Michigan Lottery Form – Fill Out and Use This PDF

RETAILER

APPLICATION

Rev. October 2019

The requirements listed below pertain to Retailers interested in selling Michigan Bureau of State Lottery (Lottery) products. Failure to meet any of these requirements, the terms and conditions of the contract or any other provision of the Lottery Act and Rules may result in disciplinary action up to and including license revocation depending on the nature and severity of the violation.

1.The Lottery advises all applicants for licenses and/or changes of ownership not to invest any money or commit themselves by any binding agreements in the expectation of being issued a license or approval of a change of ownership until officially notified by the Lottery that their application has been approved.

2.Most applicants with an acceptable credit history and no criminal record that would adversely affect the integrity of the Lottery may be licensed. Lottery may require a bond from a Retailer as a condition

of licensure. ANY CRIMINAL RECORD MUST BE DISCLOSED ON PERSONAL DATA SHEETS.

3.The items listed in the applicant checklist are required before the Lottery will license the location.

4.A nonrefundable application fee of $150 is due at time of application. This fee may be remitted by check payable to the State of Michigan or paid on-line at https://www.thepayplace.com/mi/lottery/retailerserv

5.Retailers are required to maintain a separate account in a financial institution that is a member

of The National Automated Clearing House Association. The Lottery must be authorized to initiate electronic funds transfers (EFT) to or from the Retailer’s designated account for the net weekly settlements due from the sale of instant and/or on-line game tickets. The Retailer shall ensure that “good” funds shall be available in the designated account to cover said transfers on the day of week specified by the Lottery.

“Good” funds are defined as unrestricted funds credited to a Retailer’s account that a financial institution will release for payment of an EFT. Unrestricted funds do not include checks placed on hold until they have cleared the maker’s account or deposited checks that the maker’s financial institution has returned unpaid. Any cash alternative settlement methods (such as line of credit, overdraft protection, a pre-approved loan, or any other arrangements) agreed upon with your bank are the Retailer’s responsibility. If a settlement is not honored by your bank, regardless of the reason, the Lottery will consider it a delinquency.

Applicants should submit a completed Electronic Funds Transfer (EFT) Authorization Form with the application. If this EFT account will not be established until closing of the sale, a void check or a letter, on bank letterhead, with the bank’s routing number and your checking account number may

be submitted at that time. Lottery products will not be made available to the Retailer until this information is provided.

6.Annual license renewal fee is $200. This fee will be waived for those Retailers who are not on probation for violation of the Lottery Act or its Rules at the time of renewal.

7.It is recommended the Retailer provide (prior to the installation of Lottery equipment) a dedicated circuit with 115 volts, 20 Amp. 60 HZ service with an isolated ground that remains on 24 hours per day. The dedicated circuit must have a 4 outlet box that will accommodate 3 prong, “U” grounded type plugs. The Lottery reserves the right to require a Retailer to obtain certification of a dedicated electrical circuit from a qualified electrician. All installation and ongoing costs for this service will be the responsibility of the Retailer. The outlet shall be located within five feet of the terminal. The Retailer shall provide sufficient space for the operation of the equipment.

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1.A person must be 18 years of age or older to buy or sell Lottery tickets.

2.Retailers must display their Lottery license or a copy of their Lottery license in a conspicuous place.

3.Retailers may sell tickets only on the premises indicated on the license. Only instant tickets issued to a specific location can be sold at that location. Retailers may not exchange books of instant tickets with other Retailers or stores.

4.All Retailers are expected to redeem winning tickets with a value up to and including $600. Winning tickets must be validated through the validation system(s) for the Retailer to receive credit.

5.Write your Retailer number on the back of all winning tickets that you redeem and deface the validation number. Destroy redeemed tickets after balancing.

6.Retailers are expected to make full use of all promotional material provided by the Lottery and to prominently post winning numbers/symbols and jackpot amounts as soon as possible.

7.Retailers are expected to participate in Lottery signage programs and to display approved sign(s) provided by the Lottery.

8.Traditional Retailers are required to offer for sale instant tickets.

