The Birth of the California Lottery
Californians voted to create the state lottery in November 1984 through Proposition 37, the California Lottery Act. The first tickets went on sale in October 1985, and the lottery generated over $1 billion in its first year alone. The act mandated that at least 34% of revenue go to public education — a requirement that remains in effect today.
Games Available Today
California offers a diverse slate of games. The flagship state game is SuperLotto Plus (5/47 + 1/27), which offers better odds than the national games. Multi-state jackpot games include Powerball and Mega Millions. Daily games include Daily 3 and Daily 4 (digit games with multiple draws per day) and Fantasy 5 (a daily 5/39 game popular for its favorable odds). Our complete California games guide covers the rules, odds, and draw schedules for every game.
The Pari-Mutuel Difference
California is the only major lottery state that uses pari-mutuel prizes for nearly all prize tiers. This means prizes vary based on ticket sales and the number of winners in each draw. The system ensures the lottery never pays out more than it takes in, protecting the education funding stream.
Where the Money Goes
Since 1985, the California Lottery has contributed over $40 billion to public education. Revenue is distributed to K-12 schools, community colleges, the California State University system, and the University of California based on enrollment. The lottery typically generates around $1.5-2 billion annually for education, supplementing (not replacing) general fund education spending.
Playing Smart in California
California players benefit from no state income tax on lottery winnings — one of the few states with this perk. Our tax-free states guide explains the details. For odds-conscious players, Fantasy 5 offers some of the best odds of any lottery game in the country, while SuperLotto Plus provides a middle ground between state and national jackpot games.