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How to Start a Pull Tab Business: A Complete Guide

How to Start a Pull Tab Business: A Complete Guide

Are you thinking about starting a pull tab business? Pull tabs, also known as “instant bingo,” are small paper tickets with perforated tabs that, when pulled, reveal symbols or numbers that could lead to a prize. They’re a popular form of entertainment and fundraising in many communities.

Starting a pull-tab business can be a great opportunity to become your own boss and make a profit while bringing joy to your customers. However, like any business, it requires careful planning, research, and execution to succeed.

In this blog post, we’ll provide a step-by-step guide on how to start a pull tab business, including the legal requirements, equipment needed, and marketing strategies. Whether you’re starting from scratch or looking to expand an existing business, this guide will provide you with valuable insights and tips to help you succeed.

How to Start a Pull Tab Business?

Pull tabs, also known as instant bingo tickets or peel-off lottery tickets, are a popular form of gambling in many states across the US. Running a pull tab business can be a profitable venture, but it requires careful planning and execution. In this guide, we’ll take you through the steps involved in starting a successful pull tab business.

Step 1: Research Your Market

Before starting any business, it’s important to research the market you’ll be operating in. This will help you determine whether there’s enough demand for your product, identify your target customers, and understand the competition.

Look into the laws and regulations in your state regarding pull tabs. You’ll need to obtain the necessary licenses and permits to operate a pull tab business legally. It’s also important to research your competition to determine what they’re doing right and what you can improve on.

Step 2: Create a Business Plan

Once you’ve done your research, it’s time to create a business plan. This plan should include a description of your business, target market, marketing and sales strategies, financial projections, and any other relevant information.

Your business plan should also outline how you’ll finance your pull tab business. You may need to secure a loan, invest your own money, or seek out investors.

Step 3: Obtain Licenses and Permits

As mentioned earlier, you’ll need to obtain the necessary licenses and permits to operate a pull tab business. This will likely include a gaming license and a business license. The exact requirements will vary depending on your state and local laws, so be sure to research this thoroughly.

Step 4: Find a Location

Once you have all the necessary licenses and permits, you’ll need to find a location for your pull tab business. Look for a space that’s easily accessible, has ample parking, and is in a high-traffic area.

You may also need to outfit your space with furniture, gaming equipment, and other supplies. Make sure you have a solid plan for how you’ll set up your business before you sign a lease or purchase a property.

Step 5: Purchase Your Pull Tabs

The main product you’ll be selling in your pull tab business is, of course, pull tabs. You’ll need to find a supplier that offers a wide variety of pull tabs at competitive prices.

Consider factors such as the quality of the pull tabs, shipping times and costs, and the minimum order requirements before choosing a supplier. You may also want to order samples of pull tabs from a few different suppliers to test them out before making a larger order.

Step 6: Hire Staff and Train Them

Depending on the size of your business, you may need to hire staff to help run things. Look for employees who are friendly, reliable, and have experience in customer service.

Once you’ve hired your staff, be sure to train them thoroughly on how to operate the gaming equipment, handle cash and payments, and provide good customer service.

Step 7: Market Your Business

Marketing is crucial to the success of any business, and a pull tab business is no exception. Develop a marketing plan that includes tactics such as social media advertising, email marketing, and promotions.

Consider offering special deals or discounts to attract new customers, and make sure your business is easily accessible online with a website or social media presence.

Starting a pull tab business can be a profitable and rewarding venture if done correctly. By following these steps and putting in the necessary effort and dedication, you can create a successful business that provides entertainment and enjoyment for your customers.

Benefits of starting a pull tab business

Here are some potential benefits of starting a pull tab business:

  1. Low start-up costs: Compared to many other types of businesses, starting a pull tab business can require a relatively low initial investment. This makes it a potentially attractive option for entrepreneurs who don’t have a lot of capital to work with.
  2. High-profit margins: Pull tabs are typically sold for a higher price than they cost to produce, meaning that businesses can potentially earn a healthy profit on each sale. Additionally, because pull tabs are small and portable, they can be sold in a variety of settings (such as bars, restaurants, or convenience stores), making it possible to reach a wide customer base.
  3. Repeat business: Because pull tabs offer the potential for instant prizes, many customers find them fun and engaging. This can lead to repeat business as people come back to buy more tickets in hopes of winning big.
  4. Minimal maintenance: Once a pull tab dispenser is set up, it requires relatively little ongoing maintenance. This means that business owners can focus on other tasks (such as marketing, inventory management, or customer service) without needing to constantly monitor their pull tab machines.
  5. Flexibility: Pull tabs can be customized to appeal to different audiences, allowing business owners to cater to specific customer groups. For example, a bar that attracts a younger crowd might choose to offer pull tabs with pop culture themes, while a convenience store located near a retirement community might stock pull tabs with larger print for easy reading.

Overall, while starting any business comes with risks and challenges, a pull tab business can offer several potential benefits for those willing to put in the work. By carefully planning out the logistics of your operation and finding ways to set your business apart from competitors, you could potentially build a successful and profitable pull tab business.

Drawbacks of starting a pull tab business

While there are several benefits to starting a pull tab business, there are also some drawbacks to consider before taking the plunge. Here are a few potential drawbacks to keep in mind:

  1. Licensing and regulations: Starting a pull tab business requires obtaining the necessary licenses and permits, which can vary by state and locality. In addition, there may be regulations related to the operation of the business, such as restrictions on the hours of operation or the types of prizes that can be offered.
  2. Competition: Depending on the location of the business, there may be competition from other pull-tab businesses or from other forms of gambling, such as casinos or online gambling sites. This can make it difficult to attract customers and generate revenue.
  3. Cash handling and security: Pull tab businesses typically handle large amounts of cash, which can make them a target for theft or other security issues. It’s important to have effective security measures in place to protect the business and its employees.
  4. Limited revenue streams: While pull tabs can generate significant revenue, they may not provide the same level of financial stability as other types of businesses. For example, if there are changes in regulations or if there is a decrease in demand for pull tabs, the business may struggle to maintain its revenue stream.
  5. Stigma: While pull tabs are legal and regulated, there may still be a stigma attached to gambling in some communities. This can make it difficult to build a positive reputation and attract customers.

It’s important to carefully consider these drawbacks and weigh them against the potential benefits before starting a pull tab business.


In conclusion, starting a pull tab business can be a lucrative opportunity for entrepreneurs who are willing to put in the time and effort to make it successful. However, it’s important to carefully consider the risks and challenges associated with the industry before taking the plunge. By doing your research, creating a solid business plan, and adhering to regulations and best practices, you can increase your chances of success and enjoy the many benefits of owning a pull tab business, such as providing entertainment for your customers and supporting local charities.