California Code, Government Code - GOV § 8880.59

Any Lottery Contractor may be required by the Lottery to post, with the Commission an acceptable performance bond, letter of credit, or other form of security or guarantee of performance, using a surety acceptable to the Commission, in an amount sufficient to protect the Lottery in case of default by the contractor.  The Commission may require any Lottery Game Retailer to provide a fidelity bond which shall be payable upon order of the Commission.