9.Lottery tickets cannot be sold for more than their established price. They can be sold for less than their established price as a special promotion if the Retailer desires. Retailers who sell tickets to other Retailers for resale are in violation of the Lottery Act & Rules.

10.Retailers cannot offer to give any money or other thing of value to the holder of a Lottery ticket

or share for winning the Lottery, other than the prize if payment of the prize by the Retailer is authorized by the Commissioner. Retailers who offer bonuses to Lottery winning tickets holders are in violation of the Lottery Act & Rules.

11.Retailers cannot purchase a winning ticket or tickets from an original purchaser or from a subsequent purchaser.

12.Retailers are prohibited from participating as a Retailer for other Lotteries.

13.The sale of a valid Lottery ticket is final and a Retailer shall not accept ticket returns.

14.Lottery may prohibit a person authorized by the Retailer from participating in a Lottery activity i.e. selling tickets or redeeming tickets.

15.A Retailer, upon issuance of a license, will receive 6% commission on each ticket sold at the terminal, 5% sales commission on all cashless transactions on cashless fitted equipment and a 2% commission on any prize paid. Retailers may also receive bonus commissions as stated in Lottery directives. For more information on bonus commissions visit the Lottery website.

16.Retailers are expected to maintain current and accurate records of all operations in conjunction with sales in conformity with Rules, instructions, and directives of the Lottery. The Retailer is required to make the records available to Lottery representatives upon request.

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1.Retailers must not be delinquent in settling accounts with the Lottery.

2.Retailers are required to maintain a separate bank account for Lottery use only in a financial institution that is a member of The National Automated Clearing House Association. The Lottery must be authorized to initiate electronic funds transfers (EFT) to or from the account.

3.Cash only must be deposited in this account, do not include checks in your deposit.

4.The sales week is Tuesday through Monday. Your invoice is available Tuesday of each week. Bank deposits must be made by 2:00 p.m. on Tuesday to assure available funds for EFT withdrawal.

5.A Retailer’s selling privileges may be suspended upon determination that the Retailer is delinquent for any settlement. Retailers are considered delinquent when sufficient good, available funds are

not available in the financial institution account at the time the Lottery attempts to electronically withdraw the Retailer’s settlement.

6.Retailers are expected to promptly “make good” a delinquency by remitting a cashier’s or certified check to the Lottery for the full amount of the delinquency plus any delinquency fee. A fee may be assessed for each delinquency in accordance with the fee schedule currently in effect.

7.A Retailer who fails to “make good” a delinquency shall be subject to license revocation. A retailer may also be subject to collection proceedings for failure to “make good” on a deliquency. Collection proceedings may be initiated by the Lottery or by a designated third-party.

8.A Retailer who exceeds the established number of delinquencies within six consecutive months shall be subject to license revocation or be required to post a cash bond to continue as a licensed Retailer.

1.The Retailer shall immediately notify Retailer Services of any lapse in on-line terminal operation that will exceed 48 hours in duration.

2.The Retailer’s license may be revoked if the Retailer has an unapproved lapse in operation that exceeds 30 calendar days.

3.Under Lottery Rules, the Retailer must pay the fees established by Lottery. These fees include the following:

a.Application Processing Fee - $150 A nonrefundable application fee is due at the time of application.

b.Investigation Fee - $700 This fee may be assessed to the Retailer when an investigation is conducted resulting in disciplinary action.

c.Satellite Communication Equipment Installation Fee - $550 This fee is for the installation of communication service for an on-line Lottery terminal.

d.Delinquency Fee - $200 This fee may be assessed by the Lottery each time a Retailer is delinquent.

e.Annual License Renewal Fee - $200 This fee will be waived for those Retailers who are not on probation for violation of the Lottery Act or its Rules at the time of renewal.

4.Retailers will be given written notice when fees are changed by Lottery.

5.All Retailers may be subject to a terminal minimum sales performance evaluation every quarter. Failure to meet the minimum sales performance may result in license revocation. The minimum

sales performance amount is set by the Lottery and is subject to change, but will not exceed a $4,000.00 weekly average.

