Free Michigan Lottery Template Prepare Document Here

Free Michigan Lottery Template

The Michigan Lottery form, specifically the Retailer Application revised in October 2019, serves as a comprehensive document for businesses interested in becoming authorized retailers to sell Michigan Lottery products. It outlines the stringent requirements, application procedures, and the responsibilities that come with the licensure, including financial, operational, and legal standards that must be met and maintained. For those looking to navigate the intricacies of this application process and ensure compliance with all listed requirements, a detailed understanding of the document is crucial.

To get started with filling out the Michigan Lottery Retailer Application form, click the button below.

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Entering the domain of the Michigan Lottery as a retailer involves navigating a comprehensive application process guided by the Michigan Lottery Retailer Services. Situated in Lansing, Michigan, this organization outlines critical requirements for securing a license to sell lottery products, each designed to uphold the integrity and financial responsibility within the lottery's operations. Prospective retailers are cautioned against making any financial commitments before receiving official approval. Important prerequisites include an acceptable credit history, a disclosure of any criminal records, and adherence to specific financial protocols such as the establishment of a designated bank account for Electronic Funds Transfer (EFT). Alongside a nonrefundable application fee, potential retailers must also consider annual renewal fees, technical requirements for lottery equipment, and adherence to business structure definitions. Furthermore, compliance with the Americans with Disabilities Act (ADA) is mandatory, indicating a comprehensive approach to inclusivity and legal compliance. Through this rigorous application procedure, the Michigan Lottery ensures that its network of retailers reflects its dedication to responsible business practices, securing the lottery's integrity and the interests of all participants.

Sample - Michigan Lottery Form

RETAILER

APPLICATION

Rev. October 2019

MICHIGAN LOTTERY

RETAILER SERVICES

101 E. HILLSDALE, BOX 30023 LANSING, MICHIGAN 48909

retailers.michiganlottery.com

MICHIGAN LOTTERY RETAILER - APPLICANT REQUIREMENTS -

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.

-OVER -

Authority: Act 239, 1972 as amended.

BSL-S-685A(5/19)

8.BUSINESS TYPE - to determine your business type use these definitions when completing the application. A Personal Data Sheet and signature is required before the application will be processed.

a.PROPRIETORSHIP - a business enterprise doing business under an assumed name, that is owned by one person (not registered with the Michigan Department of Labor & Economic Growth). A Proprietorship may use the owner’s Social Security number as a tax identification number or s/he may have a registered Federal Employer Identification Number (FEIN). The owner must complete and sign the contract and submit a Personal Data Sheet.

b.PARTNERSHIP - a business enterprise doing business under an assumed name that is NOT registered as a Partnership with the Michigan Department of Labor & Economic Growth. Each Partner must sign the contract and Personal Data Sheets must be provided for all partners.

c.LIMITED PARTNERSHIP - a business enterprise, doing business under an assumed name, that IS registered as a Partnership with the Michigan Department of Labor & Economic Growth. A General Partner must sign the contract and Personal Data Sheets must be provided for all general partners.

d.LIMITED LIABILITY COMPANY - a business enterprise, doing business under an assumed name, that is registered as an unincorporated association with the Michigan Department of Labor & Economic Growth. Members are required to sign the contract and submit Personal Data Sheets. (Members are defined as persons having ownership interest in a limited liability company.)

e.CORPORATION - a business enterprise organized as a corporate entity, doing business under an assumed name, that is registered with the Michigan Department of Labor & Economic Growth.

“Closely Held Corporation” means a corporation where a majority (more than 50 percent) of the outstanding voting stock is owned by ten or fewer persons. Any person authorized and empowered to execute contracts and bind the corporation to its terms and obligations may sign the contract. A Personal Data Sheet is required for each owner/shareholder, except that any individual owning less than 10 percent may be listed on a separate sheet of paper and is required only to provide name, Social Security number and percent of ownership.

“Non-Closely Held Corporation” means a corporation where a majority (more than 50 percent) of the outstanding voting stock is owned by more than ten persons. The Principal Operating Officer(s) is/are required to sign the application and submit Personal Data Sheet(s). (A Principal Operating Officer is defined as a person designated to conduct business in the State of Michigan on behalf of the corporation being licensed.)

f.To properly comply with the reporting requirements for the Internal Revenue Service, the Lottery must change the Retailer number assigned to you when you change your business structure. The Lottery defines a change in business structure as anytime your Taxpayer Identification Number, Corporate Number or business type (sole proprietor, partnership or corporation) changes.

