Sales Agent Selection Criteria

General Information

The Maine Lottery has become successful by relying on a network of enthusiastic and effective retailers.

Only licensed retailers within the State sell Maine Lottery tickets. Licenses are approved following the requirements of the State Lottery Law, Section 8 MRSA and the rules, regulations and procedures of the Maine Lottery.

License applications can be obtained online or by contacting the Lottery at:

  • Maine State Lottery
  • Licensing Division
  • 8 State House Station
  • Augusta, ME 04333
  • (207) 287-3721
  • (800) 452-8777(In Maine Only)

Instant Tickets Come First

Anyone interested in obtaining a license to sell Maine Lottery tickets must file an application. No license will be issued to anyone who is in business exclusively for the purpose of selling Lottery tickets in the State. Applicants must meet these basic requirements:

  • Be at least 18 years of age.
  • Have no tax delinquency and otherwise comply with state tax laws.
  • Retailers must follow all procedures, policies, rules and regulations pertaining to the Maine State Lottery.
  • Agree to make the Lottery’s product line readily available to players and prominently display point-of-sale material.
  • Agree to maintain current and accurate records of all operations pertaining to Lottery ticket sales in conformity with the rules and regulations of the Lottery.

When an application is submitted, the applicant agrees to the following:

  • A credit check
  • Open and maintain a checking or savings account for electronic transfer of Lottery Funds.

Maine Lottery retailers receive an 7% commission on all Instant Lottery tickets sales and 5% on all On-Line sales. Retailers also receive a 1% bonus on any single winning instant game ticket valued at $1,000 or more, which was sold by them.

ON-LINE GAME TERMINALS (Separate Application)

Anyone requesting a Maine On-Line terminal must be currently operating a business and selling Instant Lottery tickets for a minimum of 6 (six) months. Retail outlets are surveyed and data is collected to decide which outlets will maximize sales. The following criteria are reviewed and verified with the applicant for all locations under consideration:

  • The applicant’s demonstrated ability to sell instant tickets.
  • Willingness to advertise and promote products.
  • Demographics – potential customer data such as population.
  • Proximity to other On-Line Game terminals.
  • Must be easily accessible to the public.
  • The retailer must prominently display Lottery point-of–sale advertising and other Lottery information material.
  • A minimum on-line sales average of $350 per week over 12 consecutive weeks must be maintained. Failure to maintain this average may result in the removal of the on-line terminal.

Requirements For New On-Line Licensees

If an applicant’s location is selected for placement of an on-line machine, the applicant must then satisfy the following mandatory requirements.

  1. Satisfactory Credit History: A current credit history of the licensee will be requested from the Maine Credit Bureau. A review of the credit on instant ticket products will be conducted and must be satisfactory to the Bureau.
  2. Account of Electronic Transfer: A licensee must show evidence of the proper establishment of an account for the electronic transfer of lottery funds.
  3. Six-month Trial Period. Required Level of Sales: A licensee must operate the on-line machine for a period, during which time the level of sales must be at a minimum of $350 per week of on-line sales for the last twelve weeks of the six-month trial period. During the six-month trial period, the bureau will be available to work with an applicant on a plan to increase on-line sales.
  4. Installation Fee: A licensee must pay a one-time fee of $200 for the installation of the on-line machines. The $200 installation fee will be swept from the licensee’s account in $25 increments over an eight week period. This amount will show up as a debit memo on the licensee’s weekly on-line statement.
  5. 5% Commission on Sales: Once a licensee begins selling on-line tickets, a licensee will receive 5% commission on sales generated by the licensee’s terminal.

If a licensee fails to meet the financial criteria required of on-line licensees, the bureau may remove the licensee’s on-line terminal.

ON-LINE SELECTION PROCESS

The objectives of the Maine State Lottery Commission are to maximize revenues and meet customer needs.

The following criteria are used to assist the Lottery Commission in the placement of on-line terminals. A representative from the Lottery will conduct an on-site evaluation at an applicant’s location. During this comparative selection process, an application is reviewed in a pool with other applications within the same geographic location.

