The Missouri Lottery offers residents and visitors a chance to win big while also generating funds for public education in the state. Since 1986, the lottery has awarded over $7 billion in prizes and raised more than $6 billion for education programs in Missouri.
If you own a business in Missouri, becoming a lottery retailer can be a great way to increase foot traffic and make extra revenue. The lottery is always looking to expand its network of retailers across the state. Here is what you need to know about the requirements and process for becoming a Missouri lottery retailer.
What are the requirements to become a Missouri lottery retailer?
The basic requirements to become a Missouri lottery retailer are:
– You must have a permanent retail business location in Missouri. Temporary locations or moveable carts/stands are not eligible.
– Your business must be open for at least 20 hours per week.
– You must have all required business licenses and be compliant with all applicable laws and regulations.
– There must be adequate floor space to accommodate a lottery terminal and self-service ticket dispenser.
– The store location and general security measures must meet lottery approval.
– You must be willing to prominently display all lottery point-of-sale advertising.
– Employees who will be selling lottery products must be at least 18 years old.
– You must agree to lottery account settlement and collection policies.
– You must complete a background check form for all owners and officers of the business.
In addition to these requirements, the Missouri Lottery will evaluate factors such as the traffic count for your store location, proximity to other lottery retailers, general reputation and appearance of the business, and expected lottery sales potential. Meeting all the basic requirements does not guarantee your business will be approved as a retailer. The lottery aims to select retailers who will help maximize lottery profits that support Missouri education programs.
What is the process for becoming a Missouri lottery retailer?
The process for becoming a certified Missouri Lottery retailer involves several steps:
1. Submit a retailer application package
You can obtain a retailer application package by contacting the Missouri Lottery retailer hotline at 1-800-542-3409 or downloading the forms from the lottery website. The package includes the retailer application, electronic funds transfer authorization, background check release forms, and required attachments like a photo ID, tax ID, and business license.
2. Pass a background check
The lottery will conduct background checks on the business as well as all owners, officers, and managers listed in the application. Disqualifying factors can include certain criminal convictions or tax delinquency.
3. Complete new retailer training
If approved, all employees who will sell lottery tickets must complete new retailer training. This covers how to operate the lottery terminal, process tickets, perform age verification, and more.
4. Install a lottery terminal
The Missouri Lottery will install a lottery terminal and printer along with a ticket self-service dispenser. You must have adequate space and electrical connections for the equipment.
5. Stock scratchers and draw game tickets
You will receive an initial shipment of instant scratchers and draw game tickets like Powerball to sell when your location opens. The lottery will provide point-of-sale displays and advertising.
6. Maintain lottery sales requirements
There are weekly sales minimums that must be met based on your retailer tier. The lottery monitors sales activity closely. Consistently failing to meet requirements can result in probation or termination of your retailer agreement.
The entire application approval and setup process typically takes 4-8 weeks. Many steps are involved because the lottery must properly vet and train retailers while also installing equipment. Once your location is up and running, maintaining all lottery procedures and generating strong ticket sales are key to remaining an active retailer. It can be a significant extra source of revenue if you have a good location and marketing efforts.
What are the costs involved in becoming a Missouri lottery retailer?
There is no initial cost to become a Missouri lottery retailer. The lottery provides all necessary equipment like the terminal and ticket dispensers at no charge. Retailers also do not have to pay for their initial ticket inventory.
The lottery makes its revenue by earning a percentage of sales from retailers. The retailer commission on Missouri lottery tickets is:
– 5% for online/draw game ticket sales
– 6% for scratchers ticket sales
Retailers can also earn 1% in cashing bonuses when customers redeem winning tickets of $600 or less at their location.
The only ongoing costs for retailers are:
– Maintaining a surety bond to cover any potential lost or stolen tickets. The bond amount ranges from $500 to $50,000 depending on sales volume.
– Telecommunication costs for the lottery terminal. This is usually just a standard phone line.
– Any optional advertising or promotions the retailer wishes to do to increase awareness and lottery traffic.
Compared to other states, Missouri offers retailers an excellent commission rate and incentive program. The lottery equipment, security, accounting, marketing, and operational support is all provided at no upfront cost to retailers. This helps minimize risks and makes it easy to begin generating lottery revenue.
What are the pros and cons of becoming a Missouri lottery retailer?