When your Retailer number is changed, we must financially close out the old Retailer number. This will result in all activated books having to be settled and paid for, regardless of the length of

time they have been activated or the percentage of validations that have occurred within each book. Once a book has been activated we are unable to reassign the book, which is why payment is required.

You will then be assigned a new Retailer number and all confirmed books will be reassigned to this new number.

9.Please note that the accompanying Retailer license application requires that you indicate if your business is in compliance with the Americans with Disabilities Act (ADA). If you have any questions about compliance, please contact the State ADA Coordinator, at 517-373-3125.

If you have any questions, call RETAILER SERVICES (517) 335-5619.

Send completed documents to: Michigan Lottery

Attn: Retailer Services

P.O. Box 30023

Lansing, MI 48909

MICHIGAN LOTTERY

RETAILER SERVICES

101 E. HILLSDALE, BOX 30023 LANSING, MICHIGAN 48909

retailers.michiganlottery.com

MICHIGAN LOTTERY RETAILER - GENERAL REQUIREMENTS -

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.

-OVER -

Authority: Act 239, 1972 as amended.

BSL-S-685B(5/19)

17.The Retailer shall exercise due diligence in the operation of any installed equipment and shall immediately call 1-800-592-4040 and press option #1 when his or her equipment malfunctions. The Retailer shall refrain from attempting to perform any mechanical or electrical maintenance or repairs to the equipment except as instructed by Lottery or its authorized representative. If terminal malfunction is a result of Retailer noncompliance with Lottery guidelines or specifications, the Retailer may be responsible for repair and/or service charges. The Retailer shall replace ribbons, paper stock, and clear paper jams as required.

18.A Retailer does not have a property interest in the license granted by the Lottery or in the online Lottery terminal.

19.The Retailer will act in a fiduciary capacity with respect to all tickets accepted from Lottery or its authorized distributors until payment has been made.

20.Retailers are responsible for all tickets consigned to them. If tickets are stolen, then the Retailer shall report the theft to the Lottery and to local or state police authorities. The Retailer shall pay for the stolen tickets on the settlement date. The Retailer shall subsequently file a statement swearing to or affirming, under the penalty of perjury, the facts of the case. The Retailer shall furnish to Lottery a copy of the police report covering the theft. Following an investigation by Lottery and police authorities, Lottery may issue a refund to the Retailer. Refunds may only be issued if losses to Lottery have been mitigated by Retailer’s actions in reporting the tickets stolen and the Retailer’s appropriate accounting of tickets stolen.

21.The Retailer shall be responsible for the physical security of the Lottery equipment. Damage to the equipment/satellite communication lines attributable to the Retailer’s negligence will result in an assessment to the Retailer for the cost of equipment repair or replacement.

22.Retailers agree to hold Lottery and the State of Michigan harmless from any liability arising in connection with the sales or redemption of Lottery products.

23.If you plan to sell your business and the buyer wants to continue Lottery sales, a change of ownership must be approved by the Lottery. The buyer should submit an application approximately 45 days prior to closing. Contact Retailer Services for details (517) 335-5619.

MICHIGAN LOTTERY

RETAILER SERVICES

101 E. HILLSDALE, BOX 30023 LANSING, MICHIGAN 48909

retailers.michiganlottery.com

MICHIGAN LOTTERY RETAILER

- WEEKLY SETTLEMENT REQUIREMENTS -

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.

Authority: Act 239, 1972 as amended.

BSL-S-685D(5/19)

MICHIGAN LOTTERY

RETAILER SERVICES

101 E. HILLSDALE, BOX 30023 LANSING, MICHIGAN 48909

retailers.michiganlottery.com

MICHIGAN LOTTERY RETAILER

- PERFORMANCE REQUIREMENTS -

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.

Authority: Act 239, 1972 as amended.

