Lottery sales agents in New York are seeking an increase in commission from the state of 1% this year, a push that's backed by a coalition of business groups who argue the move would aid convenience stores, grocery stores, bodegas, newsstands, taverns, restaurants, liquor stores and service stations that are also lottery retailers.

If approved, the commission increase from 6% to 7% would be the first since the lottery's inception in 1967.

"While lottery sales volume has steadily risen since then, the resulting additional commission income to lottery sales agents has been far outstripped by sharp growth in their operating expenses," business groups wrote in a letter to Gov. Kathy Hochul to be released later on Monday.

The New York Association of Convenience Stores is backing the push to increase the compensation rate, a trade group that represents the industry in Albany. The Food Industry Alliance, which represents grocery stores, as well as United Bodegas of America, the New York State Restaurant Association and the Empire State Restaurant & Tavern Association have also signed onto the effort.

The call to increase the compensation rate also comes as Hochul is set to release her budget proposal in the coming weeks. The plan is expected to pass by the end of March, the start of the state's fiscal year.

The groups poined to the rise in operating expenses for convenience stores across the country in the last decade, according to a national survey. Costs have risen by 43%, and in New York the pressure has been further driven by an increase in the state's minimum wage.

Lottery sales as sold by retailers, meanwhile, have increased by 13%.

"Normally, when costs rise, businesses have three choices – absorb it, raise their retail prices, or cut expenses," the business groups' letter states. "In this case, agents are forbidden from selling lottery tickets for more than face value, and the worst inflation in 30 years rules out absorbing higher costs. Without new revenue, that will force retailers to cut expenses, the largest segment of which is labor."

New York has greatly expanded gambling options since the lottery first began. In addition to scratch-off games, New York now allows four commercial casinos to operate. On Saturday, mobile sports betting was allowed for the first time in the state.