North American lotteries paid $5 billion in agent commissions and bonuses in fiscal 2017, according to LaFleur’s 2018 World Lottery Almanac. U.S. lottery commissions totaled $4.5 billion; Canadian lottery commissions amounted to C$596.6 million.

This all-new La Fleur’s Lottery Retail Report also provides a breakdown on sales districts, sales regions and sales offices (by state and province) where this information is supplied. It also lists the method of ticket distribution (United Parcel Service, FedEx, couriers and LSRs).

It tracks the number of Lottery Sales Representatives (LSRs) employed by U.S. and Canadian lotteries. (Note: LSRs are also known as District Sales Representatives (DSRs).

Finally, lotteries were surveyed on whether a LSR incentive plan is offered. Currently, there are more than 1,900 LSRs employed in the U.S. and 167 LSRs in Canada.

LSR Programs

A breakdown of LSR incentive plans offered in fiscal 2018 follows below:

  • Arizona: “At this time, we do not offer a Territory Manager incentive. It was discontinued over a year ago because all lottery employees became eligible for a performance-based incentive.”o Colorado: Eligible sales personnel can earn bonus dollars if they exceed their Scratch goal for their respective territory, district or chain.
  • Idaho: A rep can earn up to an additional $200 a month based on goal achievement of non multi-state games.
  • Illinois: The lottery has used an incentive plan for LSRs since 2013.
  • Indiana (Hoosier Lottery): The entire sales organization is currently incentivized with quarterly performance-based incentives focused on optimizing sales in their territories and tied directly to financial goals and product focus for the time period. These include (but are not limited to) sales growth, merchandising initiatives, retailer network expansion, “curb-to-counter” merchandising, ITVM optimization, and instant predictive ordering efficiencies.
  • Kentucky: No details provided.
  • Michigan: District Sales Representatives can earn up to $1,500 per quarter ($6,000 per year) if the percentage of sales in their area of responsibility exceed a quarterly sales goal, expressed as a percentage increase in sales. Each quarter sales goals and brackets are established and employees will receive the monies awarded to that bracket, providing the employee meets all other eligibility requirements.
  • Minnesota: LSRs can each earn up to $10,000 a year based on this criteria:
    • – $1,000 if territory sales hit 102% of overall scratch ticket sales goal
      – $1,500 if territory sales hit 104% of overall scratch ticket sales goal
      – $2,500 if territory sales hit 106% of overall scratch ticket sales goal
      – $1,000 if territory sales hit 102% of $1, $2, and $5 scratch ticket sales goal
      – $1,500 if territory sales hit 104% of $1, $2, and $5 scratch ticket sales goal
      – $2,500 if territory sales hit 106% of $1, $2, and $5 scratch ticket sales goal
  • Nebraska: The lottery’s LSRs are employees of IGT and work under a sales-based incentive plan.
  • New Hampshire: LSRs can earn a quarterly bonus of $1,000 or $2,000 when showing an increase in quarterly sales of 7% or 11.2% respectively when comparing current quarterly fiscal year sales to prior quarterly fiscal year sales. They can also earn an annual bonus of $2,000 or $4,000 when showing an increase in fiscal year sales of 7% or 11.2% respectively when comparing current fiscal year sales to prior fiscal year sales.
  • New Jersey: There is a sales incentive plan for the LSRs.
  • New Mexico: LSRs are employed by the lottery’s online sales vendor.
  • North Carolina: LSRs can earn a quarterly commission if they meet or exceed their goal. They are eligible to earn annual commissions up to $4,500.
  • Oklahoma: LSRs are employed by the lottery’s vendor (Scientific Games), which does offer the reps an incentive plan.
  • Pennsylvania: The lottery has offered its incentive plan for 13 years. LSRs earn incentives for meeting recruitment and sales goals. If met, a LSR can achieve an additional $2,500.
  • Texas: The lottery operator (IGT) implements quarterly incentive plans based on scratch ticket and draw game sales as well as recruitment of new retailers. Details are proprietary.
  • Virginia: The primary objectives of the Sales Incentive Plan (SIP) are:
    •  Focus the attention of Sales employees on the achievement of the Virginia Lottery’s financial objectives;
      – Provide eligible Sales employees with a stake in the Virginia Lottery’s overall financial success;
      – Link Sales employees’ pay directly to the successful achievement of their individual performance objectives (both financial and non-financial;
      – Promote and encourage teamwork among all Virginia Lottery employees; and
      – Deliver competitive total cash compensation when the Virginia Lottery’s performance results warrant it.
  • Washington: Incentives paid quarterly based on meeting goals set at start of the fiscal year. Meeting sales goals is a component.
  • West Virginia: LSRs are employed by IGT.

In Canada, one lottery reported a LSR incentive plan.

  • Atlantic Lottery: There were two incentive programs run in fiscal 2018. Each rewarded Account Managers for achieving “sales stretch” targets for the Scratch’n Win category.
  • B.C. Lottery Corp. offers small incentives in the form of gift cards to its Territory Managers and Inside Sales (Telephone Sales Rep) programs throughout the year.
  • Loto-Québec’s sales representatives are independent contractors. Their retribution is solely based on their sales results on different products throughout the year.
  • (Note: Some lotteries, such as Arkansas, are statutorily prohibited from receiving incentives or bonuses. It is not allowed by law in Maine.)