Become A Retailer FAQ
Can retailers choose which products to sell or how much to charge?
No. Retailers provided an optimal product mix for the retailer to maximize revenue based on the demographics of the stores’ customer base and traffic. Also, administrative law prevents retailers from selling tickets at a price other than what is established by the corporation, nor may retailers charge a surcharge to cash winning tickets.
How are retailers billed for tickets they sell?
One of the requirements for becoming a retailer is having an electronic funds transfer (EFT) bank account for Lottery ticket payment. The Lottery will “sweep” this account for drawing game tickets sold and scratch-off settlements. There are two billing options available to our retailers that determine how they are billed for their instant tickets. The Lottery has a billing option that bills retailers for scratch-off packs only after a substantial amount have been sold or after 60 days. In the event an instant game is closed and the retailer still has remaining inventory of this/these game(s), a credit will be issued for any scratch-off tickets from an activated pack which are returned. SInce a retailer is not billed for a pack of instant tickets until the pack is activated, there is no charge or credit for an unactivated pack of instant tickets when returned.
How does the Lottery determine whether it will grant a retailer license?
The Lottery licenses retailers to sell all of its products, including draw-style and scratch-off game tickets. In selecting retailers for licensure, the Louisiana Lottery Corporation considers the retailers’ financial responsibility, integrity, reputation, accessibility of the place of business or activity, security of the premises, whether sufficient retailers already exist to serve public convenience, and the projected sales volume. Because of the considerable investment of equipment and sales support the Lottery makes for retailers, potential retailers are scrutinized to ensure an adequate return on this investment in making the decision to grant or renew a license.
How many retailers sell Lottery tickets?
Approximately 2,900 businesses throughout Louisiana, primarily convenience stores, gas stations and grocery stores.
How much does it cost to become a Lottery retailer?
Applying for a retailer license involves a one-time $35 fee. There is no charge for yearly renewals. Retailers must also maintain an electronic funds transfer (EFT) bank account. Use of other equipment and training is provided free of charge, including ticket dispensers, ticket-printing terminal and supplies, customer play center, shipping charges and sales materials. Also, retailers are assessed a weekly $20 fee to cover communication costs. Since the sale of Lottery tickets is considered a government service, retailers are required to be compliant with the Americans with Disabilities Act. Any costs for store modifications necessary for compliance are the responsibility of the retailer.
Is there any minimum sales requirement to become a Lottery retailer?
Retailers are assigned a customer service representative who will assist them in developing a sales plan and goals, using proven sales techniques and area demographics. At the very minimum, retailers must maintain four scratch-off games on sale at all times and place an order for scratch-offs at least every 60 days. However, due to the considerable expense in servicing retailers, the Lottery evaluates retailers’ sales volume for return on investment and reserves the right to cancel, suspend, revoke or terminate retailer licenses for the insufficient sale of tickets.
Is there anything that would prevent a retailer from being able to sell Lottery tickets?
The following conditions prevent an individual or business from obtaining or renewing a Louisiana Lottery retailer license:
- Not being current in filings and payment of all taxes, interest and penalties owed to any political subdivision, including the Department of Labor, Department of Revenue and Taxation and the Secretary of State.
- Being convicted of any illegal gambling activity, false statements, false swearing or perjury or a crime punishable by more than 1 year imprisonment, a fine of more than $1,000 or both.
- Being a vendor or employee of the corporation or residing on the same household as an officer of the corporation.
- Knowingly having made a false statement of material fact to the corporation.
- Not being in compliance with the Americans with Disabilities Act.
What are retailers paid for cashing customers’ winning tickets?
The Lottery pays retailers up to 2 percent for cashing customers’ winning tickets up to the $600 maximum. This encourages repeat customer visits and spending, while earning retailers up to a 2 percent incentive. The incentive payment is calculated by determining the total number, as well as the dollar value of all winning Louisiana Lottery tickets validated and paid at each incentive level. Here is how the incentive is earned:
Retailers may not charge players a fee for cashing their winning tickets.
What are retailers paid in commission on Lottery tickets?
Retailers earn 5 percent commission on every ticket sale.
What businesses can become a Lottery retailer?
The vast majority of licensed retailers are convenience stores; however grocery stores, drug stores, liquor stores, bars, and restaurants also sell Lottery tickets. Outlets which provide one-stop shopping convenience or entertainment for adults work best for the sale of Lottery tickets.
Ticket purchasers must be at least 21 years of age. Gambling Problem?
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Frequently asked questions aboutbecome a retailer