Understanding California’s Annual Liquor License Priority Drawing
If you’ve been scouting for a new on sale or off sale general license to open or expand a bar, restaurant, or spirits retail business in California, then the annual lottery drawing offered by the California Department of Alcoholic Beverage Control (ABC) is one of the most important windows you’ll want to understand. As a license broker stepping into this process with you, here’s a walkthrough of how it works and how you can position yourself for success.
What is the priority drawing?
The ABC uses what’s called a “priority registration drawing” to allocate brand new or inter-county transferred on sale or off sale general licenses (types 21, 47) when there are more qualified applicants than available slots in a given county. Essentially, if you want a brand new general license for beer, wine, and distilled spirits or you’re transferring one from one county to another, you can only access that option during the priority drawing process.
When does the application period occur?
Each year, the application window opens in September and the drawing is held in October. It’s critical to submit your registration application during that period with the correct form and the required fee.
How the drawing itself works
Once applications are reviewed and the number of applicants exceeds the number of new licenses available in a county, ABC holds a randomized drawing of participants. Each applicant receives a ranking number, similar to drawing a number in a raffle. If your ranking is within the number of licenses available, for example you rank fourth and the county has five new licenses, you become a “priority winner.”
After the drawing, winners are notified and must move forward by submitting the full formal license application within a set deadline. The formal application is subject to ABC’s standard background checks, zoning checks, and local investigations. Winning gives you priority position but does not guarantee issuance of the license.
If you don’t win, what then?
If you participate but your ranking falls outside the available license slots, you’re considered an “unsuccessful drawing participant.” In that case, the application fee is automatically refunded (minus a $100 service charge) within 90 to 120 days. One helpful benefit is that you retain your ranking, so if a winner fails to timely file their formal application or is denied, the next person in the ranking order is offered the slot. It’s worth staying in the loop even if you didn’t win outright.
What you should do now if you’re preparing to apply
- Mark your calendar for the second Monday in September for the coming year and track the full filing window.
- Choose the correct priority drawing form and pay the applicable fee when you submit. Ensure all documentation is timely and correct. If your priority application is incomplete or incorrect it will be disqualified.
- Prepare the full business plan and license application materials in parallel. If you are drawn as a winner, you’ll have 90 calendar days from notification to submit your full application.
- Confirm eligibility and residency requirements, including proof of California residency such as a CA ID or utility bill.
- Consider the risks and timeline. Even after being selected in the drawing, you must still satisfy the full licensing investigation, zoning and local rules, city or municipal requirements, and ABC approval. The earlier you begin navigating those, the better.
How License Locators adds value for you
As your broker, we help ensure you meet the filing window, submit the correct form, document proof of residency, track the drawing results, and file your full application if selected. We also monitor county specific availability, guide you on strategy such as whether to apply for a new license or purchase an existing one, and follow up on next in line replacements if someone ahead in ranking drops out. Our goal is to transform the lottery style chance into a well prepared opportunity.
In short, the annual priority drawing is a one time each year window for new general licenses in California. It’s randomized, time sensitive, and just the start of your journey toward approval. If you’d like our help to get ready for this cycle in the next year’s drawing, identify your target county, assess license availability, and build your application materials, contact us and we’ll get going.
