The Ohio Lottery Become A Retailer FAQs

Become A Retailer FAQs

How much is this going to cost me up front and weekly?

The upfront fees are minimal. You will have a $25 licensing fee which will be collected through your first Lottery account sweep. You will be required to obtain a surety bond. A bond typically costs $10 through $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 past Lottery sales amounts. You may also be responsible for any internal wiring needs in regards to electrical outlets, if required.

Once you are up and selling Lottery products there will be a $12 weekly communication charge.

How much do I make and are there bonuses?

Most new Lottery retailers will see and 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 tickets for about $15,000 a year in commissions.

There are also bonus’s available for selling various winning jackpot tickets.

How long will this take to get up and running?

The application process usually takes 4 to 6 weeks.

What paperwork do I need to have to complete the Application?

You will need to have a voided check or bank letter showing your checking account information. You will need to know your legal name and FID number. If you are applying for KENO you will also need a copy of your liquor license.

Can you explain the whole application process?

You will complete the application and turn it into the regional office. You will be required to have your criminal background check performed. The application will be forwarded to the Lottery central office for processing. Once the background check is received the application will be approved or denied based on the results. Once your application is approved, the Lottery will mail you a letter with the bond requirements. Once your bond is received the Lottery will install your equipment and train you on how to use the equipment. You will then be ready to sell Lottery tickets.

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.

How do I get my background check performed?

The Ohio Lottery has WebCheck units available at 5 locations throughout Ohio where you can go to have the background check completed at no additional cost to you. Your sales representative can assist you in determining which location would be best for you. If you prefer, you can go to any WebCheck provider in Ohio but you must pay the fee for the background check at that location. To find a WebCheck provider go to: http://www.ohioattorneygeneral.gov/Services/Business/WebCheck

Why do I need a bond?

The Lottery issues tickets on consignment, meaning you pay for the tickets after you sell them. Because the Lottery allows tickets to be paid for after they are sold there is a need for the State to have a way to collect on any monies due in the event of a non-payment. The bond protects the state against any monies due to the Lottery in regards to the retail location.

How much is a bond?

The cost of a bond is determined by many different factors. Individual credit scores are a major factor. The average person should be able to purchase a bond for $10 - $15 dollars per thousand dollars of coverage.

Where do I get a bond?

A bond can be purchased from most insurance agents. If you have any questions regarding this please consult with your Lottery Sales Rep and they will be able to provide you more information on this subject.

How long is the training class?

Sessions are generally 2-3hrs depending on size of class and any previous familiarity with Lottery policies and procedures. Lottery trainers will contact you to arrange time and date when all licensing steps are complete. Trainings are performed at your local regional office.

How do I fill out the W-9?

The legal name 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.

Where can I obtain a criminal background check and how much does it cost?

See how do I get my background check performed.

Why can’t you just use the Liquor Control criminal background check I just did?

The Ohio Lottery Commission must receive a report mailed directly to us from the WebCheck provider. In addition, Ohio law requires that different offense criteria is used to determine if an applicant is eligible for obtaining an Ohio Lottery license than the criteria used by the Ohio Liquor Control Commission.

Does it cost me anything for the marketing materials, equipment, display pieces or tickets?

No, the Lottery does not charge a fee for materials, equipment or display pieces. The Lottery will work with you in an effort to maximize sales in your establishment.

You will pay for the Lottery tickets once you sell them.

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 application process takes 4 to 6 weeks. The Lottery will make every effort to have your business selling Lottery tickets when you open the doors.

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?

KENO can be sold by any Ohio Lottery retailer, however KENO monitors will only be installed in age-controlled locations, such as bars, restaurants, clubs and smoke shops.

What happens if I get robbed and they steal Lottery tickets, am I responsible?

If a retailer is the victim of a robbery, they receive credit for tickets taken during the robbery. Retailers are required to deactivate their tickets at the end of the day which puts their tickets in a status that will not allow them to be cashed if taken during a burglary. If the tickets were not deactivated and were cashed, the retailer will not receive credit for tickets stolen during a burglary.

Do I have to sell a minimum number of Instant games?

Yes, our Traditional retailers must display a minimum of 8 instant games. Most instances a retailer will carry between 20-40 games.

KENO agents do not have to carry instants. However, it is strongly encouraged that you do in order to maximize your commissions.

Can I have Tic Tac Fruit machines and sell Lottery?

Tic Tac Fruit machines are considered “skill” games at this point. The “skill” game issue is under constant review by state agencies. Lottery retailers are cautioned that if their use of these machines results in a criminal conviction for them, they will lose their Lottery license as a result.

Can I sell Charitable Bingo games and still sell Lottery?

Yes, your Charitable Gaming License and your Lottery license are completely separate entities.

Do all the partners in the Business need to be on the Lottery License?

Yes, all business principals that own 10% or more of the business must be listed on the application.

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