Here's how much the retailer could receive if you win the lottery
Someone in Canada just became an instant multimillionaire after winning the $70 million Lotto Max prize. With a jackpot of that size, how much money does the retailer stand to make?
Tony Bitonti, a spokesperson for the Ontario Lottery and Gaming Corporation (OLG), explained how it works.
“Every lottery jurisdiction has a different commission structure and can only speak to what OLG does, but we are proud to say that our blended retailer commission rate is the highest in Canada,” he said.
In Ontario alone, around 10,000 retailers sell lottery tickets, and the province has the highest retailer commission rate in the country. In the last fiscal year, retailers in the province received over $329 million in commissions.
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Retailers receive a 5% commission on free online ticket prizes or the sale of online and sports products. Commissions on Instant ticket products are higher at 8%. Sometimes, OLG offers special commission initiatives on certain lottery products, and that rate can range from 10% to 30%.
The retailer will receive a 2% commission if you win a prize online, and when you redeem a prize on an Instant ticket, they’ll receive 3%.
“Bonus commissions are earned when retailers sell a top prize-winning ticket at their store in addition to commissions on winning redemptions at the store,” explained Bitonti.
But what happens if a retailer sells the top prize-winning ticket?
“Bonus commissions vary from $100 to over $1,500 per top prize-winning ticket,” he said. “This is for all tickets such as Lotto Max, Lotto 6/49, Lottario, etc., and for all of our Instant tickets.”
Just like in Canada, the bonus varies from state to state in the US. However, selling the winning ticket can be life-changing for American retailers.
A retailer in Ohio could receive a bonus of up to US$100,000 if they sell the jackpot-winning ticket, according to CBS News. In comparison, in Illinois, that bonus can reach US$500,000 in Illinois and US$1 million in California.
So why do Canadian retailers choose to sell lottery products?
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Stores that sell lottery products see increased foot traffic.
“In some stores, lottery sells five times more than the next highest product category,” said Bitonti.
Also, retailers can expect to make an average of $9,000 in lottery sales every week.
What are your thoughts on this? Let us know in the comments.
All forms of gambling, including the lottery, involve risk and outcomes are based on chance. Individuals are strongly advised to gamble responsibly. If you are experiencing any signs of gambling-related issues, you can find resources here.
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