BSL-S-685C(12/19)

MICHIGAN LOTTERY

RETAILER SERVICES

101 E. HILLSDALE, BOX 30023 LANSING, MICHIGAN 48909

retailers.michiganlottery.com

MICHIGAN LOTTERY RETAILER

- OPERATIONAL RULES -

PULL TAB GAMES



The following business types are eligible to sell Pull-Tabs: bar/restaurant, bowling center, golf, social club, adult entertainment, and recreation.

Retailers are prohibited from selling Pull Tab tickets for a price other than the price printed on the ticket.

Pull Tab tickets may be sold from vending machines specifically designed to dispense Pull Tab tickets, by waitstaff, from “fishbowl” type containers, or through special promotional packaging provided by the Lottery. The cost to purchase or lease the vending machine(s) is the responsibility of the Retailer unless the game is sold in special promotional packaging provided by the Lottery.

Retailers receive a 6% commission on each Pull Tab ticket sold and a 2% commission on any prize paid, unless otherwise stated in the Lottery contract.

Retailers are prohibited from selling Pull Tab tickets to a visibly intoxicated person.

Retailers may not end sales of a game until all tickets from the deal are sold or unless a game has expired.

Retailers may redeem winning tickets of $600 or less. Prizes of $601 and above must be claimed at a Lottery claim center or Lottery office.

Retailers must pay the full amount of all prizes redeemed from valid winning Pull Tab tickets.

A winning prize must be claimed prior to the expiration date listed on the Pull Tab ticket.

Retailers may not manipulate the Pull Tab game in order to prevent prizes from being awarded.

Retailer employees and owners may purchase, play and redeem Pull Tab tickets.

Authority: Act 239, 1972 as amended.

BSL-S-1893(5/19)

MICHIGAN LOTTERY

RETAILER SERVICES

101 E. HILLSDALE, BOX 30023 LANSING, MICHIGAN 48909 retailers.michiganlottery.com

NONPROFIT LICENSEES ONLY

- REQUIREMENTS -

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

The principal officers and Lottery chairperson, by signing the Retailer Contract/Application and Personal Data Sheet, agree to comply with the Lottery Act and Rules, or the requirements, instructions and directives of the Commissioner or Bureau.

The organization must comply with any Michigan Liquor Control Commission Rules or statutes. Specifically, organizations must adhere to prohibitions that no alcohol is sold to anyone who is not a bona fide member or guest of the club (as defined by statute).

Authority: Act 239, 1972 as amended.

BSL-S-2044(5/19)

MICHIGAN LOTTERY

RETAILER SERVICES

101 E. HILLSDALE, BOX 30023 LANSING, MICHIGAN 48909 Retailers.michiganlottery.com

MICHIGAN LOTTERY RETAILER

- PROBLEM GAMBLING INFORMATION -

- RETAIN THIS PAGE FOR FUTURE REFERENCE -

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.

WARNING SIGNS OF PROBLEM GAMBLING

 

• Missing work or sacrificing time with your

• Selling or pawning property to get money

family to gamble

for gambling

• Gambling is causing problems with your

• Spending money on gambling that should

family

have gone to pay your bills

• Lying about the time spent gambling or the

• Gambling more to recover your losses

money you’ve lost

• Committing a crime or considering

• Being unable to stop or control your betting

committing a crime to pay for gambling

• Borrowing money to gamble

• Feelings of hopelessness, depression, or

• Gambling to get money to solve financial

suicide

problems •

 

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

File Details

Fact Name Detail
Application Caution The Michigan Lottery advises applicants not to invest money or enter binding agreements in anticipation of obtaining a license until officially notified of application approval.
License Eligibility Applicants with satisfactory credit history and no criminal record negatively impacting the Lottery's integrity may be licensed. Disclosure of any criminal record on personal data sheets is mandatory.
Application Fee A non-refundable fee of $150 is required at the time of application, payable online or by check to the State of Michigan.
Electronic Funds Transfer Retailers must have a separate bank account for electronic funds transfers with the Lottery, ensuring 'good' funds are available for weekly settlements for ticket sales.
Governing Law The operation and licensing of Lottery retailers in Michigan are governed by Act 239 of 1972, as amended.

Michigan Lottery - Usage Steps

After deciding to apply for a Michigan Lottery Retailer license, the next steps involve accurately completing and submitting the required documentation. It is crucial to understand and comply with all the stipulations outlined in the application process to avoid any potential setbacks. Careful attention to detail can help ensure a smooth application journey. Below are the simplified steps to fill out the Michigan Lottery Retailer Application form.

