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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 do I get a contract to sell Lottery products?

You begin by getting an application packet from the Lottery. This packet contains the initial documents and checklist you will need to begin the application process. The Lottery contracts with business owners to sell Lottery products; it does not issue licenses as the Liquor Commission does.

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. Attached is a “fee schedule” that lists all these costs. 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. You will find a complete Key Person Definition attached. 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.

What are the rules?

Lottery retailers operate under Oregon Administrative Rules (OAR), Chapter 177, Oregon Revised Statutes (ORS) Chapter 461 and the retailer contract. The administrative rules and the statutes deal with the criteria to become a retailer, and some of the requirements for maintaining your contract with the Lottery. There are other rules and requirements which are contained within the contract itself.

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 will help me with all these papers and answer all my questions?

There are Field Application Representatives located throughout the state, and one will be assigned to you. There is also staff support in the Salem office to assist you upon request.

Who do I call to get started?

Everyone who is interested in securing a Lottery contract must call our Field Application Support 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.

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]

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 LotterySM >>

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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 and delis. 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.


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. Attached is a copy of a sample checklist. This list will tell you generally what forms the Lottery will ask you to fill out. It will also tell you generally what other documents we will want from you. When you actually apply for a contract, your Field Application Representative 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. The Lottery needs two fingerprint cards for each person. One set of prints is submitted to the State of Oregon and the other 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 Application Representative 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.

The checklist says 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. The Lottery has notary publics in the Salem office or your Field Application Representative will be able to notarize these documents for you.

Note: 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.

Who is responsible for maintenance and repair of the equipment?

The retailer is generally responsible for keeping equipment clean and presentable. You are also responsible for minor maintenance like changing paper, clearing jams, etc. The Lottery has a full staff of Service Technicians to provide preventative maintenance and repair service. We also have Hot Line staff that can sometimes help retailers or their employees fix minor problems over the phone. There is no charge by the Lottery for ordinary service, but the retailer may be responsible for repair costs if damage is due to negligence or willful acts of destruction.

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.


Application Process

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Step 1: Call the Field Application Support Specialist at 503-540-1136 (toll free at 1-800-766-6789). The Field Application Support Specialist for retail contracts will take your information, contact your local Field Application Representative and have them contact you.

Step 2: Your local Field Application Representative will call you to arrange a meeting. It may take a few days or even a week before you get this call. Please understand there are many people who are interested in getting a contract to sell Lottery products. Your Field Application Representative will call you as soon as possible.

Step 3: Your Field Application Representative will supply you with an application packet. Once you have made contact with your Field Application Representative, he or she will go over the forms with you and give you a checklist that guides you through other documents you’ll need to provide.

Step 4: Call your Field Application Representative when you have completed the application to schedule another appointment. When you meet, the Field Application Representative will go over the application packet with you to ensure that it is complete; an incomplete application packet will not be accepted. If you need to find additional documents or get more information, your Field Application Representative will likely leave the entire application with you until you have completed all of the documents.

Step 5: Once your application is complete, your Field Application Representative will accept your application. He or she will take one last look at the application to make certain the application is complete.

Step 6: Your Field Application Representative will then submit your application to Retail Contracts at the Lottery office in Salem. The Lottery will date stamp it as received, verify, enter the information in our data base and forward it to Lottery Security.

Step 7: The Lottery Security Section will conduct a background investigation. After your application is assigned to a detective, they are given 60 days to complete the investigation. Depending on how many people are involved with your application, and whether there are any civil, criminal, or other questionable findings, the investigation may not take 60 days, or could take longer. Once the Lottery Security Section has completed their process, they will make a recommendation on your application and will return it to Retail Contracts.

Step 8: If the Lottery approves your application for a contract, we will ask the Director to sign your retailer contract. Once that is complete, the Lottery will schedule your training, install phone lines in your business and set up equipment installation.

Note: If we are going to deny your application for a contract we will send you a letter explaining why, and how you can appeal our decision.


Required Fees and Monthly Charges

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  • Lottery network service installation $634.00 1, 2
  • Relocate network service internal wiring for VSC, Oregon’s Imagine Terminal, Lottery To Go™ $145.00 3
  • Draw Game only monthly network charge $73.00
  • Video monthly network charge $211.00
  • Annual Department of Revenue amusement device tax (per VLT) $135.00 4


Replacement/Repair Charges:

