Retailers are the backbone of the lottery industry.
If retailers didn’t sell the lottery tickets, few tickets would ever be purchased, as they would only be available in bingo halls and casinos run by the operator.
Retailers provide a wide-reaching pool of buyers that expands the selling power and ultimately the income power of operators and regulators.
With retailers located in central locations within communities and neighbourhoods, players can easily buy, check, and redeem lottery and scratch tickets—even in remote areas of a country.
There are many reasons why operators of convenience stores, gas stations, big-box stores, kiosks, and other sites become lottery retailers.
Monetary benefits are the number one reason. Retailers receive a commission on each ticket that they sell. They also receive selling bonuses for selling tickets that win major prizes, and incentives for hitting sales levels.
Non-monetary benefits include increased and returning customer traffic and sales, increased sales of other store merchandise, providing regular ticket sales to regular customers, contributing to and instilling a sense of community, and the support of free marketing and promotions from the operator.
For a retailer to become a lottery seller they must meet certain requirements.
First and foremost is the ability to become registered as a lottery retailer. This involves submitting to a background check, which includes both criminal and financial checks. They must also satisfy a high commitment to the standards of honesty, integrity, and financial responsibility.
Retailers must be vetted like any employee or worker within the gaming industry to avoid granting lottery licences to those who may have criminal backgrounds (for the potential of trying to cheat the operator or players) or questionable financial activities or status that may put them in a position of potential fraud (multiple bankruptcies, high amount of debt, drug or gambling addictions).
Retailers must at all times maintain the highest standards of honesty, trust, and ethical behavior with all lottery customers to maintain the integrity of games and products. For example, they must never sell tickets to anyone under the age of majority in their state or province. They must practice any required responsible gambling action as directed by the operator.
Retail employees must receive the required training as offered, provided by, or deemed mandatory by the operator and/or regulator. Retailers who fall short of these requirements are subject to corrective and/or disciplinary action, up to and including financial fines, and suspension or termination of retailer status.
Depending on the type of infraction, they might also be subject to prosecution as well. They are also required to maintain a minimum level of sales to remain a retailer while embracing an honest and trustworthy business operation.
Retailers must allow the operator and/or regulator or their representatives (legal and/or financial) unfettered access at any time to their premises and financial records and accounts to install, repair, maintain, or inspect all gaming equipment on premises, and to ensure proper security measures are in place and being followed. Financial records may also be inspected and questioned as part of a regular random audit or a targeted investigation.
For their services of marketing, selling, and redeeming tickets, retailers receive a commission on every ticket they sell, and selling bonuses or percentages on winning tickets and winning tickets of major prizes.
Many operators offer promotions and contests to retailers for increasing sales, improving selling techniques, enhancing ticket display, etc. These bonuses, promotions, and contests not only reward the retailer for participation in the lottery program, but ensure that tickets sales continue and increase.
So, the next time you buy a ticket, think about how you are not only purchasing a chance to win a lot of money, but also how you are supporting your local lottery retailer.
They not only sell dreams, but also a way of making those dreams come true.