  1. Read all the information provided in the Retailer Application instructions carefully, including the listed requirements and any associated conditions for becoming a licensed retailer.
  2. Before commencing with any binding agreements or investments related to your application, heed the Lottery's advice of waiting for official notification that your application has been approved.
  3. Ensure that you have an acceptable credit history and disclose any criminal records on the Personal Data Sheets as these factors influence the licensing decision.
  4. Gather all the items listed in the applicant checklist to ensure you are ready to proceed with the licensing process.
  5. Prepare the nonrefundable application fee of $150. This can be paid online at the provided payment link or by check payable to the State of Michigan.
  6. Set up a separate financial account for transactions with the Michigan Lottery, capable of handling Electronic Funds Transfers (EFT), and submit the completed EFT Authorization Form with your application.
  7. Ensure your business is not on probation for violation of the Lottery Act or its rules to have the $200 annual license renewal fee waived.
  8. Provide details regarding your business type, as specified (proprietorship, partnership, limited liability company, or corporation), including completing a Personal Data Sheet and obtaining the necessary signatures.
  9. Verify compliance with the Americans with Disabilities Act (ADA) and indicate this on your application.
  10. Contact RETAILER SERVICES for any questions and send the completed documents to Michigan Lottery, Retailer Services, P.O. Box 30023, Lansing, MI 48909.

Upon submitting the application and necessary documents, it is advisable to maintain open communication with the Michigan Lottery Retailer Services department for updates on your application status or any further instructions. Ensuring that all steps are followed meticulously will help facilitate a smoother application process.

Learn More on This Form

What are the initial steps to becoming a Michigan Lottery Retailer?

To begin the journey of becoming a Michigan Lottery Retailer, applicants must first meet specific requirements such as having an acceptable credit history and a clear criminal record that maintains the integrity of the Michigan Lottery. A completed application accompanied by a non-refundable fee of $150 is required. Additionally, setting up a separate financial account authorized for electronic funds transfers (EFT) by the Lottery is necessary. Each applicant must also provide a list of required documents as stated in the application checklist.

Is there a fee to apply for a Michigan Lottery Retailer License?

Yes, there is a nonrefundable application fee of $150 due at the time of application. This fee can be paid by check, made payable to the State of Michigan, or online via an approved payment platform.

What are the ongoing costs after obtaining the license?

After obtaining the license, Retailers are subject to an annual license renewal fee of $200. However, this fee may be waived for Retailers who are not on probation for violations of the Lottery Act or its Rules at the time of renewal. Additionally, Retailers will be responsible for all costs associated with maintaining sufficient electrical service and space requirements for Lottery equipment.

Are there specific business types that can apply for a Michigan Lottery Retailer License?

Yes, the Michigan Lottery specifies different business types including:

  • Proprietorship
  • Partnership
  • Limited Partnership
  • Limited Liability Company
  • Corporation (Closely Held and Non-Closely Held)
Depending on the business type, certain documentation and Personal Data Sheets might be required for processing the application.

How does a Retailer process electronic funds transfers?

Retailers are required to maintain a separate financial account at an institution that is a member of The National Automated Clearing House Association. The Michigan Lottery must be granted authorization to initiate electronic funds transfers to or from this account for net weekly settlements from the sale of tickets. It is crucial that the account has 'good' funds to cover transfers on the specified day of the week.

What happens if there is a change in the Retailer's business structure?

If there is a change in the business structure that alters the Taxpayer Identification Number, Corporate Number, or business type, the Retailer must notify the Michigan Lottery. Such a change necessitates the financial closure of the old Retailer number with all active books being settled and paid for. A new Retailer number will then be assigned.

What are the requirements for the physical setup necessary for Lottery equipment?

Retailers are recommended to provide a dedicated electrical circuit suitable for the lottery equipment, which should stay powered 24 hours a day. The electrical requirements include a 115 volts, 20 Amp. 60 HZ service with isolated ground and a 4 outlet box that accommodates 3 prong, “U” grounded type plugs within five feet of the terminal location. Retailers are expected to cover the installation and ongoing costs associated with this setup.

What stipulations are placed on the selling and redemption of Michigan Lottery tickets?

