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Plinko paying off for operators and OLG

 

WinnerIn just six weeks, Ontario c-store operators have help drive $29,643,900 in Plinko sales due, in part, to a commission-based incentive from OLG.
OLG announced in December that retailers in Ontario would earn 30% sales commission for every pack of $5 Plinko tickets activated from January 4 to March 31, 2021. This is an increase of 22% over the regular commission of 8%.
The move was designed to thank and support c-store operators, while also driving customer awareness and sales growth of this new lottery game, which launched January 1, 2021. As part of the Plinko promotion, retailers earn $105 per pack activated vs $28 based on regular commission of 8%: The promotion is slated to last three months.
“This is the most successful launch the OLG has ever seen,” says Dave Bryan, president of the Ontario Convenience Stores Association, which last fall petitioned the provincial government to recognize and reward the key role that c-store operators play in driving revenue for the Ontario Lottery and Gaming Corporation by increasing lottery commissions across the board by 2%.
While this hasn’t happened yet, the Plinko incentive is a good first step.
Bryans points out this is the first time the OLG has moved off of commission standards and it’s paying off for everyone involved, with motivated operators earning $8.9 million in commissions so far, compared to the $2.4 million they would have earned at the usual rates. “It shows that promotion, plus incentive, plus the support of small business gets record sales and helps small business.”

READ: OLG shares best practices for lottery sales during the pandemic

Despite COVID-19, lottery continues to be a significant traffic generator for c-stores. So far this year, convenience stores account for 84.6% of the total lottery business in the province – 44 weeks into the OLG’s fiscal year, that amounts to $224 million in commissions YTD, compared to $191 million this time last year.
“Lottery brings in the traffic, which drives sales of chips and pop and everything else,” says Bryans, who encourages operators to “continue to push these new products as leverage for future discussions with OLG.”
As the cost of doing business for c-stores continues to increase—not to mention the added financial and related challenges brought on by the pandemic—the OCSA argues that this is an ideal opportunity for the province to support the channel and small business owners.
  • C-stores account for 76% of Ontario lottery sales for OLG.
  • During the pandemic, this increased to almost 85%.
  • C-stores facilitate $2.4 billion in lottery sales every year for the province.
  • C-stores earn 5% on standard electronic tickets and 8% on scratch tickets.
  • The margins are slim, but the value for c-stores is in generating foot traffic.
  • As more customers pay with credit cards, c-stores are being hit with transaction fees of 2 to 2.5% on lottery purchases, further reducing margins.
  • Lottery commissions haven’t increased in more than 30 years.
  • OCSA is suggesting a 2% increase in commissions.
  • An additional 2% at point of sale for lottery equals about $5,000 per store.
  • This would inject an estimated $30 million into the convenience channel.

 


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OLG gives operators a major incentive to promote new Plinko game

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Retailers in Ontario will earn 30% sales commission for every pack of $5 Plinko tickets activated from January 4 to March 31, 2021. This is an increase of 22% over the regular commission of 8%.

The Ontario Lottery and Gaming Corporation says the move is a way to “thank all our retailers and support you for your hard work through this challenging time due to the pandemic.”
It’s also a strategy to drive customer awareness and sales growth of this new lottery game, which launches in the new year.

Retailers will earn $105 per pack activated vs $28 based on regular commission of 8%: The promotion is slated to last three months.

This fall, the Ontario Convenience Stores Association petitioned the provincial government to recognize and reward the key role that c-store operators play in driving revenue for the Ontario Lottery and Gaming Corporation by increasing lottery commissions across the board by 2%.

As the cost of doing business for c-stores continues to increase—not to mention the added financial and related challenges brought on by the pandemicthe OCSA argues that this is an ideal opportunity for the province to support the channel and small business owners. 

  • C-stores account for 76% of Ontario lottery sales for OLG.
  • During the pandemic, this increased to 85%.
  • C-stores facilitate $2.4 billion in lottery sales every year for the province.
  • C-stores earn 5% on standard electronic tickets and 8% on scratch tickets.
  • The margins are slim, but the value for c-stores is in generating foot traffic.
  • OLG requires retailers to apply for a terminal at their own expense: The cost takes many months to recover.
  • As more customers pay with credit cards, c-stores are being hit with transaction fees of 2 to 2.5% on lottery purchases, further reducing margins.
  • Lottery commissions haven’t increased in more than 30 years.
  • OCSA is suggesting a 2% increase in commissions.
  • An additional 2% at point of sale for lottery equals about $5,000 per store.
  • This would inject an estimated $30 million into the convenience channel.

