When it comes to lottery wins, we often focus on the lucky individuals who walk away with life-changing prizes. However, there is another group of winners that often goes unnoticed—the retailers who sell the winning tickets. In Ontario, Canada, the Ontario Lottery and Gaming Corporation (OLG) offers one of the most lucrative retailer commission structures in the country.
The OLG operates differently than other lottery jurisdictions in Canada. Authorized lottery retailers in Ontario receive a commission for both ticket sales and ticket redemptions. This means that retailers earn a percentage of the ticket price for every ticket sold in their store and an additional percentage for every winning ticket redeemed at their location. Tony Bitonti, an OLG spokesperson, told CDC Reports that retailers can earn up to 8%commission on ticket sales and up to three percent on ticket redemptions.
But what sets Ontario apart is the additional bonus commissions offered to retailers. When a top prize-winning ticket is sold at a particular store, the retailer earns a bonus commission on top of their regular commissions.
These bonus commissions can range from $100 to over $1500 per top prize-winning ticket. With such generous commission rates, it’s no wonder that OLG proudly claims to have the highest blended retailer commission rate in Canada.
The commission structure in Ontario has seen significant growth over the years. In the last fiscal year, the OLG paid over $330 million in commissions to approximately 10,000 retail partners across the province. This represents a substantial increase from the $196 million paid in fiscal 2009-10, showcasing a five percent compounded annual growth rate (CAGR) in retailer commissions. This growth highlights the OLG’s commitment to supporting its retail partners and recognizing their contribution to the lottery system.
In January 2021, the OLG introduced the “Support Local” initiative, which marked a Canadian lottery first. Under this program, the OLG returned all profits from the new Instant Plinko game to retailers for three months’ worth of sales. The success of the Instant Plinko initiative led to the implementation of similar programs for other games like Lighting Lotto and Instant Top Up. These initiatives offered commission increases ranging from 10%to 30%, further boosting the earning potential for Ontario retailers.
The “Support Local” initiative and its subsequent iterations not only drive sales but also generate higher retail commissions. By empowering retailers and ensuring their financial success, the OLG strengthens its relationship with its retail partners and fosters a thriving lottery ecosystem.
While Ontario boasts the highest blended retailer commission rate in Canada, it’s worth examining how other provinces fare in comparison. Each province has its own commission structure for retailers who sell winning lottery tickets. However, not all jurisdictions offer commissions on both sales and redemptions.
For example, in Quebec, where Loto-Québec operates, retailers receive a one percent commission on ticket sales. When a winning ticket is sold at their store, they earn a commission based on the prize amount. In the case of Pierre Richer, the recent $50 million Lotto Max winner in Quebec, the retailer, Super C on Boulevard Champlain in Montreal, received a commission of $500,000. While this is a substantial amount, it falls short of the blended commission rates offered in Ontario.
The generous retailer commission rates in Ontario have a positive ripple effect on both individual retailers and the communities they serve. The additional income earned through commissions can significantly contribute to the financial stability and growth of retailers. It allows them to invest in their businesses, hire more staff, and support local initiatives.
Looking ahead, the OLG remains committed to driving sales and generating higher retail commissions. The success of the “Support Local” initiative demonstrates the effectiveness of such programs in boosting retailer earnings.
By continuously innovating and offering new games and promotions, the OLG creates opportunities for retailers to increase their sales and commissions. This proactive approach benefits both the OLG and its retail partners, solidifying Ontario’s position as a leader in providing a thriving and rewarding lottery experience.