  • Keno monitor $400.00
  • Keno monitor wall mount $100.00
  • Keno monitor remote control $40.00
  • Lottery To GoTM lock set $49.19
  • Lottery To GoTM key $5.00
  • Lottery To GoTM T-Bar No Charge
  • Lottery To GoTM FOB (Remote Control) $26.19
  • Main door/cash door lock(s) change $36.50
    key (each) $7.00
  • Scratch-its SM dispenser lock and key $7.50 5
    Additional key $4.50
  • Play Station $400.00
  • 16 Bin ITVM remote control $39.00
  • POP Backlit LED sign $193.45 3
  • Keno sign $144.45 3
  • Video sign $211.96 3
  • Exterior Lottery ID sign $425.00 3
  • Interior LED Lottery ID sign $279.00 3
  • Video LotterySM Game Zone sign $296.00 3
  • Video Lottery Lit Menu Board $107.76

Notes:
1 There may be additional network installation charges if the retailer location is in an area where the required network facilities are not available. Facilities are not present in every area of the state and may require that the Network Service Provider install additional hardware and/or perform additional cable work. Each of these cases is unique and charges will vary. The retailer will pay actual costs.
2 If a retailer causes a delay of the network installation that extends 30 days or more past the Network Service Provider “Due Date,” the retailer may be assessed an additional $500 charge. The retailer will only be assessed this charge if the Network Service Provider assesses the Lottery this charge. The “Due Date” is the date that the Network Service Provider is contractually bound to have the network service in place and active. The Lottery will inform the retailer, or the retailer’s employee or representative, of the “Due Date” as soon as the Lottery receives the date from the Network Service Provider.
3 Actual costs may vary; fees are calculated on time and materials.
4 Additional Department of Revenue Amusement Device Taxes will be charged when net sales reach the following levels:

$104,000.00: an additional $50.00 per VLT
$260,000.00: an additional $75.00 per VLT.

5 Additional Locksmith charges are not included.


Key Person Definitions

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7 “Key person” means:

a Corporations: For any corporation, including a subsidiary of a parent corporation
A Stockholders: Any stockholder of a corporation who owns 10% or more of the outstanding stock in such corporation.
B Directors: Any director of a corporation who owns or controls 3% or more of the voting stock in such corporation.
C Officers: Any officer of a corporation.


b Private Clubs: For a private club as described in ORS 471.175(8):
A The treasurer.
B Any officers, directors, or trustees who oversee or direct the operation of the food, beverage, Lottery, or other gambling-related activities of the private club, and
C Each manager in charge of the food, beverage, Lottery, or other gambling-related activities of the private club.

The provisions of paragraphs (7)(a)(A), (B), and (C) of this rule do not apply to private clubs.

c Trusts: The trustee and all persons entitled to receive income or benefit from the trust.
d Associations: The members, officers and directors.
e Partnerships and Joint Ventures: All of the general partners, limited partners or joint ventures.
f Limited Liability Companies: Any manager of the limited liability company, and any members of the limited liability company whose investment commitment or membership interest is 10% or more in the limited liability company.
g Layered Ownership: If the parent company, general partner, limited partner, joint venturer, stockholder, member or manager of a limited liability company is itself a corporation, trust, association, subsidiary, partnership, joint venture or limited liability company, then the Director may require that the applicant provide disclosure for such entity as if such entity were a key person itself.
h Family Members: Immediate family members as required in ORS 461.3002, b, G and


i Sole Proprietors: The sole proprietor, if the retailer is a sole proprietor.
j Owner’s Representative: Any person who acts or who has real or apparent authority to act on behalf of the owner in most matters concerning the operation of the owner’s business during all business hours. This definition does not include a “shift manager” or a “convenience store manager” unless qualified under this rule. The following are examples of managers who are key persons under this definition:
A General Manager: A person who operates the business for a corporate or absentee owner.
B Area Manager: A person who operates multiple locations or supervises multiple store managers.
C Manager in Fact: Any person who routinely performs all of the following duties:
i The hiring and firing of employees;
ii Making purchasing decisions relating to the buying of supplies and inventory; and
iii Conducting banking functions for the business.
k Landlord: A landlord who receives 40% or more of the retailer’s Lottery commissions as a part of lease payments or rent, or any landlord who the Director finds, based on reasonably reliable information, exerts influence over the operation of the retailer’s business.
l Contractual Relationship: Any person who has a lease, contract, or other agreement with the applicant or retailer or anyone else, to provide food service or to manage or operate any part of the business in a Video Lottery retailer’s premises other than as an employee.
m Control Person: Any reference to a “control person” of a retailer in OAR Chapter 177, a Lottery retailer contract, or Lottery form in effect or in use on or after the effective date of this rule shall be deemed to refer to a “key person” as defined in this section.
8 “Personal disclosure” means that part of the application which relates to a natural person’s personal, criminal, and financial background.
9 “Mediation” has the meaning as defined in ORS 36.1104.
10 “Mediator” means a person who performs mediation.
Stat. Auth.: OR Const. Art. XV, Sec. 44
Stats. Implemented: ORS 461.300

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Phone: 503-540-1000 • Fax: 503-540-1001 • Email: lottery.webcenter@state.or.us