Tennessee Lottery Retailer Bond Overview
- Purpose: To ensure retailers handle lottery funds properly and operate ethically
- Who Needs It: Lottery retailers who don’t meet Tennessee’s minimum credit requirements
- Regulating Body: The Tennessee Education Lottery Corporation
- Bond Amount: $1,000–$100,000
- Minimum Price: $100, or 1% of the bond amount
What Is a Tennessee Lottery Retailer Bond?
A Tennessee lottery retailer bond ensures retailers follow state law and pay all applicable taxes. The Tennessee Education Lottery Corporation (TEL) may require you to file this bond if you don’t meet the financial qualifications for a license.
Bond Coverage Requirements
Not all Tennessee lottery retailers need to file a surety bond. You only need to provide financial security if you don’t meet the minimum credit requirements.
The TEL will review each owner and shareholder’s financial qualifications and payment history. If even one partner doesn’t meet the credit standard, you may need to file a bond to cover the business.
In that case, the TEL will determine your bond amount, which can range from $1,000 to $100,000. They’ll consider factors such as your creditworthiness, payment history and expected sales volume.
How Much Do Lottery Retailer Bonds Cost?
Tennessee lottery retailer bonds start at just $100. Qualified applicants typically pay just 1–3% of the total bond amount.
We'll provide your exact price after doing a soft credit review. Apply below for a free quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
Like all surety bonds, a Tennessee lottery retailer bond legally binds these three parties.
| Bond Party | Description |
|---|---|
| Principal | The lottery retailer purchasing the bond |
| Obligee | The Tennessee Education Lottery Corporation requiring the bond |
| Surety | The issuing surety provider |
This bond holds you financially accountable for following Tennessee Code §§ 4-51-115 through 4-51-130. The following acts are prohibited:
- Selling tickets outside approved locations
- Misusing lottery funds
- Selling tickets to minors
- Altering or manipulating the lottery terminals or equipment
These acts may lead to bond claims. While the surety will pay out valid claims up to your full bond amount, you ultimately must refund the surety.
How Do I Get a Lottery Retailer Bond in Tennessee?
You can apply for a free quote online 24/7 using the form on this page. Once we receive your information, we’ll send you a free quote within one business day.
How Fast Can I Get My Bond?
We’ll email you the digital bond form right after payment. Be sure to file the document with the TEL.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will likely increase your price. Apply for a free quote today to see how credit might impact your cost.
How Do I Renew My Lottery Retailer Bond?
Tennessee lottery retailer bonds expire annually. We’ll send you email and text reminders starting 90 days before expiration. To renew, simply pay the attached invoice.
How Do I Update My Bond Form?
Since your bond is a formal contract, only your surety company can make changes to it. Email [email protected] with the new information, and we’ll take care of any updates.
How to Become a Lottery Retailer in Tennessee
If you want to sell lottery tickets in your business, you’ll need a retailer license. Follow these three steps to apply:
- If you’re not already an existing business, register your company with the state.
- Complete the retailer application, including the criminal background check and electronic funds transfer authorization. The fee is $95 per location.
- Purchase a surety bond (if needed).
- Print the application and get it notarized before mailing it to the following address:
Tennessee Education Lottery Corporation
P.O. Box 291869
Nashville, TN 37229-9715
Once approved, the TEL will call you with the next steps, including machine installation and training.
Do I Need to Purchase Any Equipment Before Applying?
No, the TEL will install the necessary equipment for free. This usually includes a touch-screen terminal and a satellite dish. You’ll only need to provide the following before installation:
- A designated space for the terminal
- Roof access for the satellite installers
- A separate quadplex electrical outlet for the terminal
You can use this guide to help you organize your space.
Although installation is free, you’ll need to pay a minimum $15 weekly service fee to cover maintenance and operating costs.
What Businesses Can’t Sell Lottery Tickets?
Under state law, your business must have a primary purpose other than selling lottery tickets. Only pawnshops and cash advance outlets are ineligible for a retailer license.
