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%.
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 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 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."