When calculating the percent of ineligible activity for a business that sells lottery tickets, do I use the total money collected for the lottery tickets or do I use the part that is the business's commission as the gross revenue?

Likewise, if the business sells money orders, do I use the total amount collected for the money orders or do I use just the fee for the money order?

I use the amount of revenue they earn from the activity.

The term "gross revenue" in the CTR exemption regulations is intended to encompass the amount of money that a business actually EARNS from a particular activity, rather than the SALES VOLUME of such activity conducted by the business.

Use the part that is the business' commission as gross revenue.

Thanks for your help. I need just one more thing. I may need to prove to an examiner why I calculated it this way. Can you direct me to where this is in the law?

Thanks, again, for your help.

Does the revenue amount from ineligible activities need to be verified with the business each year? We have several convenience stores that sell lottery tickets and the commission makes up less than 1% of their gross revenue. Would we need to verify the lottery revenue each year when we review their exemption? They have a long way to go before they would make 50% of their revenue. Sometimes it isnt easy to get this type of information from the business.