The Ohio Lottery Become a Retailer FAQs

Become a Retailer FAQs

How much does it cost to become a Lottery retailer?
The upfront fees are minimal. You will have a $25 licensing fee which will be collected through your first Lottery account sweep. You will also be required to obtain a surety bond or if you provide on premise consumption of alcohol you will have the option of creating a liability deposit account with us that start at $500. A surety bond typically costs $10 -$15 per thousand dollars of coverage. Most retailers are required to carry a $15,000 bond, but may be required to carry a higher bond based on Lottery sales. You may also be responsible for any internal wiring needs in regards to electrical outlets, if required. Once you are selling Lottery products there will be a $12 weekly communication charge.

What are my commissions and any additional bonuses?
Most new Lottery retailers will see an increase in store merchandise sales once they begin selling Lottery tickets. Lottery retailers will also earn 5.5% on each ticket sale and up to 1.5% on cashing winning tickets, for an average of 6.2%. The average Lottery retailer sells $250,000 in Lottery products earning approximately $15,000 a year in commissions. There are also bonus’s available for selling various winning online jackpot and instant tickets.

How long does the application process take?
The application process usually takes 4 to 6 weeks.
Does my business have to be up and running before I apply?
No, you may apply for a Lottery license prior to your business being open. The Lottery will make every effort to have your business selling Lottery tickets when you open the doors.

How do I start my Application?
The eApplication can be accessed by clicking {insert link}.
What information do I need to have available to start my application?
1)    Legal name of your business
2)    All owners names and email addresses with 10% or more ownership
3)    FID or EIN number (federal tax identification number)
4)    Business checking account information

What happens after I submit my eApplication?
The application will be forwarded to your local Regional Lottery salesperson who will then contact you to schedule an appointment to discuss equipment selections, bonding or the Liability Deposit program, Lottery policies, training and a criminal background check.  If your application is approved, you will receive an email notification with further instructions.

Why do I need a bond?
The Lottery issues tickets on consignment, meaning you pay for the tickets after you sell them. The bond protects the Lottery against any monies due from the retail location.

Where do I get a bond?
A bond can be purchased from most insurance agents. If you have any questions regarding this please contact the Ohio Lottery Licensing Department at 216-774-5600 for additional information.

Are there any other options beside a Surety Bond?
Yes if you are a KENO retailer and provide on premise consumption of alcohol you may qualify for the Liability Deposit program.  This program is a voluntary program that allows KENO retailers to submit a refundable deposit in lieu of a surety bond. The minimum deposit required is $500 and can increase by $250 increments.  The amount deposited will determine how much liability the retail location will be allowed to incur weekly.  The Ohio Lottery will monitor your weekly liability to ensure you have enough deposited into your account.  Weekly liability is defined as weekly online sales less weekly online cashes and online cancels. If you qualify your Sales Representative will collect your check, made payable to the Ohio Lottery Commission for the full deposit amount.

Why do I need to have a checking account?
A checking account is required for Financial Settlement of your weekly invoice. The Lottery will be authorized to make ACH withdrawals or deposits each week. The amount of the weekly withdrawals or deposits will be equal to the amount shown on your weekly invoice. Adjusting entries to correct errors are also authorized. Necessary?

How do I fill out the W-9?
The legal name of the business goes in the box labeled “Name”. The business name (DBA) goes in the Box labeled “Business name”. Check the appropriate entity and write in your address. Place the appropriate Taxpayer Identification Number in the appropriate box. Sign and date the form.

Can I use the Liquor Control criminal background check I just did?
No, Ohio law requires that different offense criteria be used to determine if an applicant is eligible for obtaining an Ohio Lottery license than the criteria used by the Ohio Liquor Control Commission.

Do all the partners in the business need to be on the Lottery License?
All business principles that own 10% or more of the business must be listed on the application and have background checks completed.

Do I need to carry Insurance on Lottery equipment?
It is not a requirement, but it is highly recommended.

Can I sell 24 hours a day?
The Online Gaming System shuts down between 4:00am and 6:00am for system maintenance and updates. You may continue to sell Instant games for those hours; however, the validating and cashing features will be unavailable.

Can I have KENO monitors installed at my convenience store?
Yes, KENO can be sold by any Ohio Lottery retailer and while KENO monitors are primarily installed in locations such as bars, restaurants, clubs and smoke shops; retailers can request to receive monitor(s).

Do I have to sell a minimum number of Instant games?
We recommend retailers to display 4 to 6 instant games. In most locations a retailer will carry between 20-40 games. However while not a requirement for KENO agents providing on premise consumption further discussion with your sales rep can help you determine the benefits of offering the full product line of instant and online games.

Can I sell Charitable Bingo games and still sell Lottery?
Yes, however charitable game sales require a separate license issued by the Ohio Attorney General.

Does it cost me anything for marketing materials or ticket dispensers?
No, the Lottery provides POS and instant ticket dispensers. The Lottery will work with you in an effort to maximize sales in your establishment.

How long is the training class?
Sessions are generally 2-3hrs depending on size of the class and any previous familiarity with Lottery policies, procedures and equipment. Lottery trainers will contact you to arrange time and date when all licensing steps are complete. Trainings are performed at your local Regional office or at your location when feasible.

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