6.Failure to meet the performance requirements or the contract terms and conditions may result in disciplinary action depending on the nature and severity of the violation. When the severity of a violation warrants equipment removal and/or license revocation, the Retailer may request a conference with the Commissioner or the Commissioner’s designee. At this informal conference, the alleged violation will be reviewed with the Retailer. The Retailer will have the opportunity to refute the alleged violation or to explain the reasons for the violation. The Retailer will be notified in writing of the Commissioner’s decision. The Commissioner’s decision is final.

7.It is each owner/shareholder’s responsibility to report to the Lottery any changes in his or her personal or business situation that would adversely affect Lottery’s integrity and/or its operations. This includes but is not limited to: any change of ownership, changes in a home address, phone number, etc; misdemeanor or felony convictions; liquor, food stamp, or tobacco violations; tax defaults or liens; personal or business bankruptcies; or any pending lawsuits against an owner/shareholder

or the business.

8. Each owner/shareholder authorizes the release of all information regarding his or her personal/business credit and criminal history to the Lottery. Each owner/shareholder understands it is his or her responsibility to report any changes in a personal or business situation. Each owner/shareholder accepts that any violation of the Lottery Act, Rules, contract, directives, instructions, or communications (including this communication) may be cause for revocation of any Lottery license.

To report any changes, contact Lottery at: Michigan Lottery, Retailer Services, P.O. Box 30023,

Lansing, MI 48909; or by fax at (517) 335-5757; or by emailing MSL-Licensing@michigan.gov or by calling (517) 335-5619.

The requirements listed below pertain to the licensing of nonprofit organizations.

PRINCIPAL OFFICERS

The Retailer Contract/Application must be signed by the three principal officers (i.e. president, vice president, treasurer, secretary) of the organization.

Each of the principal officers must complete and sign a Personal Data Sheet authorizing the Lottery to perform a personal criminal and credit check.

The Lottery reserves the right to deny or revoke a license based on the criminal and/or credit history of any principal officer.

Lottery references to owners/ownership means any and all of the principal officers and/or Lottery chairpersons.

Principal officers must be at least 18 years old.

Any change in principal officers must be reported to the Lottery by completing a new Retailer Contract/ Application and Personal Data Sheet.

LOTTERY CHAIRPERSON

Each location must designate a Lottery chairperson who will be the Lottery contact and responsible for all Lottery activities. This includes making the Lottery deposits on Tuesday before 2:00 p.m., stocking supplies, and other necessary activities.

The Lottery chairperson, if different from the principal officers, must sign the Retailer Contract/Application. He/she must also complete and sign a Personal Data Sheet authorizing the Lottery to perform a personal criminal and credit check.

The Lottery reserves the right to deny or revoke a license based on the criminal and/or credit history of the Lottery chairperson.

The designated Lottery chairperson must be indicated on the Retailer Contract/Application.

The Lottery chairperson must be at least 18 years old.

Any change in the Lottery chairperson must be reported to the Lottery by completing a new Retailer Contract/Application and Personal Data Sheet.

OWNERSHIP OF BUILDING

A copy of the lease, deed, rental agreement or other proof must be provided to show the organization’s legal right to occupy the building/premises.

LOTTERY ACT & RULES

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The Michigan Lottery is dedicated to ensuring our players are provided with a fun and safe form of entertainment. As part of this effort, $1 million is provided each year to help fund statewide education and treatment programs for problem gaming, as well as the Michigan Problem Gambling Helpline.

Problem gambling may affect anyone, regardless of age, race, gender or financial status. Once it is detected, problem gambling may be treated successfully. The first step is determining if you have a problem or are headed toward a problem.

CONFIDENTIAL HELP AND SUPPORT

FREE, 24/7 Michigan Problem Gambling Helpline • Call: 800-270-7117 • Text 248-648-3363

The Michigan Problem Gambling Helpline provides FREE, confidential, one-on-one support to any Michigan resident seeking help for a gambling problem. Counselors are available to provide immediate assistance including screening services and referrals to treatment or support groups.

For additional problem gambling information and resources, please contact the Michigan Lottery’s Responsible Gaming Manager at (517) 335-5600

Problem Gambling Training

Problem gambling training available at: retailers.michiganlottery.com