Maryland Lottery Agency Bond Overview
- Purpose: To hold lottery retailers accountable for following laws and regulations
- Who Needs It: Lottery ticket sellers in Maryland
- Regulating Body: The Maryland State Lottery Agency
- Bond Amount: $100–$150,000
- Premium Price: 1% of the coverage amount
What Is a Maryland Lottery Agency Bond?
A Maryland lottery agency bond, also known as a lottery retailer bond, is required by the Maryland State Lottery Agency. Anyone wanting to offer video lottery games or sell lottery tickets must be licensed and bonded.
Lottery bonds also protect consumers by ensuring that retailers follow industry regulations. This helps keep the lottery safe and fair for everyone.
Bond Coverage Requirements for Maryland Lottery Retailers
The State Lottery Agency will determine the bond amount you need based on how many lottery tickets you sold in Maryland last year. If you’re a new licensee, it will be based on estimated numbers.
The required amounts of these bonds vary based on the amount of lottery tickets sold last year in the lottery retailer’s district. Your exact bond cost is subject to underwriting consideration, including a review of your credit report.
How Much Do Lottery Retailer Bonds Cost in Maryland?
Maryland lottery agency bond premiums vary based on coverage amount and financial factors like credit score. With good personal credit, premiums typically range from 1-5%. Get your free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Maryland Lottery Agency Bond Work?
When you purchase your lottery agent bond, you’ll enter a three-party agreement.
- Principal: The lottery agency owner filing the bond
- Obligee: The Maryland State Lottery Agency requiring the bond
- Surety: The surety provider issuing the bond
This bond makes sure that you will pay all taxes and fees owed to the state. As the bond principal, if you fail to follow state laws, harmed parties can file a claim on the bond. The surety will investigate and pay for valid claims. Then, you must repay the surety.
How Do I Get a Lottery Agency Bond in Maryland?
To get your Maryland lottery sales bond, complete the following easy steps:
- Determine coverage amount
- Apply for a quote
- Get your quote within one business day
- Purchase your bond
- File your bond with the state
How Fast Can I Get My Bond?
We offer two-day, one-day or overnight shipping options that cost $20–$40, respectively. If you apply during business hours Monday through Friday, you can often get a same-day quote.
How Do I File My Bond?
You’ll sign and mail the original bond form to this address:
The Maryland State Lottery Agency
C/O Agent Unit
Montgomery Park Business Center
1800 Washington Boulevard – 330
Baltimore, Maryland 21230
Can I Get Bonded With Bad Credit?
You may still be able to get a lottery bond with a low personal credit score. However, bad credit will impact your premium rate and can lower your chances of approval.
How Do I Renew My Lottery Agency Bond?
Simply pay your renewal invoice when prompted to extend your bond for another term. When you work with SuretyBonds.com, we’ll send you phone and email reminders starting 90 days out.
You can pay your renewal invoice any time. Then, we’ll provide a continuation certificate. File this with the SLA as proof that you still have active coverage.
How Do I Update My Bond Amount?
If your lottery ticket sales volume changes year over year, confirm your bond requirement with the SLA. Contact your surety provider if your bond coverage needs updated at renewal.
How to Get a Gaming Contractor License to Sell Lottery Tickets in Maryland
First, you’ll need to register with the Maryland State Department of Assessments and Taxation (SDAT).
Then, submit a written request to the MLGCA Regulatory Licensing and Background Investigations Division by emailing [email protected]. Include all the required information and documents.
They will follow up with next steps, including your exact surety bond requirement.
Requirements for Maryland Lottery Retailers
Lottery retailers are expected to meet these Gaming Contractor license regulations:
- Provide all required claim services and pay valid winners
- Not sell to any customers under 18 years of age
- Complete claim forms if a jackpot is won
- Avoid financial bankruptcy
- Maintain current and accurate records of sales and payouts related to lottery services for at least 3 years
- Not be in the sole business of selling lottery tickets
- Provide electrical service for all lottery equipment
- Give at least 30 days’ notice of intent to close the business, stop lottery services, move locations, or change ownership
