Lottery Bond

What is a Lottery Bond?

A lottery / lotto bond is a commercial surety bond which guarantees the correct use of lottery machines in accordance with industry and state regulations, as well as the correct sale of lottery tickets. In order to get a license, any facility which has a lottery machine is required to obtain such a bond.

Lottery bond cost, regulations and requirements vary according to state. Yet, as with every surety bond, a lotto bond is a three-party agreement with the following sides to it: the obligee (the party requesting the lottery bond; the government and consumers), the principal (the business which has to obtain the bond) and the surety company underwriting the lottery bond.

The surety company’s role in this agreement is to serve as a guarantor of the bonded principal. If for some reason the principal fails to pay taxes to the state’s lottery commission, tampers with the lottery machine or otherwise abuses the lottery system, a claim can be filed against them. In the case of a claim, the surety is there to back the principal and reimburse the obligee for financial losses. In this way, lottery bonds work like a line of credit. Usually, it is best for all sides to avoid claims on a bond. Nevertheless, if a claim is made and the surety has to step in, the principal is then required to indemnify the surety for any payments it has made.

Continue reading for more information on lottery bonds or apply online from the table below.

Lottery Bond Cost

The premium you have to pay for your lottеry bond is a fraction of the total bond amount required by your state’s Lottery Commission or Corporation. Your premium is determined by the surety company depending on the total amount of the lottery bond in the state and your personal credit score.

Typically, lottery bonds are low risk and relatively small when compared to other license bonds. Most lottery bonds range between $5,000 and $15,000. If you have good credit, you will be eligible for standard market rates, which range between 1%-4% of the total amount. In other words, for a $10,000 lottery bond you will have to pay somewhere between $100 and $400.

By improving your credit score over time, you will be eligible to receive better and lower rates on your lotto bonds, whenever you have to renew your license.

Another way to receive a better rate is to carefully pick your surety company. Bryant Surety Bonds has access to exclusive rates via its network of highly professional A rated and T-listed surety companies. Working with us, you are sure to get the best rate on your lottery bond in your state.

To learn more about how surety bond cost is calculated, make sure to visit our surety bond cost page.

Bad Credit Lottery Bond Program

Our bad credit surety bond program is devised specifically for new companies with no credit or for those with poor credit, bankruptcies and tax liens. This program allows those who typically cannot be bonded, to get bonded.

Due to the higher risk involved, bad credit applicants have slightly higher rates, ranging between 5%-15% of the total amount. The exact amount of your lottery bond under our bad credit program will vary depending on your specific case but you are still guaranteed to get the best rate.

How to Get Your Lottery Bond

Obtaining a lottery bond is simple and straightforward. All you need to do is apply online. Within minutes you will receive a personal quote, free of charge. Then you only need to follow the steps of the application process and you will have your underwritten lottery bond very soon.

If you have any questions or doubts whatsoever, just give us a call at 866.450.3412. Our surety bond experts will be there to help you and respond to all your questions.

Popular Lottery Bonds by State

Connecticut

• Bond: Connecticut State Lottery Sales Agent Payment Bond
• Obligee: Connecticut Lottery Corporation
• Form:
• Amount: Set by Obligee

Florida

• Bond: Florida Lottery Bond Form
• Obligee: Florida Lottery250 Marriott Drive Tallahassee, FL 32399-4001
• Form:
• Amount: Set by Obligee

Georgia

• Bond: Georgia Lottery Corporation Retailer Contract Payment and Performance Bond
• Obligee: Georgia Lottery Corporation250 Williams Street, INFORUM Suite 3000, Atlanta, GA 30303
• Form: RV-F1302001
• Amount: Set by Obligee

Maryland

• Bond: Maryland Surety Bond
• Obligee: Maryland State Lottery Agency: Agent Bonds UnitMontgomery Park Business Center 1800 Washington Boulevard Suite 330 Baltimore, Maryland 21230
• Form:
• Amount: Set by Obligee

Missouri

• Bond: Lottery Bond
• Obligee: State of Missouri: Director of Finance
• Form:
• Amount: Set by Obligee

North Carolina

• Bond: Lottery Bond
• Obligee: North Carolina Education Lottery
• Form:
• Amount: Set by Obligee

Nevada

• Bond: Surety Bond For Gaming Establishment
• Obligee: Nevada Gaming Commission: Tax and License Division1919 E College Pkwy 1800 Washington Boulevard Carson City, Nevada 89706
• Form:
• Amount: Set by Obligee

Ohio

• Bond: Lottery Sales Retailer Bond
• Obligee: The Ohio Lottery Commission
• Form:
• Amount: Set by Obligee

Oregon

• Bond: Surety Bond of Lottery Commission
• Obligee: Oregon State Lottery Commission
• Form:
• Amount: Set by Obligee

Pennsylvania

• Bond: Lottery Surety Bond
• Obligee: Pennsylvania Department of Revenue: PA Lottery2850 Turnpike Ind. DR. Park Middletown, PA 17057
• Form:
• Amount: Set by Obligee

Tennessee

• Bond: Tennessee Education Lottery Corporation Lottery Retailer Surety Bond
• Obligee: TN Education Lottery Corporation
• Form:
• Amount: Set by Obligee

Texas

• Bond: Continuous Bond for Bingo Prize Fees
• Obligee: Charitable Bongo Operations Division, Texas Lottery CommissionPO Box 16630 Austin, TX 78761-6630
• Form: TLC Pub 8014
• Amount: Set by Obligee

Virginia

• Bond: Lottery Retailer Surety Bond
• Obligee: State Lottery Department, Commonwealth of Virginia
• Form:
• Amount: Set by Obligee

About us:

Bryant Surety Bonds

Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.