**Pros**
– Steady source of extra income through retailer commission on ticket sales
– Increased customer traffic and sales for other store merchandise
– Advertising and promotions provided by the lottery at no cost
– Security of working with an established business partner in the Missouri Lottery
– Training and support from the lottery on procedures, technology, and marketing
– Ability to offer customers convenience through lottery products
– 1% cashing bonus on validating winning tickets up to $600
**Cons**
– Meeting minimum sales requirements to maintain retailer agreement
– Potential for shrinkage or theft of lottery products
– Requirement to prominently display lottery point-of-sale advertising
– Risk of terminal malfunctions or connectivity issues
– Staff time spent on lottery administration and reporting
– Pressure for continuous sales growth to maximize compensation
– Suspension or termination if lottery procedures and security aren’t followed
The benefits tend to significantly outweigh the drawbacks for most lottery retailers in Missouri. The lottery strictly vets applicants to ensure they will represent the brand well and meet sales expectations. This screening process helps set retailers up for success. With the right location, business type, and marketing, the lottery can noticeably boost revenues.
What steps help ensure success as a Missouri lottery retailer?
Here are some tips for retailers to maximize their Missouri Lottery sales and profits:
– Maintain strong inventory management. Carry a wide selection of instant and draw game tickets to appeal to varying customer preferences.
– Promptly activate new scratchers and remove expired games. This keeps the selection fresh and exciting.
– Display point-of-sale advertising prominently both inside and outside the store. This attracts lottery customers.
– Train employees to be familiar with all lottery games, promotions, and procedures. Friendly, knowledgeable service is a must.
– Promote lottery jackpots and special events through social media, email lists, and other marketing channels you use for your business.
– Offer optimal placement for the lottery self-service ticket terminal so customers can easily access it.
– Attract repeat business by reminding customers to check their tickets for prizes before they leave.
– Cross-promote lottery ticket purchases with other in-store merchandise specials and offers.
– Participate in retailer incentive programs and contests sponsored by the Missouri Lottery.
– Consult lottery sales reports frequently and adjust inventory/marketing based on game sales trends at your location.
– Report terminal errors, connectivity issues, signage needs or other support requirements promptly to the lottery.
Taking full advantage of Missouri Lottery provided tools, training and advertising demonstrates a commitment to sales success. Combined with smart marketing and customer service, retailers can achieve the win-win of supporting education funding while increasing their own bottom line.
What are some key tips for managing lottery inventory?
Careful management of lottery inventory is vital for retailer success. Here are some key tips:
– Maintain adequate ticket stock – Avoid selling out of popular games but also prevent excessive old inventory.
– Rotate instant scratcher stock frequently based on expiration dates. Remove expired games promptly.
– Activate new instant game packs as soon as received to maximize sales periods.
– Order additional packs of high volume sellers like Powerball before selling out.
– Return unactivated packs for credit as allowed to reduce inactive inventory.
– Organize ticket stockroom neatly and use first-in-first-out (FIFO) methods.
– Accurately complete inventory counts and game settlements as required.
– Separate and secure books of returned tickets until they can be claimed by the lottery.
– Watch for recall notices and immediately remove any defective or recalled games.
– Keep an up-to-date inventory of paper stock, bet slips, and other consumables.
– Maintain clean, well-stocked displays to showcase products effectively.
Careful attention to details like expiration dates, prompt new ticket activation, and organized stockrooms reduces risks and leads to better sales. Retailers should use all inventory management tools provided by the Missouri Lottery.
What are some common questions on running lottery reports?
As a Missouri lottery retailer, mastering lottery sales reports and terminals is essential. Here are some common questions on navigating reporting:
**How do I generate and print sales reports?**
All retail terminals allow easy access to sales reports. The steps may vary slightly by terminal type. Consult your reference guide or call the retailer hotline for assistance.
**What are the most useful reports to run daily or weekly?**
Daily sales totals, inventory reports, settling reports, and instant ticket reports help maximize profits. Regularly review the data.
**How do I properly settle my terminal?**
You must settle the terminal daily to record sales and transmit data to the lottery. Follow all prompts carefully to complete the reconciliation.
**What if my terminal report totals seem inaccurate?**
First rule out user error. Double check your terminal was properly settled. If totals are still incorrect, contact the lottery hotline immediately. Don’t delay troubleshooting.
**Why is running reports important even though the lottery has access to my data?**
While the lottery can view your sales remotely, retailers should still analyze reports frequently. This allows you to identify trends, low-performing games, and other insights for optimizing sales.
**Where can I find help learning to run and read terminal reports?**
Reference your terminal user guide. You can also contact the Missouri Lottery retailer hotline or your sales representative for assistance or retraining.
Consistently generating and analyzing lottery reports is crucial for identifying issues and maximizing profits. Retailers should make reporting a standard daily or weekly procedure.
What options exist for funding schools besides the lottery in Missouri?
While the Missouri Lottery provides significant funding to education, other options also help support schools in the state:
**Local property taxes** – These are the largest funding source for most school districts. Tax levies are placed on the ballot for voter approval.
