Lottery sales are part of what makes many Michigan gas stations, party stores and markets work. They bring customers through the door, and for a buyer they are part of the value of the business. But selling lottery products takes a license, and that license does not always travel with the store when it is sold. This article covers the basics owners and buyers should know.
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In this article
Who needs a lottery retailer license
A business that sells Michigan Lottery products has to be an approved retailer of the Michigan Lottery. That approval is separate from a liquor license: liquor licensing runs through the Michigan Liquor Control Commission, and lottery retailer approval runs through the Michigan Lottery. A store may need both, and each has its own application, its own rules and its own timing.
What to expect from the application
In general, expect the Lottery to ask about the business, who owns it, the location, and the owners' background and financial responsibility. The exact forms and requirements can change, so check the Lottery's current process before you start rather than relying on an old checklist.
Accuracy matters. Inconsistent information about ownership, or an application that does not match what is filed with the state for the company, can slow things down.
What happens when the store is sold
A retailer approval is tied to the retailer. When a store is bought, the new owner usually needs to apply in its own name, and it should not assume it can keep selling lottery products the day after closing on the seller's approval.
That is why lottery licensing belongs in the purchase agreement and the closing timeline, next to the liquor license. Our lottery licensing page and our page on gas stations and markets explain how we handle those pieces together.
A short checklist for owners and buyers
Ask the seller for current license information and for lottery sales history, so you know what the business actually relies on
Make lottery approval a condition of closing in the purchase agreement, with a clear answer on what happens if it is delayed
Start the lottery application at the same time as the liquor license application, not after
Make sure ownership information is identical across every filing
After closing, report future ownership changes and keep your records in order
Frequently asked questions
Does the lottery license transfer when I buy a store?
Usually the new owner has to apply for its own approval. Because requirements can change, confirm the current process with the Michigan Lottery and plan the application into your closing timeline.
Is lottery licensing part of my liquor license?
No. They are separate. The Michigan Liquor Control Commission handles liquor licenses and the Michigan Lottery handles lottery retailers. A store that sells both needs to deal with both.
Do I need a lawyer to apply?
Not always. But when lottery licensing is part of buying or selling a business, a lawyer can make sure the application, the purchase agreement and the closing date line up.
Buying or selling a store that sells lottery products? Schedule a consultation or call 248-948-1500.