  1. Geographic Location: The Lottery will evaluate the need for a terminal in the area based upon population, public accessibility and on-line sales levels in that geographic location. If it is determined that due to market saturation an on-line terminal is not needed in an applicant’s geographic location, no terminal will be allocated. If an applicant meets the geographic location requirement, the following criteria will then be considered in the order they appear below.
  2. Instant Ticket Sales:
    1. Volume: An applicant’s level of instant ticket sales must be similar to the level of instant ticket sales in other locations in the same market area. The commission will make this determination and will compare only locations that sell instant tickets, not on-line tickets.
    2. Variety of Games: An applicant must sell a minimum of 1/3 of the Lottery’s available instant games.
    3. Promotional Point of Sales Materials: An applicant must show evidence of continuous use and proper display of promotional point of sale material for instant ticket games.
  3. Store Hours: An applicant must operate the applicant’s location until at least 8:00 p.m. Monday through Saturday in order to maximize revenues of on-line games.

Under limited circumstances the Director may waive any or all of the criteria.

COLLECTION PROCEDURE FOR NON-SUFFICIENT FUNDS

Agents who sell only Instant Tickets:

  1. The agent will be notified by phone that an NSF has occurred. A service charge will be charged for each occurrence.
  2. The agent will be immediately inactivated. Inactivation means that an agent cannot order tickets.
  3. A redraft (preferred method), certified check, bank check, or money order is requested to clear up the agents account.
  4. When the NSF is rectified, the agent will be reactivated.
  5. If payment is not received within a reasonable time period (5-7 days), the agent will receive a letter requesting payment within five (5) working days.
  6. If payment is not received by the specified date, the agent will be terminated. The money owed to the Lottery Commission will be collected by the Collection Agency.

Agents who sell Instant and On-Line Tickets:

  1. The agent will be notified by phone that an NSF has occurred. A service charge will be applied to each occurrence.
  2. The agent's on-line machine will be immediately inactivated. Inactivation means an agent will not be able to order tickets or operate the on-line machine.
  3. A redraft (preferred method), certified check, bank check, or money order is requested to clear up the agents account.
  4. When the NSF is rectified, the on-line machine will be reactivated.
  5. If payment is not received within a reasonable time period (5-7 days), the agent will receive a letter requesting payment within five (5) working days.
  6. If payment is not received by the specified date, the on-line machine will be removed and the license will be terminated. The money owed to the Lottery Commission will be collected by the Collection Agency.

AGENT ESCROW ACCOUNT

HANDLING OF NON-SUFFICIENT FUNDS (NSF) TRANSACTION:

  1. Upon the Lottery's receipt of a third non-sufficient funds notice (NSF) in a 12 month period, the agent's license will be suspended and the agent will be required to establish an Escrow with the Lottery which will be used to offset any EFT sweep amounts or other amounts due the Lottery. The Agent's license will not be reactivated until the NSF has been cleared and the Escrow account has been established. Escrow monies will not be used to offset an NSF unless a license has been terminated.The Escrow amount will be the average of three weeks of the balance due amounts for both the instant and on-line games with a minimum amount of $1,000.
  2. This Escrow amount will be in the form of a Money Order, Cashier's Check or Certified Check made payable to: Treasurer, State of Maine, and will be deposited with the Treasury Department for a period of one year from the last NSF. Interest on the Escrow will be added to the balance. After a 12 month period, should there be no NSF's, the agent may request in writing the return of the Escrow with interest.
  3. Should an agent be deemed delinquent and uncollectible, the Escrow money on deposit will be used to offset the amount due and all activities with the Lottery will be suspended. Any remaining unpaid balances will be turned over to a collection agency.

TERMINATION OF AN AGENT'S LICENSE

  1. Should an agent accumulate three additional NSF's during a 12-month period following the required Escrow account, their license will be terminated.
  2. Following a 12-month period from the date of termination an agent may reapply for a license.

10/04/04
Approved by Commission: 07/26/94