**State funding formula** – The foundation formula determines the state funding allocation to each district based on student count, needs, and available revenue.
**Bonds/levies** – Districts can seek voter approval of bonds or tax levies for specific purposes like facilities, technology or operations.
**Grants** – State and federal grant programs exist for specific education programs and services. Districts and schools can often apply for relevant grants.
**Donations** – Individual and corporate donations, including partnerships with local businesses, provide flexible funding for a variety of school needs.
**Foundations** – Education foundations solicit donations and organize key funding initiatives for schools and districts.
**PTO/PTA funding** – Monies raised by Parent-Teacher Organizations help fund school enhancements, items beyond district budgets.
**Fundraising** – Schools run fundraisers like popcorn sales, spirit nights, fun runs and more. These fund supplemental needs.
**Fees** – Some state-approved fees apply for course materials, activities, sports, transportation and other involved services.
Missouri schools rely on a patchwork of sources beyond lottery proceeds. Community support through bonds, levies, donations, partnerships, fundraising and fees help augment district and state funding.
What are some notable Missouri Lottery-funded education programs?
Here are some examples of key education programs the Missouri Lottery helps fund across the state:
– **A+ Schools Program** – Dual high school/college scholarships for students meeting A+ criteria.
– **Access Missouri Financial Assistance Program** – Need-based grants for Missouri college students.
– **Vocational Rehabilitation** – Preparing students with disabilities for careers.
– **Jobs for America’s Graduates** – Assistance for at-risk youth to complete school and transition to careers.
– **Distinguished Scholars** – Awards Missouri’s top academic seniors one-time grants for college.
– **Bright Flight Scholarship** – Merit-based college scholarship program.
– **Early Childhood Development, Education and Care** – Expanding and improving early education opportunities.
– **Schools of Promise** – Targeted programs that aim to turn underperforming schools around.
– **Small Schools Grant** – Supports academically challenged students in small school settings.
– **Career Education** – Helping equip students with technical skills for employment.
Lottery proceeds advance educational opportunities across the entire continuum from early childhood through college in Missouri. The programs reach students with varying levels of achievement and economic backgrounds.
How can players find the nearest Missouri Lottery retailer location?
The Missouri Lottery offers several ways for players to find lottery retailers conveniently located near them.
– Use the retailer locator on the Missouri Lottery website or mobile app. Players simply enter any address and can search by retailer name, city, or ZIP code.
– Call the Missouri Lottery hotline at 1-800-542-3409 for assistance locating retailers in any area of the state.
– Download the Luckiest Retailer Locator app for Apple or Android mobile devices to quickly spot nearby lottery retailers.
– Check for Missouri Lottery logo decals on the entrance doors of convenience stores, gas stations, grocery stores, and other retailers. This indicates they sell lottery products.
– Look for “Play Here” neon or LED signs, jackpot signs, window decals and other lottery point-of-sale advertising displays.
– Search for retailers while driving by using the voice-activated retailer locator available through the official lottery app.
With multiple helpful resources, Missouri Lottery players can easily find the most convenient retailers no matter where they happen to live, work or travel in the state.
What steps can players take if they believe a lottery prize error has occurred?
On very rare occasions, players suspect there may be an error when claiming or being denied a lottery prize. Here are the steps the Missouri Lottery recommends players take in this situation:
– Remain calm and politely ask the retailer to recheck the validity of the ticket and claim.
– If an instant scratcher ticket, double check the game details and claiming procedures printed on the back.
– For a draw game ticket, ask the retailer to scan it again and print a validation receipt.
– If the issue remains unresolved, record the ticket details and ask the retailer to contact the lottery hotline.
– Note the names of the retailer personnel, location and time. Politely ask to speak to a manager if needed.
– Call the lottery hotline yourself if the retailer cannot resolve the issue.
– If you still believe an unjustified denial of a prize has occurred, formally submit a prize claim dispute and investigation request.
– Be prepared to wait for the lottery to fully research the situation before a determination is made.
Missouri Lottery security protocols are robust, so genuine prize errors are exceedingly rare. But players should professionally and promptly bring any suspected issues to the lottery’s attention. Doing so provides the best chance for a satisfactory resolution.
Conclusion
Becoming a Missouri Lottery retailer can be highly rewarding for qualifying businesses. It provides a dependable revenue stream, drives customer traffic, and supports education across the state. By meeting eligibility requirements, completing training, and following all procedures, retailers can benefit from partnering with the Missouri Lottery. Consumers also benefit through greater access to lottery games at convenient retail locations. When lottery sales thrive, education in Missouri thrives as well.
