How the California Lottery Builds Trust and Why

Alva V. Johnson, California Lottery Director at California State Lottery

Alva V. Johnson, California Lottery Director at California State Lottery

Working for a lottery agency, things are going to come at you from all angles with people trying to exploit new ways to game the system or otherwise cheat. Cyber security is paramount, but like any other outfit in both the public and private sectors, we must consistently evaluate other areas for potential vulnerabilities.

It is easy to recognize the value of those who work in a security or investigative capacity when you do what we do. California State Lottery is a multi-billion-dollar public agency that provides entertainment for its customers and a chance at riches, and our mission is even more significant and impactful than that. Our sole mission is to generate much-needed supplemental funding for public education in California. That’s why we exist.

Overseeing such a critical operation, we realize that everything we do hinges on one word – integrity. Everyone from our players to the larger public, and even our own employees must trust that what we do is true and ethical. It is an exceptional and shared responsibility.

We rely upon the vigor of the Lottery’s Security and Law Enforcement Division (SLED) and the unit’s readiness. They must consistently assess and protect against a wide spectrum of potential schemes.

Some people are surprised to learn there’s an entire lineup specifically dedicated to preserving the soundness of the operation. A lottery is nothing without the ability to ensure the legitimacy of its games, and our SLED team is involved every step of the way.

Purchase At Retail

• You’re going to feel SLED’s influence first at any of the Lottery’s 23,000 retail partner locations. No one is approved to sell Lottery products without first being screened and vetted. The process includes running fingerprints and Department of Justice background checks for prior felonies and a history of gambling or financial problems.

• Retailers know they must properly account for every ticket that is supplied to them and sold.

• SLED ensures the safety of our retail partners by working with law enforcement if Lottery tickets are reported stolen. Cases might involve a rogue clerk. Organized shoplifters who team up to distract store employees while a buddy steals tickets could victimize businesses. We’ve also seen the emergence of smash-and-grab robbers.

“Overseeing such a critical operation, we realize that everything we do hinges on one word, integrity. Everyone from our players to the larger public, and even our own employees must trust that what we do is true and ethical”

• The unit also conducts routine undercover investigations as part of our Retailer Compliance program. Retailers cannot sell Lottery tickets to minors and small prize claims must be correctly paid onsite. We are proud to report 99.9 percent compliance.

The Integrity of Our Games

• Every Lottery employee must also pass a SLED-led comprehensive background check before being allowed to work here.

• Furthermore, SLED is involved in making sure that all Lottery facilities are secure. That entails especially sensitive areas like the Draw Room where winning numbers are first revealed.

• There is a highly developed list of procedures one must follow before gaining access.

• All of the draw equipment is maintained for accuracy. Even the weight of each bouncing ball is measured.

• An independent, third-party auditor is among those present for every single draw.

• The Draw Management Unit also observes the testing of security features on new Scratchers® that are being developed.

Claiming A Large Prize

• Big winners should also expect that they’ll hear directly from a SLED investigator when claiming a considerable prize, of which we are proud to have many.

• The lifecycle of a claim doesn’t end there. Presumed winning tickets are then elevated to Lottery Headquarters for a forensic analysis, where tickets and ticket claims are vetted and gauged for accuracy before payout.

• People sometimes try to counterfeit tickets by pasting parts of one ticket on top of another. They might try to change numbers on a ticket or scratch out the name of someone else who wrote on the back of a ticket to claim ownership. We won’t go into detail, but you bet we have high-powered microscopes and other tools to weed out fraud.

We also work with other lottery jurisdictions to stay on top of trends. SLED Assistant Deputy Director Steve Combre recently shared that the lottery industry as a whole is good with security measures involving the tickets themselves. “It is pretty hard to counterfeit or fake a ticket,” he said. He also underscored that with the advances in technology, “it is more important than ever that SLED is diligent in ensuring the integrity, security, honesty, and fairness in the operation of the California Lottery.” I wholeheartedly agree.

Growing Outside Influence

Even non-players might fall under the SLED umbrella of influence.

• Lottery-related scams are growing. SLED hears from victims who have been conned out of their money after connecting with scammers in person, over the phone, or increasingly online. We work with other jurisdictions to help bring perpetrators to justice.

• We are also seeing a growing number of lottery ticket resale services. These ticket buyers – whose platforms are either online or via a mobile app – are not authorized or regulated in the state of California. We work to inform our players and retailers about the risks of purchasing from anyone not affiliated with the Lottery.

The California State Lottery is a results-driven organization that contributes over $1 billion to public education every year. The agency is unique in that we rely on ticket sales rather than public funds to operate. It is a tremendous assignment founded on trust. That goal is achieved when supported by a steady commitment to integrity and an ever-watchful eye toward security.