North Carolina Lottery Bond Overview
- Purpose: To ensure lottery retailers are financially responsible and operate legally
- Who Needs It: Lottery retailers with insufficient credit
- Regulating Body: The North Carolina Education Lottery (NCEL)
- Bond Amount: $2,000+ per location, based on sales potential and credit-worthiness
- Minimum Price: 1% of the bond amount
What Is a North Carolina Lottery Bond?
North Carolina lottery bonds are a form of financial security to protect the lottery sales industry. The bond guarantees compensation for the state and consumers if a retailer breaks lottery rules and regulations, such as:
- Falsifying ticket sales records
- Not paying the state for lottery sales
- Selling tickets at unauthorized locations
- Charging ticket prices not established by NCEL
Who Needs a Lottery Bond?
No one can exclusively sell lottery tickets. This bond and license requirement is for existing retailers who want to offer lottery tickets or games as well.
The North Carolina Education Lottery (NCEL) requires some lottery retailers to file a surety bond or irrevocable letter of credit (ILOC).
- New Licensees: May need a bond if background checks identify questionable or unresolved credit issues — personal or business-related
- Current Licensees: May need a bond if you have three instances of not-sufficient funds within an 180-day period
Bond Coverage Requirements for Lottery Retailers
If you are required to file a surety bond or ILOC, your coverage amount will be determined by the NCEL. They’ll use your lottery sales potential plus creditworthiness to calculate the bond coverage.
You must file your financial security for at least 24 months. After that, if all your funds owed to the NCEL are paid, you will likely be released from the bond obligation.
How Much Do Lottery Bonds Cost in North Carolina?
North Carolina lottery retailer bonds typically cost 1–10% of the required bond amount. For example, a $5,000 lottery bond would start at $500 for highly-qualified applicants.
Get your free, personalized quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a North Carolina Lottery Bond Work?
A lottery bond creates a financial contract between three parties: the bond principal, obligee and surety.
| Bond Party | Description |
|---|---|
| 1) Principal | The lottery retailer filing the bond |
| 2) Obligee | The North Carolina Education Lottery |
| 3) Surety | The issuing surety provider |
If the state or customers file claims on the bond to recover financial losses, the surety will pay them up to the full bond amount. Then, the surety will seek repayment from the principal.
How Do I Get a Lottery Bond in North Carolina?
To get your North Carolina lottery bond, follow these steps:
- Submit a quote request form
- Receive your quote within one business day or less
- Sign documents and pay for the bond
You’ll get an email with the official bond form. Be sure to file this with the North Carolina Education Lottery.
How Fast Can I Get My Bond?
Typically, you can get a same-day quote Monday through Friday with SuretyBonds.com if you apply by 2 PM CST.
How Do I Renew My Bond?
You’ll need to maintain an active bond for at least two years. To renew, pay your renewal invoice when prompted. Then, the surety company will send you a continuation certificate. Submit this to the NCEL as proof that your bond is still active.
Can I Edit My Bond Form?
Typically, you cannot change a bond form once it is active. However, sometimes we can make small changes, like a business name or address, by issuing a bond rider. This is a document that “rides” on top of the bond form to amend it.
If you are a current customer, email [email protected] with your bond update request.
How to Become a Lottery Retailer in North Carolina
To become a licensed lottery retailer in North Carolina, you must first meet the requirements established in the North Education Lottery Policies and Procedures Manual.
- Be at least 21 years of age and registered to do business in North Carolina
- Have an existing retail business (cannot exclusively sell lottery tickets or entertainment devices)
- File and submit time state tax payments
- Pass investigations, including criminal background review, tax filing status review and financial credit review
- Open a dedicated bank account designated as “In Trust for the North Carolina Education Lottery” strictly used to deposit of net lottery proceeds
You can find more specific instructions in the Retailer Application Packet.
