The California State Lottery Act of 1984, enacted by initiative, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission and the Director of the California State Lottery, with certain limitations. The act defines a “lottery game retailer” as a person or organization with whom the California State Lottery Commission may contract for the purpose of selling tickets or shares in lottery games to the public and prohibits lottery tickets from being sold by a lottery game retailer unless the retailer has a certificate of authority issued by the lottery. The act directs the commission to promulgate regulations specifying the terms and conditions for contracting with lottery game retailers so as to provide adequate and convenient availability of tickets or shares to prospective buyers of lottery games. The act specifies that
none of its provisions may be changed except to further its purpose by a bill passed by a 2/3 vote of each house of the Legislature.
This bill would allow a business that is not a lottery game retailer to purchase lottery tickets from an authorized lottery retailer on behalf of individuals or groups of individuals who order those tickets through an Internet Web site or mobile application operated by that business. The bill would allow the business to charge the lottery retailer a percentage of its lottery compensation. By permitting the facilitation of lottery ticket sales through 3rd-party transactions, and the sharing of the retailer’s lottery compensation with a 3rd party, the bill would amend the act. The bill would declare that its provisions further the purposes of the act.