How Much Money Do Stores Make off Lottery Tickets?
People love the lottery. There is some indescribable magic in letting the fortune decide you about your life, betting and hoping for the best, and trying to predict the outcome of the game.
No wonder that many store owners are considering offering lottery retail services. That way, they can help their customers reach their dreams and make some money for themselves in the process.
If you’re thinking about adding the lottery to your store, you should consider the digital competition. Check out the Lotto247 review to see the advantages and drawbacks of this method of playing lotteries. It may help you adjust your store’s lottery marketing strategy!
If you’re thinking about becoming a lottery retailer yourself or simply want to dig more into the topic, you’ve come to the right place! This article will provide you with exhaustive information about how much money makes stores off lottery tickets and how the whole process of becoming a lottery retailer looks like. To find out more, keep on reading!
How Do Stores Make Money Selling Lottery Tickets?
First of all, you should understand how the whole process of making money on selling lottery tickets looks like.
The main point is that the purchasing doesn’t lay mainly in the lottery ticket itself. Instead, customers visiting your store to get a lottery ticket are much more likely to buy something else, too. Moreover, when they come to cash their winning ticket, they are very likely to spend some of the newly won money as well. That gives you two extra deals added to the lottery ticket.
Moreover, as a lottery retailer, you can also expect to make money on ticket commissions. Along with bonuses for selling winning tickets, a store can make around $15,000 a year on average. The amount of bonuses and commissions varies from state to state and sometimes also from game to game.
Generally, most states pay a 5% commission on all sales. For instance, in Florida, the commission is 5% on all lottery sales. However, Colorado, Georgia, and Indiana pay 6% for all sales, and Iowa pays a bit less than that – 5.5%. However, in Maine, North Carolina, and South Carolina, you can expect 7% commissions. The same goes for bonuses: in Florida, it will be around $20,000 a year, but in Georgia, even $50,000 per year. To make sure what bonuses and commissions are available in your state, don’t hesitate to look for the information on governmental websites or contact the authorities.
Bear in mind that sometimes retailers may receive extra commissions due to performance incentives and promotional offerings. Typically, the percentages are not set in stone, as they vary from one game to another; you can learn more details about those bonuses in the official retailer contracts.
How To Become a Lottery Retailer?
The first step to becoming a lottery retailer is considering whether your store is a good fit for this kind of service. What kind of customers do you have? Do they make impulse purchases, or are they used to their regular shopping preferences?
A perfect example of a store whose customers are a good fit is a gas station or a liquor store. However, at times, depending on clientele, it might also be bars or grocery stores. The key to success is always to define your target customers and be aware of who might come into your store.
After deciding to kick off with your new services, you should learn about specific license requirements to sell lottery tickets. Those requirements also vary from state to state and typically include business owners’ crystal clear criminal background or proper credit check history. Other specific requirements that you should get to know include security standards, as well as a particular storefront.
When it comes to your next step, you should apply online at the state’s lottery’s official website, where you will have to pay an application fee.
If your license is issued, you will get assigned a representative from the state lottery to help you with purchasing the necessary equipment and developing a system for the selling.
As you can see, becoming a lottery retailer is not that easy of a task. As with any governmental issue, it requires you to go through a long and tedious process.
However, at the same time, becoming a lottery retailer undoubtedly has a lot of financial advantages. In fact, it’s not only about the bonuses and commissions. As mentioned before, selling lottery tickets provides a possibility to draw in more customers. It may translate to having more traffic in the store and consequently making more revenue! Bear in mind that people tend to buy lottery tickets regularly. That means your customers will keep coming back to the store at least once or twice a week to get their lottery tickets.
The rules and requirements might be misleading, but the final effect will surely be worth it. If you have any more doubts regarding the exact amount of money you can get selling lottery tickets, you should search your state’s official information.