Retailers must adhere to strict guidelines such as:

  • Tickets can only be sold at the licensed premises
  • Instant tickets assigned to a location cannot be exchanged with other Retailers
  • All winning tickets up to $600 must be redeemed by the Retailer
  • Retailers must use all promotional materials provided
  • Compliance with the established price for tickets, though promotions may allow selling them for less
  • Prohibition against purchasing winning tickets or offering additional incentives for the sale or redemption of Lottery tickets

How are commissions determined for Retailers?

Upon licensure, Retailers earn a commission of 6% on each ticket sold from the terminal, a 5% sales commission on cashless transactions for cashless fitted equipment, and a 2% commission on any prize paid. Additional bonus commissions may also be available as outlined in Lottery directives.

What should a Retailer do if lottery equipment malfunctions?

When equipment malfunctions, the Retailer is required to immediately call the provided support number and follow instructions. Attempting to repair or perform maintenance on the equipment is prohibited unless explicitly instructed by the Lottery or its authorized representatives. Routine maintenance like replacing ribbons or clearing paper jams, however, is the responsibility of the Retailer.

Common mistakes

Filling out the Michigan Lottery Retailer Application requires attention to detail. Unfortunately, applicants often make mistakes that can delay or negatively impact the approval process. Here are six common missteps:

  1. Not waiting for official approval before investing in Lottery-related expenses. The Michigan Lottery strongly advises against making any investments or binding commitments based on the expectation of obtaining a license or ownership change approval until official notification has been received.
  2. Omitting criminal record details on the application. Disclosure of any criminal record on personal data sheets is mandatory. Failing to do so can result in the denial of the application or revocation of the license.
  3. Not completing the Electronic Funds Transfer (EFT) Authorization Form or providing necessary bank account details. The Lottery requires a separate financial account for EFTs and mandates that retailers have “good” funds available for net weekly settlements from ticket sales. Neglecting this step can postpone the receipt of Lottery products.
  4. Paying the nonrefundable application fee incorrectly or not at all. A $150 fee is required at the time of application submission. It can be paid online or via check payable to the State of Michigan, and overlooking or incorrectly processing this fee can stall the application process.
  5. Overlooking the requirement for a dedicated electrical circuit for Lottery equipment. Retailers must ensure that the installation site for Lottery equipment has a dedicated 115 volts, 20 Amp, 60 HZ service with an isolated ground. Failing to meet this requirement can delay the installation of Lottery equipment.
  6. Misidentifying the business type on the application. Accurately determining and reporting the business type (e.g., Proprietorship, Partnership, Limited Liability Company, Corporation) is crucial. Misclassification can lead to complications or delays in the application process.

Even small errors in the application process can lead to significant hurdles. Interested retailers should carefully review the application requirements and double-check their submissions for accuracy. It is also recommended to consult with Michigan Lottery Retailer Services for any questions or clarifications to ensure a smooth and successful application process.

In summary, meticulous attention to the details of the Michigan Lottery Retailer Application is essential. Avoiding these common mistakes can aid in a more seamless and efficient licensing experience, ultimately facilitating the sale of Lottery products.

Documents used along the form

When applying to become an authorized retailer of Michigan Lottery products, various supporting documents and forms complement the Retailer Application in ensuring a comprehensive submission. Beyond the basic application, these materials are vital for a smooth licensing process and for maintaining compliance with the lottery's operational standards. Here’s a closer look at some of the commonly used documents and forms alongside the Michigan Lottery Retailer Application:

