How Do I Become a Lottery Retailer? 3-Step Process for C-Stores

Did you know that 4 out of 5 c-stores across the country sell lottery tickets? If you don’t offer Powerball and Mega Millions tickets alongside your customers’ favorite snacks and drinks, you’re missing out on a huge revenue stream. 

You’re probably wondering, “How do I become a lottery retailer?” It’s simpler than you think! 

During evening rush hours, lottery ticket sales can pump an extra $2,300 into your monthly revenue. And if your store sells a winning ticket? You’re looking at more foot traffic, bonus commission on the winnings, and the kind of publicity money can’t buy.

Ready to tap into this profit stream? This guide breaks it down step by step so you can start selling lottery tickets today.

1. Research Lottery Agencies in Your Area

The first step in becoming a lottery retailer is researching your state’s lottery agency.

Most lotteries in the United States are regulated by state agencies, which oversee local, regional, and statewide lottery programs. Many also allow licensees to sell tickets for popular multi-state and nationwide lottery products, like Powerball and Mega Millions.

For example, a convenience store in Virginia looking to become a lottery retailer must contact the Virginia Lottery Commission and apply for a lottery retailer license.

2. Gather the Required Documentation and Submit an Application

Applying to become a lottery retailer is straightforward, but accuracy is crucial to a smooth approval process. Here’s what you’ll typically need to submit.

• Proof of identity: Expect to submit a copy of a valid ID, such as your driver’s license, state ID, passport, or another valid state or federal document. In some states, you and other business partners may need to complete and sign a personal data form.
• Business documentation: You must show you’re running a legitimate business. This means sharing your c-store’s location, contact details, and basic business information. Check your state’s specific requirements carefully, as forms and requirements vary by location.
• Proof of business ownership: Submit your state taxation certificate or registration confirmation letter. Keep in mind that it must clearly display your business name and sales tax number.
• IRS confirmation documents: Submit a copy of the IRS’s confirmation documents showing your legal filing name and your relevant Taxpayer Identification Number (TIN). For most c-stores, your Employer Identification Number (EIN) is sufficient. 
• Additional requirements: Be prepared for additional state requirements. For example,  Virginia requires a dedicated bank account for lottery funds that cannot be used for other business purposes. Some states also conduct background checks during the application process.
• Processing fees: Research costs and set aside funding to pay application fees and secure your lottery retail license. 

Remember, each state has specific requirements. Reviewing your local licensing checklist thoroughly will help you avoid processing delays and potential denials. A thorough application speeds up approval — allowing you to start selling tickets and increasing revenue sooner.

3. Launch and Promote Lottery Sales 

Have you received your license and confirmation letter? Congratulations! You’re officially a lottery retailer, ready to sell tickets in local, state, regional, and multi-state markets. Here’s how to get started with selling lottery tickets successfully:

• Configure your point of sale system. If your convenience store uses an industry-specific point of sale (POS) system like C-Store POS, it probably includes built-in lottery management features. That means no extra equipment or software to purchase and minimal training for your staff.
• Choose lottery tickets to sell. Your license lets you sell any approved lottery games in your area. Review available options and contact providers to stock your first ticket inventory. Offer a mix that matches your customers’ interests.
• Promote your lottery tickets. Make your offerings visible and enticing. Use signage at entrances and registers to catch attention and increase impulse buys. Try creative promotions, like bundling lottery tickets with popular store items.

With a valid license, your local lottery commission will provide funds for paying winners. Depending on your state’s rules, you’ll also earn a commission for each winning ticket sold.

How Do I Become a Lottery Retailer? Get Started Today

So, how do you become a lottery retailer? Research your lottery options, check your state’s requirements, and submit your application. Once you're licensed, you’ll be ready to tap into a promising new revenue stream.

But what sets top-performing lottery retailers apart? C-Store POS! With C-Store POS, you can simplify lottery sales with effortless payouts, automated tracking, and intuitive reporting.

Book your personalized demo today to discover how C-Store POS can help you become your neighborhood’s go-to lottery retailer.