How to Become a Lottery Retailer?

How to Become a Lottery Retailer?

Are you a convenience store owner exploring options to boost your bottom line? 

Selling lottery tickets is one of the ever-growing markets that helps C-Stores leverage increased footfalls and eventually boost revenue.

According to Research and Markets, “The lottery market in the US is forecasted to grow by $39.39 billion during 2022-2027.” 

Considering the lottery business, retailers can earn good commissions/incentives over the sales. In some states of the USA, you can earn bonuses or percentages on the sales of winning lotteries. 

Once you become a licensed lottery retailer, you can increase revenue and the number of customers. 


Customers who visit your convenience store to purchase the lottery are more likely to buy other items, too. Thus, there is a higher chance of greater profit. Additionally, you can increase the number of customers who regularly visit your store. 

There are two types of lottery tickets that you can offer:

  • Tickets specific to your state
  • Tickets applicable to multi-state games

Types of Lottery Programs

State-Level Lottery Program

Lottery programs are mainly supported by the state governments. 

To become a licensed lottery retailer, you must pay taxes and fees, follow regulations, and fulfill participation requirements provided by the state governments. The program operates almost similarly if you want to partner with a specific state or are willing to partner with multiple states.

3 main differences that you need to consider while considering the lottery programs offered by different states.

  • Distribution of revenue generated by games 
  • Bonus to retailers on winning tickets
  • Tax and administration considerations

Two state-level associations are primarily involved in managing the lottery programs across the different states of the United States. 

  • Multi-State Lottery Association (MUSL)
  • North American Association of State and Provincial Lotteries (NASPL)

Multi-State Lottery Association (MUSL)

MUSL is associated with 37 states of the USA and is responsible for organizing and managing lottery programs. It mainly works with the Powerball brand. Moreover, MUSL offers multiple branded lottery products to the members of the state lottery program. 

North American Association of State and Provincial Lotteries (NASPL)

NASPL is another organization that manages state-level lottery programs. It is connected with 52 lottery organizations across the USA. They help different lottery organizations create and communicate the industry’s best educational resources and practices. 

National Level Lottery Program

Let me clarify it first: The federal government does not support or organize lottery programs, so there is “no” official national-level lottery program. 

However, two large-scale lottery organizations hold a broad market presence across the USA. 

  • Mega Million
  • Powerball

Mega Million

State governments manage the operations of the Mega Million lottery brand, which involves managing finances, jackpot projections, and other administrative tasks.

To sell this brand’s lottery products, visit the websites of the respective state governments and get more insights. State governments centralize and control the Mega Millions lottery drawings. 


It is another large-scale lottery organization managed by the state governments. Lottery tickets from this brand are allowed to operate within the states. The Powerball lottery ticket holders have to redeem the tickets within the states, they are sold. The retailers need to visit the Powerball website to view the live draw.

How Convenience Store Retailers Can Boost Revenue with Lottery Ticket Sales

Define your Eligibility

Before applying for a lottery retailer, you need to analyze whether your customers are willing to buy lottery tickets. 

The lottery business usually flourishes with stores that offer impulse purchases and items of convenience, such as liquor stores, gas stations, retail stores, bars, restaurants, etc. Such stores are eligible to sell certain types of lottery tickets. 

Improve your Facilities

Some states expect retailers to have certain facilities at their stores to ensure the effective distribution of lottery tickets. 

For example, you might need to install security cameras at your premises or provide wheelchairs at the store for physically challenged people. 

Check the different criteria outlined by your respective state government and then fill out the application. This will help you save time and money.

Select your Games

For the lottery games, the retailers need to choose from multiple options provided by the state governments. 

Mostly, you need to pick from two options. Consider inexpensive stretch-off tickets or focus on expensive games like Powerball or Mega Million. Thus, explore all the options in detail and pick the most suitable one. 

Visit the State Government Lottery Website

The requirements for lottery retailers differ from state to state. Thus, it is essential to visit the state government lottery website and get clarity about the requirements. 

Some states allow only those businesses that are already up and running successfully. On the other hand, some states welcome new retailers and allow them to sell the lotteries. 

To become a licensed retailer of lottery products, you need to visit the state lottery website and understand the process thoroughly. It explains the compensation and benefits that retailers can avail. 

Some state government provides incentives for selling lottery, winning tickets, and cashing out winning tickets. So, check out that as well.

Choose your Lottery Type and Apply for It

Every state has its own set of requirements for applying for a lottery retailer. Some of them allow you to fill out online applications. These require you to pay a small fee and provide some information about your business. This process may involve a background check or credit check. 

The lottery website guides you on what information you need to provide to complete your application. 

Submit the Required Documents

To get the license, you need to submit the required documents to your state lottery organization, as mentioned on the website. They then do background checks, credit checks, and cross-checks of the submitted documents to proceed with the licensing process.

For example; a retailer with criminal history or poor credit may be disqualified from participation.

Follow Guidelines Shared by the State Government

If your application seems good for the state government, a representative will visit your premises. They ensure you meet all the criteria or requirements. They also provide training to you and your team for lottery management. 

Once your store meets all the requirements, the representative visits your location and installs the equipment you need to sell the lottery. 

Benefits of Becoming a Lottery Retailer

Commissions & Incentives

Retailers earn a certain percentage of commission and incentives based on lottery ticket sales. The incentive amount is roughly 5% to 6 % of the total ticket sales, and commission payouts are around 1% for the jackpots, depending on the pre-defined guidelines of state governments. 

Increased Sales

Considering the lottery program, retailers can increase sales. People who visit the store to purchase a lottery end up purchasing at least one item from the store.  

“95% of lottery customers purchase at least one additional item inside the store.”

Jeff Lenard

Vice President, Strategic Industry Initiatives 


Are you Struggling with Complex Lottery Management Processes?

Many retailers find it challenging to manage the lottery program effectively. You might be concerned about the correct counting of the lotteries before the sales, tracking the sales, analyzing daily revenue, etc.

Sometimes, you might end up spending more and earning less while managing the lotteries manually. 

Don’t worry! You can avoid this situation with Hisably, an advanced lottery management system that ensures effective, accurate, and automated lottery management. 

Hisably – An Automated Lottery Management System

Hisably is specifically designed to help convenience store owners who deal with the complex processes of lottery management that involve 

  • Calculating daily sales, incentives, and commissions
  • Managing employee shift 
  • Generating different reports 
  • Managing inventory of lotteries 
  • Tracking lottery ticket movement
  • Generating auto lottery orders, and more 

To explore more about Hisably, feel free to connect with our experts, who will provide you with an exclusive overview of the platform’s advanced features and functionality, which help you drive efficiency in your lottery management.

What Does Hisably Do?

Hisably a fully-featured C store back office software for managing your convenience store’s bookkeeping. Use it to manage lottery sales, monitor financial transactions, and get instant data on cash flow.

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