  1. Personal Data Sheet: As mentioned in the application requirements, this document collects personal information on the applicants, including owners and partners, ensuring background checks are feasible.
  2. Electronic Funds Transfer (EFT) Authorization Form: This form is crucial for setting up automated transactions for sales settlements, making the financial operations streamlined and efficient.
  3. Proof of Business Type Documentation: Whether an applicant operates as a sole proprietorship, partnership, or corporation, documents affirming the business structure are required. This could include state registration documents or contracts.
  4. Credit History Report: A clean credit report is often a prerequisite for lottery licensing. This document enables the Michigan Lottery to assess financial reliability.
  5. Criminal Background Check: A thorough background check, necessitated by disclosures on the personal data sheet, is crucial for validating the integrity of the retail operations and its owners.
  6. Proof of Bank Account: A document like a voided check or a bank letter verifies the existence of a separate financial account for lottery transactions, which is a requirement for licensing.
  7. ADA Compliance Certification: This form or document confirms that the retail location complies with the Americans with Disabilities Act, ensuring accessibility for all customers.
  8. Electrical Certification: For retailers expected to provide dedicated circuits for lottery equipment, certification from a qualified electrician may be required to confirm the setup's safety and reliability.
  9. Michigan Department of Labor & Economic Growth Registration: Proof of registration with this department underlines compliance with state business regulations, relevant for corporations, partnerships, and LLCs.
  10. Financial Responsibility Statement: This might include statements or documents like a bond (if required by the Lottery) that demonstrate the retail applicant’s financial accountability and capacity to comply with financial obligations.

Collecting and submitting these documents alongside your Michigan Lottery Retailer Application forms the groundwork for a potentially successful lottery retailer operation. Each document plays a specific role in showcasing the applicant’s readiness and compliance with both legal and operational standards set by the Michigan Lottery. Thus, attention to detail and thorough preparation can significantly streamline the approval process.

Similar forms

  • The Michigan Lottery form shares similarities with business license applications used by municipalities for the establishment of local businesses. Like these applications, the Michigan Lottery form requires detailed information about the business, including type, ownership structure, and financial information. Both types of documents necessitate disclosures about the applicants' backgrounds, including criminal records, and specify operational requirements for adherence to regulatory standards. Additionally, both set forth financial obligations, such as application and renewal fees, and mandate compliance with specific operational guidelines to maintain licensure.
  • Another document the Michigan Lottery form resembles is the Electronic Funds Transfer (EFT) Authorization Form required by many financial institutions. This similarity is especially noted in the section of the lottery form that mandates retailers to maintain a separate bank account that allows for EFTs. Like standalone EFT authorization forms, this part of the lottery application outlines the requirements for enabling automatic transfers, the need for providing banking details (e.g., a void check or a bank letter), and the responsibilities of the account holder to ensure sufficient funds for transactions. Both documents serve to formalize the arrangement between the parties for electronic financial exchanges, defining the terms, conditions, and responsibilities to facilitate such transfers.
  • The form is also akin to the Internal Revenue Service (IRS) reporting forms, such as the W-9 request for taxpayer identification number and certification. The Michigan Lottery form's sections that discuss the need for a tax identification number due to changes in business structure or ownership echo the requirements found in IRS documentation for reporting and maintaining accurate tax records. Both the lottery application and IRS forms are pivotal in ensuring compliance with federal tax laws, involving declarations about the identity, status, and tax obligations of the entity or individual. They play significant roles in the financial and legal accountability mechanisms of entities and individuals within the United States.

Dos and Don'ts

When filling out the Michigan Lottery Retailer Application, there are certain practices you should follow to ensure a smooth process and compliance with the legal requirements. Equally important are common missteps to avoid that could result in delays or the denial of your application. Here's a guide to help you navigate the application process effectively.

Things You Should Do

  1. Review all the requirements and conditions listed in the application carefully to ensure that your business is eligible and prepared to meet the specific needs of the Michigan Lottery.
  2. Disclose any criminal records accurately on the Personal Data Sheets. Honesty in this area is crucial for a transparent evaluation process.
  3. Ensure you have the necessary funds and banking arrangements in place for the Electronic Funds Transfer (EFT), as specified by the Lottery, to facilitate smooth weekly settlements.
  4. Prepare your site according to the specifications provided by the Michigan Lottery, including the installation of a dedicated electrical circuit if required, to accommodate lottery equipment.
  5. Make sure to sign the application and include a Personal Data Sheet for every owner or principal involved in the business, as per the business type's requirements.

Things You Shouldn't Do

  1. Do not invest money or enter into any binding agreements based on the assumption that the license will be granted until you have received official notification of approval from the Michigan Lottery.
  2. Avoid misrepresenting any facts about your criminal background or any other aspect of the application. Inaccuracies or omissions can lead to severe repercussions, including denial of the application.
  3. Do not neglect to set up a separate EFT account for Lottery settlements. Failure to establish this account as required can delay the application process or the initial stocking of lottery products.
  4. Do not underestimate the importance of complying with the Americans with Disabilities Act (ADA) and other legal requirements. Ensure your business complies with these regulations before applying.
  5. Refrain from selling lottery tickets before obtaining your official license and activation of lottery equipment by the Michigan Lottery. Premature sales activities are prohibited and could jeopardize your application.

