Impact of lottery minimal to retailers
While the Tennessee lottery took in more than $863 million its first year, local retailers say it is no cash cow for them, but remains necessary to compete.
“It’s not turned into a revenue producer, but we expected it wouldn’t,” said Terry Boyd, owner of Korner Market and Village Market. “But, we knew we had to offer the lottery to compete with other convenience stores because we knew customers would go elsewhere if we didn’t. It seems our customers do want the lottery.”
Boyd’s comments come on the heels of the year-end report of the lottery offered by director Rebecca Paul which revealed $246 million went to fund scholarships during the lottery’s first year. About $461 million went to pay winnings.
Just prior to the lottery beginning here last January, Boyd, in an interview with the Southern Standard, said he felt the lottery would be a staple like Sundrop to local residents when it came to shopping at convenience stores. Boyd further added he felt stores would need to carry lottery to compete.
Nothing has changed during the year, Boyd said, as he stands by his prediction, even noting the drop off in lottery sales was expected.
“It tapered off after the first few months,” Boyd said, noting sales are still good but not what they were when the lottery was new. “At first we were overwhelmed, trying to wait on customers and do the tickets but after a while it became easier.”
One upside, Boyd said, is that the revenues, which are a six and a half percent slice the retailer gets from the sales, allowed him to hire an extra employee. However, Boyd noted the retailer cut is far from a cash cow, noting the lottery even demands a $15 service charge from retailers.