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Retailer FAQs

Becoming a Retailer and Retailer Contracts




How do you get a contract to sell Lottery Products? How long does it take? How much revenue can a business expect and what is the commission structure? The answer to these and other questions are here in the retailer FAQs. This document is updated periodically to reflect changes in process or timelines. If you have additional questions, please feel free to contact us.

General Information


How much does it cost to apply?

It costs nothing to apply. If you are approved, however, you will have to pay some costs related to installing or maintaining phone lines. If you are approved to sell Video Lottery, you will also have to pay amusement taxes to the Oregon Department of Revenue (through the Lottery) for having Video Lottery Terminals. There are also costs associated with maintaining Lottery equipment. Some local jurisdictions (cities and counties) may also charge you a fee or tax for adding Lottery products to your business.

When can I apply?

In most cases, your business must be open and operating before the Lottery will accept an application. If you are going to buy a business that already sells Lottery products, the Lottery may accept your application before the purchase closes.

What is a Key Person?

“Key Persons” are defined in Administrative Rule. In brief, Key Persons includes owners, corporate officers and directors, some stockholders, family members, managers and others.

What kind of investigation is involved?

The Oregon State Police, Lottery Security Section, conducts background investigations for the Lottery. They look into the criminal, civil, personal and financial background of all applicants and all Key Persons associated with the business. The Lottery uses computerized information, official records, personal interviews, etc. to gather information to determine whether an applicant qualifies for a Lottery contract under state law. Due to the sensitive nature of the Lottery and the information it must gather from applicants, this process may seem intrusive. Please understand that everyone who applies must go through the same process.

How long does it take to get a contract?

This question is difficult to answer because there are so many variables. Generally, it takes the Lottery between 45 and 90 days to process an application. This time begins after you have turned in a complete application. If you are approved, the Lottery will provide training, install the appropriate phone lines and schedule installation of the equipment. You may get a temporary contract that would allow you to start selling Lottery products sooner (not everyone can apply for a temporary contract, and not everyone qualifies.). The Lottery will discuss temporary contracts with you if you qualify.

Who do I call to get started?

Everyone who is interested in securing a Lottery contract must call our Field Application Specialist. The phone numbers are listed in the application process at the end of this form. Before contacting the Lottery, please read through the remaining FAQ’s to familiarize yourself with the overall retailer process.

Traditional Lottery Products

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What is available for me to sell in my business?

Nearly all types of businesses may sell Traditional Lottery products. The one stipulation is that no one may sell only Lottery products. You must, therefore, sell other product(s) in your business. Traditional Lottery products are currently sold in convenience stores, major grocery stores, gas stations, gift shops, etc., as well as taverns and bars. Traditional Lottery products include Scratch-itsSM and all draw games such as Powerball® and Keno. For complete information regarding products, your local Field Sales Representative will contact you and help you decide what products are the best fit your business.

Can I choose which products to sell?

Sometimes you can. Determining the best product mix for your location will be a joint discussion between you and your Field Sales Representative.

How much money will I make?

This answer depends on a few variables: what products you sell, the location of your business, etc. Your local Field Sales Representative can share with you some average sales figures for your area. Below is a list of commission rates for all types of Lottery products. In addition to commissions, some retailers are eligible for bonuses and incentives. For Traditional games (all games other than Video Lottery), the compensation you receive depends on the volume of Lottery product sold at your business every week. These are general rates; please refer to the retailer contract for specific details.

Amount Sold per Week Compensation - Percent of Gross Sales
Up to $1,000 5.0%
$1,001 to $2,000 7.0%
$2,001 to $3,000 7.5%
$3,001 to $4,000 8.0%
$4,001 to $5,000 8.5%
$5,001 to $6,000 9.0%
$6,001 to $7,000 9.5%
$7,001 and up 10.0%


For Video Lottery, the percentage retailers receive is calculated on a percentage of net receipts. The following rates are an approximation. Please refer to the retailer contract for specifics. At the time a retailer contract is signed, the retailer must choose in writing either Option A -4 Tier Option or Option B –3 Tier Option.

Option A
Net Receipts per Year Compensation - Percent of Net Receipts
Up to $175,000 27.50%
$175,000 to $475,000 23.00%
$475,000 to $800,000 14.00%
$800,000 and up 11.00%


Option B
Net Receipts per Year Compensation - Percent of Net Receipts
Up to $600,000 22.00%
$600,000 to $1,800,000 17.50%
$1,800,000 and up 11.00%


Can I choose which products to sell?

Sometimes you can. Determining the best product mix for your location will be a joint discussion between you and your Field Sales Representative.


Video Lottery

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What kind of businesses can sell Video Lottery

There are a variety of businesses that may qualify to sell Video Lottery including taverns, restaurants, bars or lounges, café/small eateries, and limited menu retailers. To qualify, you must have a license from the Oregon Liquor Control Commission that allows you to sell and serve alcoholic beverages for consumption on the premises. You must also have an area where minors are not permitted. This is where the Video Lottery Terminals would be placed with signs saying, “prohibited to minors” posted by either the Liquor Commission or the Lottery. Finally, you must be a business that is normally associated with on premise consumption of food & alcoholic beverages.