Misconceptions

When it comes to navigating the Michigan Lottery Retailer application process, several misconceptions can trip up prospective retailers. Understanding the facts will help you navigate the process smoothly.

  • Misconception 1: The application process is only for new retailers.

    Fact: The application process is also crucial for current retailers undergoing changes such as ownership shifts. Every significant change demands notification and, in some situations, a new application.

  • Misconception 2: You need to secure equipment or premises before applying.

    Fact: It's advised not to make any significant investments before receiving approval from the Michigan Lottery. Securing a location or purchasing equipment should wait until after official notification of application approval.

  • Misconception 3: A clean criminal record is not essential for acquiring a license.

    Fact: An acceptable credit history and the absence of a criminal record are crucial for licensure. Any criminal record must be transparently disclosed during the application process.

  • Misconception 4: The nonrefundable application fee is negotiable.

    Fact: The application fee is fixed at $150 and is nonrefundable, emphasizing the need for applicants to ensure their eligibility and complete all required documentation accurately before applying.

  • Misconception 5: Any bank account can be used for transactions with the Michigan Lottery.

    Fact: Retailers must have a specific account that allows for electronic funds transfers (EFT) for financial transactions related to the sale of lottery tickets. This ensures efficient and secure financial dealings between retailers and the Michigan Lottery.

  • Misconception 6: The annual license renewal fee applies to everyone.

    Fact: The renewal fee of $200 is waived for retailers who are not on probation at the time of renewal, emphasizing the importance of maintaining compliance with the lottery's rules.

  • Misconception 7: The electrical setup for lottery equipment is not a big concern.

    Fact: Prior to the installation of lottery equipment, retailers must provide a dedicated electrical circuit to ensure the equipment operates correctly and securely. This requirement underscores the critical nature of creating an appropriate physical infrastructure for lottery operations.

By demystifying these misconceptions, prospective and current Michigan Lottery retailers can better prepare for a successful application process and maintain compliance, thereby ensuring a thriving partnership with the Michigan Lottery.

Key takeaways

When considering becoming a Michigan Lottery retailer, there are several requirements and key points potential retailers should understand:

  • Prospective Michigan Lottery retailers should not make any investments or enter into any agreements based on the expectation of license issuance until they receive formal approval from the Lottery.
  • The approval process for applicants involves evaluating their credit history and criminal record. A clean record is likely to favor the application, and the Lottery may require a bond as part of the licensing conditions.
  • To become licensed, retailers must submit several specific documents as outlined in the provided checklist, demonstrating their preparedness and suitability for selling lottery products.
  • There is a non-refundable application fee of $150, which can be paid online or by check, signaling the financial commitment required at the initial stage of application.
  • It is necessary for retailers to maintain a separate bank account for transactions related to the Michigan Lottery. This account must allow for electronic funds transfers (EFT) for weekly settlements. Proper authorization for EFTs must be provided at the time of application.
  • Retailers are subjected to an annual license renewal fee of $200, which can be waived if the retailer is not under probation for any violations of the Lottery Act or rules.
  • Before the installation of lottery equipment, retailers are advised, and in some cases required, to have a dedicated power circuit available. This requirement ensures that the lottery terminal operates efficiently and without interruption.
  • Diverse business structures from sole proprietorships to corporations have specific requirements when applying to be a Michigan Lottery retailer. Documentation such as Personal Data Sheets and identification numbers corresponding to the business type are necessary for the application process.
  • Retailers must ensure their business complies with the Americans with Disabilities Act (ADA), as part of the application includes an indication of compliance with this federal legislation.
  • A strong focus is placed on responsible handling and selling of Lottery tickets, including reconciliation and security measures to prevent and manage theft, malfunctions, and other issues that may arise during operations.

Understanding these key takeaways can provide a solid foundation for businesses considering the opportunity to become a Michigan Lottery retailer, ensuring they meet the necessary requirements and are prepared for the responsibilities involved.

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