Do Stores Make Money Selling Lottery Tickets – How Much?
Do Stores Make Money Selling Lottery Tickets - How Much?
Thinking of becoming a lottery retailer? You might be wondering, “what do stores get for selling lottery tickets?” It’s a great question. We’ll tackle it today. We’ll tell you what you can expect out of this deal and give you the state-by-state specifics.
Do Stores Make Money Off Lottery Ticket Sales?
First things first: in reality, how do stores make money selling lottery tickets? It’s all about sales, commission, and bonuses. The purchasing doesn’t begin and end with lottery sales alone, though. About 95% of the time, visitors coming in to purchase lottery tickets will buy something else from your store. If they cash in a winning ticket, they’re likely to spend some of that money in your store.Do Stores That Sell Winning Lottery Tickets Get Money?
Indeed, bonuses are available to retailers who sell winning lottery tickets. These bonuses vary from state to state and even from game to game.How Much Do Lottery Retailers Make?
On average, a store makes about $15,000 annually in the form of ticket commissions and bonuses. Further, how much do stores get for selling winning lottery tickets? It varies. The table below reveals participating states’ lottery seller commission. It also shows winning jackpot ticket bonuses.Lottery Sales Commission by State
Alabama, Alaska, Hawaii, Nevada, and Utah do not participate in the lottery and have not been included in this list. In Wyoming, the retailers are selected. That state has also not been included. This chart information is largely based on Mega Millions and/or PowerBall games and jackpot winnings.States are listed alphabetically. You’ll find retailers’ commission percentages on instant tickets sold at their establishments (not including online sales.) You’ll also see bonuses that accompany the winning jackpot tickets sold at their establishments. The standard retailer commission rate is 5% of sales. The commission does not come out of the winner’s prize.
| State | Commission on Ticket Sales | Winning Ticket Bonuses |
| Arizona | 6.5% on all sales | $50,000 on jackpot ticket |
| Arkansas | 5% base commission | 1% of prize; max bonus $50,000 |
| California | 4.5 – 6% | ½ of 1% of prize; max bonus$ 1 million |
| Colorado | 6% | $50,000 on jackpot ticket |
| Connecticut | 5% on every $1 in lottery sales | 1% of prize |
| Delaware | 5% on all games allowed by license | $10,000 on jackpot ticket |
| Florida | 5% on all lottery sales | $20,000 on jackpot ticket |
| Georgia | 6% on all sales | $50,000 on jackpot ticket |
| Idaho | 5% on all sales | $20,000 on jackpot ticket |
| Illinois | 5% on draw games and instant tickets | 1% of prize |
| Indiana | 6% on draw and scratch-off sales | 1% of prize; plus, extra bonuses |
| Iowa | 5.5% on ticket sales | $10,000 on jackpot ticket |
| Kansas | 5% selling commission | $10,000 on jackpot ticket |
| Kentucky | Based on sales goals/performance | Based on sales goals/performance |
| Louisiana | 5% on every ticket sale | Min $25,000 or 1% of LA’s contribution |
| Maine | 7% on instant tickets | Up to $50,000 on jackpot ticket |
| Maryland | 5.5% on ticket sales | 1/10th of 1% of jackpot ticket |
| Massachusetts | 5% on sales | 1% on prizes claimed |
| Michigan | 6% on ticket sales | $50,000 bonus commission for jackpot |
| Minnesota | 5.5% on ticket sales | 1% bonus |
| Mississippi | N/A (sales set for December 2019) | N/A (sales set for December 2019) |
| Missouri | 5 cents for every $1 sold | $50,000 on jackpot ticket |
| Montana | 5% sales commission | None (quarterly additional commission) |
| Nebraska | 5.5% on ticket sales | 1% on jackpot ticket up to $50,000 |
| New Hampshire | 5% sales commission | 1% on NH games only |
| New Jersey | 5% on sales | $30,000 on jackpot ticket |
| New Mexico | 6% on each ticket sold | $50,000 on a jackpot ticket |
| New York | 6% with no cap | None |
| North Carolina | 7% sales commission | $50,000 on a jackpot ticket |
| North Dakota | 5% commission | None |
| Ohio | 5.5% on every sale | Up to 1.5% of jackpot ticket |
| Oklahoma | 6% sales commission | Various bonuses |
| Oregon | 5-10% | 1% of prize |
| Pennsylvania | 5% commission rate | Various bonuses |
| Rhode Island | 5-8% | 1% of prize |
| South Carolina | 7% sales commission | Up to $50,000 (cap) |
| South Dakota | 5% | Various bonuses for high tier winning |
| Tennessee | 6.5% of sales | $25,000 on a jackpot ticket |
| Texas | 5% commission on all sales | 1% of jackpot; $1 million cap |
| Vermont | 5.75% sales commission | 1% of jackpot; $30,000 cap |
| Virginia | 5% | 1% of prize |
| Washington | 5% commission | Various bonuses |
| West Virginia | 7% commission | 1% of jackpot; $100,000 cap |
| Wisconsin | 5.5-6.25% | 2% of jackpot; $100,000 cap |
Note: Occasionally, there will be promotional offerings and performance incentives. Retailers may earn extra commissions. Further, when winning tickets are cashed at your store, you can receive bonuses. These percentages are not mentioned here and vary from game to game. For states with “None” in the bonus columns, their official retailer contracts may convey more details about bonuses.
Retailers and Lottery Ticket Sales: The Benefits
How do stores make money selling lottery tickets? We hope you understand the commission/winning ticket bonus structure now. It’s not going to support your entire business, but the incentives are often beneficial to you. The real money you make will come from the additional foot traffic the lottery can draw.Improve Your Instant Win Game Experience Today
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Disclaimer: Table data based on best available data at time of writing. See your state’s official lottery retailer guidelines for more details.
