A Review of the Organization, Operation and Performance of the California State Lottery (Follow-up Report)

Report #94, May 1989

OVERVIEW

This letter report addresses the convoluted situation that has revolved around unclaimed, low-tier Lotto and instant game prizes. At various points the State Lottery Commission has adopted and/or modified policies to sweep unclaimed prizes into, first, the Education Fund and, second, into the game prize fund.

The Commission’s letter report assesses the Lottery’s policy and urges changes. Specifically, the Commission recommends that the Lottery Act be amended to clarify language related to unclaimed prize moneies, and to provide adequate time for public input into the Lottery Commission’s rule-making process.