You won't get rich selling lottery tickets... except this one time when you could earn $500,000
MotoMart manager Denise shows the bassoon she bought for her husband with the store's lottery win bonus. PHOTO: Edie Bresler
Want to be a retailer and sell lottery tickets for a living? You may not make a fortune with sales averaging approximately $15,000 a year in commissions, according to the Ohio Lottery's FAQ.
But there is one time when that commission could become huge, and that's when your store sells a ticket to a major winner.
This MotoMart sold one of the three winning tickets for a $640 Mega Millions jackpot. PHOTO: Edie Bresler
In March 2012, the jackpot for MegaMillions reached a record $640 million. One of three winning tickets was sold in this Motomart above, located in the small town of Red Bud (pop. 3683), Illinois.
READ MORE: Astounding $320 Million Lost In Unclaimed Lottery Prizes But Do Stores Keep The Hefty Commissions?
FKG Oil, a corporation that owns 73 other stores received the maximum bonus commission, which in Illinois is $500,000.
In an unusual gesture, they gifted $50,000 (1%) to be shared by the 7 workers in the store.
This store in Somerville, MA sold a winning $1,000,000 scratch ticket in 2009 and received a $10,000 bonus commission. PHOTO: Edie Bresler
Usually it's more practical for an existing store to start a lottery outlet, as the average retailer sells only about $250,000 worth of tickets each year, says the Ohio Lottery.
They will earn an average profit of 6.2% per annum.
But of course, the gamble that a major winner might hit your store may pay off and make it all worth while!
The studio in downtown Cleveland where the Ohio Lottery daily draws are broadcast. PHOTO: Mills James
Here's part of the FAQ on becoming an Ohio Lottery Retailer:
How much does it cost to become a Lottery retailer?
The upfront fees are minimal. You will have a $25 licensing fee which will be collected through your first Lottery account sweep. You will also be required to obtain a surety bond or if you provide on premise consumption of alcohol you will have the option of creating a liability deposit account with us that start at $500. A surety bond typically costs $10 -$15 per thousand dollars of coverage. Most retailers are required to carry a $15,000 bond.
What are my commissions and any additional bonuses?
Most new Lottery retailers will see an increase in store merchandise sales once they begin selling Lottery tickets. Lottery retailers will also earn 5.5% on each ticket sale and up to 1.5% on cashing winning tickets, for an average of 6.2%. The average Lottery retailer sells $250,000 in Lottery products earning approximately $15,000 a year in commissions. There are also bonus’s available for selling various winning online jackpot and instant tickets.
How long does the application process take?
The application process usually takes 4 to 6 weeks.
PHOTO: TOLEDO BLADE
Does my business have to be up and running before I apply?
No, you may apply for a Lottery license prior to your business being open. The Lottery will make every effort to have your business selling Lottery tickets when you open the doors.
Why do I need a bond?
The Lottery issues tickets on consignment, meaning you pay for the tickets after you sell them. The bond protects the Lottery against any monies due from the retail location. A bond can be purchased from most insurance agents. If you have any questions regarding this please contact the Ohio Lottery Licensing Department at 216-774-5600 for additional information.
Can I sell 24 hours a day?
The Online Gaming System shuts down between 4:00am and 6:00am for system maintenance and updates. You may continue to sell Instant games for those hours; however, the validating and cashing features will be unavailable.
Can I have KENO monitors installed at my convenience store?
Yes, KENO can be sold by any Ohio Lottery retailer and while KENO monitors are primarily installed in locations such as bars, restaurants, clubs and smoke shops; retailers can request to receive monitor(s).
Do I have to sell a minimum number of Instant games?
We recommend retailers to display 4 to 6 instant games. In most locations a retailer will carry between 20-40 games. However while not a requirement for KENO agents providing on premise consumption further discussion with your sales rep can help you determine the benefits of offering the full product line of instant and online games.
Does it cost me anything for marketing materials or ticket dispensers?
No, the Lottery provides POS and instant ticket dispensers. The Lottery will work with you in an effort to maximize sales in your establishment.
How long is the training class?
Sessions are generally 2-3hrs depending on size of the class and any previous familiarity with Lottery policies, procedures and equipment. Lottery trainers will contact you to arrange time and date when all licensing steps are complete. Trainings are performed at your local Regional office or at your location when feasible.
Ohio Lottery intern Laura Levitt dresses up a convenience store in Wickliffe. PHOTO: Cleveland.com
For more details see Ohio Lottery Retailer FAQ.