Do Stores Make Money Selling Lottery Tickets – How Much?

August 5, 2019 Blog 0

Do Stores Make Money Selling Lottery Tickets - How Much?

what do stores get for selling lottery tickets?
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

Whether you’re looking to become a lottery retailer in your state, or you’re already a lotto veteran – Playport can help revolutionize your lottery ticket sales process.
The Playport ™ Instant Win Game Platform is a way for you to minimize the square footage of lottery displays at your retail location while still reaping the rewards of being a lottery retailer.
Visit our website to learn more about Playport™, then ask your lottery rep about implementing our technology today!
Disclaimer: Table data based on best available data at time of writing. See your state’s official lottery retailer guidelines for more details.