California Lottery Seeks Agency for $400 Million Marketing Contract

SACRAMENTO, CA – The California Lottery has issued a request for proposals (RFP) for a lead marketing and advertising agency for a contract worth up to $400 million.

The winning firm will be tasked with developing a strategic plan and creative content to enhance the lottery’s consumer marketing efforts. This initiative aims to raise brand awareness, improve public perception, and maximize product sales, ultimately boosting lottery profits that support California public schools.

According to the RFP documents, the selected agency will need to provide capabilities in earned media strategy, public relations, crisis communications, event management, and cross-cultural outreach. The California Lottery is looking for innovative approaches to reach a diverse customer base.

Proposals for the contract are due on September 24. The lottery seeks an agency with at least 50 employees, annual revenues exceeding $20 million, and proper licensing to operate in California, including a state office.

The California Lottery sells its products at over 23,000 retail locations, including Scratchers, Powerball, and Mega Millions. During the 2023-24 fiscal year, sales surpassed $9.2 billion, resulting in more than $2.3 billion allocated to public education. Projections indicate sales for the 2024-25 fiscal year will continue to grow.

Decisions regarding the contracting process are expected by May 11, 2024, with the contract commencing two months later. Currently, David & Goliath acts as the California Lottery’s lead agency, supported by Horizon Media for media planning and buying. David & Goliath’s contract is set to expire on May 18, 2026.