Here’s a player question that just came our way about lottery tickets that win a big prize. The person wanted to know if the retail location involved receives a bonus from the Iowa Lottery. The short answer is that yes, they definitely do! The details vary with the size of the prize and the lotto game where the prize was won.
Here in Iowa, retail locations receive a commission from the Iowa Lottery for every ticket they sell. And that total really adds up. In fiscal year 2021, the latest complete year for which the lottery has records, retailers were paid a total of $29.7 million in compensation from the Iowa Lottery. We’re gratified to know that the lottery is making a difference in the bottom line for local businesses!
In addition to the sales commission for each ticket sold, retailers in Iowa also receive bonuses from the lottery. For example, retailers get a peak sales bonus when the jackpots in Powerball® and Mega Millions® climb higher than $400 million. We at the lottery know that those are busier times for our retailers and we appreciate their work in selling lottery tickets.
Retailers also receive bonuses for selling lottery tickets that win a big prize. Iowa businesses that sell a jackpot-winning ticket in Powerball or Mega Millions receive a $10,000 bonus. Retailers that sell a jackpot-winning ticket in Lotto America® ticket get a $5,000 bonus, as do those that sell a ticket winning the top prize in Lucky for Life®. Retailers that sells a ticket winning Lucky for Life’s second prize level of $25,000 a year for life receive a $500 bonus from the lottery.
There also are smaller bonuses for retailers that sell lotto tickets winning prizes of $100,000 or more. For example, a business that sells a lotto ticket winning a $100,000 prize receives a $100 bonus from the lottery, while a location that sells a lotto ticket winning a $1 million prize gets a $1,000 bonus.
Businesses that received bonuses from the Iowa Lottery have used that income in different ways through the years. For example, the owners of one business used their bonus from selling a jackpot-winning ticket for a new roof on the building. Others businesses have made donations to organizations in their local community.
It’s always fun to be part of the moment when a big prize is won and to learn more about the winner and retail location involved!
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