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Your Guide to Lottery Bonds
Why do I need a Lottery bond?
If you sell lottery tickets and/or use lottery equipment for commercial purposes most states will require you to obtain a surety bond. This type of surety bond is used to protect the state in the event that a lottery seller mishandles lottery funds or tampers with lottery equipment. Lottery bonds also protect consumers by ensuring the lottery seller adheres to industry regulations, ultimately keeping the lottery safe and fair for everyone.
State Specific Costs
Lottery bond costs and requirements vary greatly as the bond amounts and regulations are established on a state level for each license. Select your state below for more information about lottery bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
Pay a Low Rate for Your Lottery Bond
Our surety experts are brokers, meaning we’re able to shop your bond around with the industry’s top underwriters to make sure you get the lowest premium available. Your exact premium will vary depending on how much coverage your state requires combined with your credit score. Most states require lottery bonds in amounts ranging from $5,000 to $15,000. Having a credit score above 650, will qualify you for the standard market and so you can expect to pay 1-5% of the bond amount, which is typically between $100 and $750 Click here to find out your exact premium and apply for your free, no-obligation price quote.
Learn More About Lottery Bonds
So how do lottery bonds work, anyway? Every bond insurance contract that's issued functions as a legally binding contract that brings three parties together:
- The obligee is the government agency requiring an individual or business to be bonded
- The principal is the individual or business that gets bonded to guarantee some sort of performance
- The surety is the insurance company that underwrites the bond, thereby backing the principal's ability to meet the bond's terms
Although specific consequences vary by state, it remains constant that a claim can be filed on the bond if the lottery seller misappropriates any funds going to the lottery or tampers with lottery machinery. If the claim is validated, the surety will be responsible for paying reparation up to the full face value of the bond. The surety will then require the principal to reimburse it for any claims paid.
Bad Credit? We Can Help!
SuretyBonds.com has a history of helping individuals with low credit scores get bonded for the best rates available, and lottery bonds are no exception. Because we work with underwriters who specialize in nonstandard (bad credit) bonds, SuretyBonds.com can approve 99% of those who apply for lottery bond. This means we can still bond applicants who have credit scores below 650. Don't let your credit score keep you from getting the bond insurance you need!
Call 1 (800) 308-4358 to talk with a Surety Expert today.