The Lott operate a soft gambling license across most states of Australia, and are listed on the ASX as ticker code TLC

They are a Franchise operation in each state except Queensland, where they are instead governed by a state based legislation, the Lotteries Act.

In all cases, the Franchise Code of Conduct applies.

When buying an existing lottery outlet, either stand alone or as part of a Newsagency or other authorised business, you will apply for a Transfer of License and pay a small Application cost & some mandatory training fees.  This is different to applying for a New License, where a much larger upfront application fee is charged.  You then pay a 1.1% Transfer/Franchise fee against sales for the first 52 weeks after a transfer, or first 3 years for a new license. Cashflowing from weekly sales is far easier than an upfront Franchise Fee.

From starting day, you are cashflow positive; taking in The Lott’s money, and paying out prizes from that money, before The Lott solidify your commission by sweeping your bank account for the net value.

The net value, as exampled below, compensate you for the prizes you have paid out, charges you the service fees for their provision of equipment and services, and then advises your earned commission with GST included through a RCTI (recipient created tax invoice)

There is more to it than this, but the above example gives you a quick idea of roughly how this works. All new license holders will have 2 sweeps per week, on Tuesday & Friday nights. Some long-standing agencies are only 1 sweep per week, but that will change with the transfer of license.

In the above example, The Lott reward agents for audit compliance by offering up to a 50% reduction in the Service Fee. At the time of writing, that means the 2% service fee can be reduced to 1%.

Instant Scratch-Its are treated the same as the above bi-weekly Lottery sales sweep, but at different commission & service fee rates.

The above is a very rough example only. Percentages, elements & values are subject to change at any time with notice from The Lott. Refer to the Settlement Report on the business you are purchasing for more accurate information.