Beth Good
Beth Good
Wanblee Mart

How to Become a Scratch Ticket & Lotto Retailer

Over 600 businesses currently contribute to the state’s economic vitality as Lottery retailers. The Lottery recognizes ticket retailers as important partners and pays retailers a 5 percent commission on the sale of each lottery ticket, plus incentive commissions.

Scratch ticket retailers have earned more than $19 million in commissions from selling tickets, and Lotto ticket retailers have earned nearly $17 million in commissions.

Scratch Ticket & Lotto Retailer Application Checklist

The following checklist will help you complete the application process. The forms must be printed, completed, signed, and notarized in some cases.

Once you have completed the forms, please send all of the forms and your application fee to the South Dakota Lottery, PO Box 7107, Pierre, SD  57501.  Call the Lottery at (605) 773-5770 if you have any questions or want more information about becoming a Lottery retailer.

  1. Complete the Application Form
    Application Form PDF / Application Form Instruction PDF
  2. Complete Individual History Forms for each individual listed in Section 7 of the Application Form Individual History Form Instructions PDF /   Individual History Form PDF
  3. Complete Investigation Authorization Forms for each individual listed in Section 7 of the Application Form
    Investigation Authorization Form Instructions PDF /  Investigation Authorization Form PDF
  4. Complete the Authorization for Electronic Funds Transfer (EFT) Form
    EFT Form Instructions PDF /  EFT Form PDF
  5. Complete the W-9 Taxpayer Identification Number (TIN) Verification Form
    W-9 Form PDF
  6. Application Fee
    An application fee of $50 is required and must accompany your application documents. Please make checks payable to the South Dakota Lottery.

Note:  All Lottery ticket retailers licensed after July 4, 2010, are required to sell both the instant tickets and the on-line "Lotto" tickets with the exception of retailers on Indian Reservations which are prohibited from selling the on-line games.

New:  The fee for an instant ticket or instant and lotto ticket license is $1,200. All new licensees are required to pay an annual renewal fee of $150 which is waived in the first year.

Retailers licensed after July 4, 2010, including ownership changes and tribal locations, will be charged $12.93 per week for communications costs.

As an incentive to the new retailers licensed after July 4, 2010, those retailers who sell $5,000 or more in instant tickets in a quarter will be credited $168.09 (13 weeks of communications costs) at the end of that quarter. New retailers who are part of a chain in which the chain’s per store average is $6,000 in instant ticket sales for a quarter will be credited the communications costs for that quarter. A chain store is defined as two or more stores under the same ownership or entity.

Pursuant to SDCL §42-7A-50, information provided in license applications is considered confidential information on file with the South Dakota Lottery except:

  • Business name, business address, and business phone number; and
  • Name of any video lottery operator including, if the video lottery operator is a partnership, the name of any partner and, if the video lottery operator is an association or corporation, the name of any director, any officer, and any stockholder who owns five percent or more of the stock in the association or a parent or subsidiary corporation.