Connecticut lottery agents protest cut in commissions

Comment #5

Todd — Wed, 13 May 2009 03:15:03 GMT

I don't see an argument at all. I agree with you, the retailers should be paid well, because then they will be more motivated to increase sales efforts.

At the same time, the retailers need to be held responsible for redeeming winning tickets, even when they don't want to.

I must say, I have a hard time believing the industry standard is 7%. Yes, there are some states at 6%, but I don't think it's the norm.

Comment #4

Drivedabizness — Tue, 12 May 2009 20:54:33 GMT

Not to argue with Todd but 5% is not that good of a commission rate. Many states have 6% of sales - plus some sort of cashing bonus and / or a bonus for selling big prize tickets.

The industry average (at least the last time I collected the numbers) was right at about 7% in total retailer compensation.

I know of no state that has a sales commision as low as 4%. Lotteries are not the kind of organizations that can afford to screw anyone - their retailers least of all.

Comment #3

maringoman — Sat, 09 May 2009 23:12:45 GMT

Why is everybody working overtime to screw the average guy? From the banks to the insurance companies to the criminals. Enough already

Comment #2

jim695 — Fri, 08 May 2009 19:39:56 GMT

I agree, Todd.

One percent equals only a penny per ticket for online games; not a significant savings to the lottery or to the state, but it represents one-fifth of a retailer's income from online sales. Scratch-offs account for a greater percentage of sales in Connecticut (compared to their online games), so tickets costing $2.00 to $20.00 or more will really take a bite.

The scary part is that once even one state passes such legislation, most other state lotteries will jump on the... [ More ]

Comment #1

Todd — Fri, 08 May 2009 17:23:02 GMT

I have to agree with these protesting lottery retailers. 5% is a good commission rate, but drop it to 4% and that takes a sizeable chunk out of the store's revenues -- that's money right out of their pockets.

These days, with lottery sales being the one bright light in the retail channels, taking away that revenue could be devastating for thousands of small business owners.

Besides, does the lottery really want to risk alienating the people directly responsible for the sales of their produ... [ More ]

Connecticut lottery agents protest cut in commissions

Lottery Post — Fri, 08 May 2009 15:30:50 GMT

More than 100 lottery agents from across the state came to Connecticut Lottery headquarters in Rocky Hill Thursday to protest a cut in ticket commissions by the Connecticut Lottery Corp.

The agents, who represent businesses ranging from small convenience stores and gas stations to delis and grocery store chains, are frustrated by an act that state legislators passed in February that cut commissions from 5 percent to 4 percent as of April 1.

The lottery corporation's board of directors stil... [ More ]