Constitution to prohibit "casinos of the type currently operating in "Nevada and New Jersey," and required that at least 34 percent of lottery revenues go to the public education.
The California State Lottery is operated and administered by the Lottery Commission which is composed of five members appointed by the governor, and meets quarterly and as needed. The Lottery's Security Division and independent auditors maintain the integrity of the games. The Security Division conducts background checks on employees and vendors and monitors complaints against vendors. Retailers' contracts may be terminated for just cause, such as fraudulent activity. In general however, the Lottery's primary motivation is to expand its vendor base and market, not decrease it through enforcement actions.
In 2008, State Legislation was passed to modernize the State Lottery and make it more profitable, as well as arrange for borrowing from the Lottery to fill the budget shortfall. While the State Legislature passed the Constitutional amendments, these items must appear on a future statewide ballot for the required approval of the electorate.
The following related items are provided to alert and help educate the voters.