How do lottery retailers make money?
The selling bonus gets the headlines, but most of a store's lottery income comes from commission on every ticket it sells. Louisiana pays retailers 5% of sales. Delaware pays 7% on tickets sold over the counter and 5% on tickets sold through self-service machines. At 5%, a store selling $10,000 of tickets a week earns about $500 a week, whether or not anything wins.
Many states also pay a cashing commission for paying out small prizes at the counter, to cover the cash and paperwork involved. Louisiana's retailer page lists 0.5% on prizes of $1 to $25, rising in steps to 2% on prizes of $201 to $600.
The selling bonus is the third piece: a one-time payment, set by each state's rules, for selling a jackpot winner or another large prize.
How much is the selling bonus?
Each state sets its own amounts. These three come from the lotteries' own retailer material:
| State | Jackpot bonus | Other bonuses |
|---|---|---|
| Texas | $250,000 for a Powerball or Mega Millions jackpot ticket, split equally if more than one Texas store sells a winner; $25,000 for a Lotto Texas jackpot; $5,000 for a Texas Two Step jackpot | $10,000 for a Powerball or Mega Millions second-tier winner; $10,000 for a scratch ticket prize of $500,000 or more, $5,000 for $250,000 to $499,999 |
| Louisiana | Powerball and Mega Millions: the greater of $40,000 or 1% of Louisiana's contribution to the prize pool; Lotto and Easy 5: 1% of the prize | Mega Millions match-5: $20,000; Powerball match-5: 1% of the prize or a set amount between $10,000 and $20,000 |
| Delaware | $10,000 for a Powerball jackpot ticket; $5,000 for a Lotto America jackpot | 1% of instant-game prizes of $10,000 or more |
Sources: the Texas Lottery retailer bonus chart, Louisiana's retailer page and the Delaware Lottery incentives page. Texas also caps the program: it has $2.01 million for all retailer bonuses between September 1, 2026 and August 31, 2027, and may suspend bonuses for the rest of that period once the budget is spent.
Other states pay more or less, some pay bonuses on second-tier prizes, and schedules change. Your state lottery's retailer or incentives page is the place to check the current figures.
Does the bonus come out of the winner's prize?
No. The retailer bonus is paid by the lottery, not deducted from the prize. A jackpot winner receives what the game's prize rules say, whether the store got $10,000 or $250,000. Money paid to retailers does come out of lottery revenue that would otherwise go to prizes or to the state's beneficiaries, which is one reason states cap the bonuses. The split is broken down in where does lottery money go.
For the store, the bonus is business income. For a small independent shop, a six-figure payment is a big event, which is why owners often appear in local news coverage when a jackpot is sold.
Is a "lucky store" actually lucky?
No. Stores that sell more winners sell more tickets. A shop that sells 50,000 tickets a year will, on average, produce ten times as many winners as one that sells 5,000. Busy locations near highways, transit stops and state borders sell a lot of tickets, and border stores also get buyers from neighboring states, which is legal (see buying tickets in another state).
A store that sells a big winner usually advertises it, which brings in more buyers and more sales, and so more winners later. Every ticket still has the same odds wherever it's printed. The same mistake in a different form is explained in hot, cold and due numbers.
How does a store become a lottery retailer?
A business applies to its state lottery, which sets its own requirements and places the ticket terminal. In Texas the lottery is now run by the Texas Department of Licensing and Regulation; who runs the Texas Lottery now explains the change. Check your state lottery's "become a retailer" page for the application, fees and checks involved.
Retailer bonus FAQ
How much does a store get for selling a winning lottery ticket?
It depends on the state. Texas pays $250,000 for a Powerball or Mega Millions jackpot ticket, Louisiana the greater of $40,000 or 1% of its contribution to the prize pool, and Delaware $10,000 for a Powerball jackpot.
Does the retailer bonus come out of the winner's prize?
No. Selling bonuses are paid by the lottery, not deducted from the jackpot, so the winner's prize is the same regardless of what the store receives.
How much commission do lottery retailers make per ticket?
Louisiana pays 5% of sales, and Delaware pays 7% over the counter (5% at self-service machines). Many states also pay a small cashing commission for paying out prizes; Louisiana's runs from 0.5% to 2% depending on prize size.
Are some stores luckier for lottery tickets?
No. Stores that sell more winners sell more tickets. Every ticket has the same odds regardless of where it was bought.
Wherever your ticket came from, you can check it against the latest results on our results homepage.