Note: Only businesses with OLCC licenses that allow alcoholic beverages to be consumed on the premise, qualify to sell Video Lottery. For details, please see the Video Lottery section. [more info]


The Application Packet

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What kind of forms do I need to fill out?

There will be several forms in your application packet. Some of them ask questions about your business (restaurant, store, etc.), some ask questions about who owns the business (the sole proprietor, the corporation, the LLC, etc), and some ask questions about Key Persons personally. When you actually apply for a contract, your Field Contracts Consultant will “personalize” a checklist for you specifically so you’ll know exactly which forms and documents you need.

Why does the Lottery want to know so much about me personally?

There are statutes and administrative rules that set the criteria. These laws direct the Lottery to consider (among other things) your financial responsibility, criminal background, business history and even persons with whom you associate. Personal Disclosure forms will ask you for such information as your residence history and information regarding your spouse. The Lottery is directed by law to be responsible about who it contracts with, so as to avoid associations with individuals or groups that could potentially damage its integrity and operations.

Do I have to be fingerprinted?

If you are applying to sell Video Lottery, all Key Persons associated with your business must be fingerprinted. We need two fingerprint cards for each person if they are fingerprinted with ink. We only need one fingerprint card per person if your fingerprints are scanned. We submit one set of prints to the State of Oregon, and one to the Federal government. If you are not applying to sell Video Lottery, you do not need to be fingerprinted.

Where do I get fingerprinted?

You can contact your local police department or sheriff’s office or the Oregon State Police. You can also make an appointment at the Lottery office in Salem or your Field Contracts Consultant can take your prints. The science of fingerprinting is pretty exacting. If you submit a set of fingerprints that is smudged or fails to show complete prints or is otherwise inadequate, you will be requested to redo them. Some agencies charge you to take prints and some do not. Do some research to find the one that best suits your needs.

Some documents have to be notarized. Where do I get that done?

Many banks will notarize documents for their own customers. Some local government offices will also provide this service. Please wait to have any document notarized until directed by your Field Contracts Consultant to do so.

Do not sign any document that requires notarization until you are directed to do so by the notary!


Miscellaneous

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Do I buy the equipment I need to sell Lottery products?

No. The Lottery owns the Video Lottery terminals and other support equipment necessary to sell Lottery products. The Lottery will provide paper stock for Video Lottery terminals, play slips, ribbons, informational brochures, in-store advertising materials and other supplies, free of charge.

Do I need to do any construction or any electrical work to have the machines put in?

Yes. First, you’ll need to provide an area that allows for 24 square feet per Video Lottery terminal and ensure “restricted view” of these terminals by persons outside your age-restricted area (this could entail darkening windows, installing doors or curtains or other barriers, etc.). You will need a dedicated phone line (This is a private phone line with no other function than transmitting Lottery information. The Lottery will arrange to have this phone line installed in your business). You will need dedicated electrical power (a dedicated 20 amp, 120 VAC circuit). You will be responsible for the installation of electrical power and obtaining all necessary permits required by state and local government.

Lottery games that are sold in your business must be accessible to people who use wheelchairs. You can read about these requirements in the Oregon Administrative Rules (OAR), Chapter 177. Also, when you get an application packet, you will find additional information on these requirements. Generally, you will need to provide handicapped accessible parking, appropriate access aisles and ramps and enough maneuvering room based on federal standards.

How many Video Lottery Terminals can I get?

The Lottery requires each Video Lottery retailer to have a minimum amount of floor space per each Video Lottery terminal. Here are the basics:

  • A retailer with less than 360 square feet of retail floor space is not eligible to receive any Video Lottery terminals for that business.
  • A retailer with 360 square feet of retail floor space may receive up to three Video Lottery terminals.
  • For each 120 square feet over the required minimum square footage of 360 square feet, a retailer may be eligible for one additional Video Lottery terminal up to the maximum number of six(6) terminals permitted under Oregon Law.


How do players get their prizes if they win?

Retailers are responsible for paying all prizes up to and including $600. Players claim any Traditional game prizes over $600 and Video Lottery Jackpot Prize cash slips, at Lottery headquarters in Salem, in person or by mail. When you attend Lottery training, you will learn how to validate prize and cash slips presented to you by players.

What hours can I sell Lottery products to my customers?

Traditional Lottery from 5:00 a.m. to 2:30 a.m. Video Lottery from 7:00 a.m. to 2:30 a.m.

How does the money work?

The Lottery will require you to establish a bank account from which it can transfer funds electronically (called an EFT account). You will be responsible for putting the state’s share of money into this account on a weekly basis. You will have access to reports that will tell you exactly how much money needs to be in the account.


Oregon Lottery • 500 Airport Road SE, Salem, OR, 97301 • PO Box 12649 Salem, OR, 97309-0649 • www.oregonlottery.org
Phone: 503-540-1000 • Fax: 503-540-1001 • Email: lottery.webcenter@state.or.us