In a statement to members, OSCA president Dave Bryans pointed out this if the first time the OLG has moved off of commission standards: “We are hoping this will lead to additional promotions or increased commissions for the entire channel allowing for a better business future for all.”


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Ontario offers loan of up to $500 million to lottery and gaming corporation

OLGOntario is extending a line of credit of up to $500 million to its lottery and gaming agency.

The province says the loan will temporarily support the Ontario Lottery and Gaming Corporation’s operational costs during the COVID-19 pandemic.

The loan will also help OLG meet its contractual obligations over the short term as its operations remain closed.

The government says the loan will ensure the OLG’s casino operations can quickly resume after shutdown orders lift in order to generate revenue for the province.

A spokeswoman for the province’s finance minister says the government is confident OLG will be able to repay the line of credit once emergency orders loosen.

She says OLG will remain in contact with public health officials to determine when it is safe for its facilities to reopen.

Meanwhile, c-stores continue to work in partnership with OLG through the sale of lottery tickets in store. OLG is adding a six-month (183 days) extension for lottery prize claims with an original expiry date from March 17, 2020 up to and including September 17, 2020. This extension applies to all tickets sold through OLG lottery terminals, on PlayOLG.ca and INSTANT tickets.

The move is meant to serve Ontario lottery customers’ whose ability to claim prizes may have been affected by the COVID-19 pandemic.  The OLG Prize Centre in Toronto remains temporarily closed to the public. In response, OLG has increased the limit for mail-in prize claims to $49,999.90. Unexpired lottery prizes claims of $50,000 or more may be made once the Prize Centre is re-opened.

With files from Michelle Warren.


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OLG shares best practices for lottery sales during COVID-19 pandemic

Screen Shot 2020-03-23 at 5.15.42 PMThe Ontario Lottery and Gaming Corporation today released a directive of best practices design to reduce risk and help prevent the spread of COVID-19.

In it, the OLG said: “We support all our retail partners and any decisions that they make about their business during this evolving situation. We thank you for your continued partnership.”

Minimize contact

  • Please follow your store’s current policies regarding best practices for physically handling any product.
  • To avoid contact, ask customers to point to the INSTANT ticket they want.
  • Have your customers use the Ticket Checker to check their tickets.
  • Have customers pay with tap when possible at locations equipped to take tap.
  • Tell customers to download the OLG Lottery App as a way to check their tickets from home.
  • Try to promote Advance Play.
  • Encourage customers to sign tickets before coming to the store (so they do not have to use in-store pens).

 Disinfect

  • Keep disinfectant close by and regularly sanitize your Silent Sellers, Playstands and any pens at the cash area or Playstand that are used by customers.
  • Wash your hands as often as possible.

Stay informed

  • Pay attention to OLG lottery terminal messages and pop-ups.
  • Pay attention to public health authorities.

 

In addition, the OLG Prize Centre at Yonge and Dundas Street in Toronto is temporarily closed.

During this closure, please advise winners:

  • Customers can continue to redeem lottery prizes of up to $999.90 at any one of the 10,000 lottery retail outlets provincewide. The payment of these prizes is subject to the availability of cash at specific outlets
  • Customers can continue to mail their prize claims of up to $9,999.90, following the instructions on OLG.ca or by calling the OLG Support Centre at 1-800-387-0098
  • Lottery prizes of $10,000 or more may be redeemed once the Prize Centre is re-opened. In the meantime, OLG is assuring customers that all lottery prizes will be redeemed per their terms and conditions on OLG.ca. The organization is looking at extending the 12-month time period for the redemption of lottery products sold through lottery terminals and PlayOLG.ca; Details to come. The extension would also apply to INSTANT tickets.

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OLG supports the industry with Silver Sponsorship participation in the Toronto Convenience U CARWACS Show!

As a Silver Sponsor, OLG helps to make the show’s goal of connecting and learning a reality for retailers, distributors and manufacturers. Read more