How much does an Ohio lottery bond cost?
To get an Ohio lottery bond you’ll need to pay a rate– or ‘premium’– which is a fraction of the full amount of the bond.
The amount of the Ohio lottery bond, as required by the Ohio Lottery Commission, is $15,000. The cost of your bond will be a small percentage of that total amount, and can be as little as $150.
Exactly how much your cost will cost is determined by the surety bond company who issues you your bond. The bond company decides what rate to offer you on the basis of your financial stability. This mostly includes your personal credit score, but also your financial statements, personal liquidity, assets, and your work history and experience.
A high-credit-score applicant, one with a score of 700 FICO or above, can usually expect to get a rate on their bond that’s between 1-3% of the total bond amount.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Ohio Lottery Bond||$15,000||$112.5-$225||$150-$375||$375-$750||$750-$1,500|
Options for applicants with bad credit
Applicants with low credit scores can also obtain the Ohio lottery bonds they need. The only difference between applicants with good credit, and those with a bad credit, are the rates they get.
Getting a bond with bad credit is possible thanks to our Bad Credit Program. By applying under this program, applicants with lower rates can obtain the bond they need to do business, and thus be able to improve their credit score over time.
Rates under this program are slightly higher due to the increased risk for sureties in issuing bonds to bad-credit applicants. The exact cost of a bond under this program is determined on an individual basis. Applicants who want to know more, or get an exact quote, should go to the Bad Credit Program page for more information.
What is the purpose of the Ohio lottery bond?
The Ohio lottery bond’s purpose is to guarantee to the public and the state that lottery retailers in Ohio will comply with state requirements and regulations that pertain to their business. These are outlined in Title 37, Chapter 3770 of the Ohio Revised Code.
The bond is meant to guarantee that lottery retailers will follow the rules. Should they violate the bond’s conditions or the state laws, the bond is there to offer protection and financial compensation to people who have been harmed by a retailer’s actions.
Typical violations of the bond on the side of retailers include non-payment of ticket sales to the state lottery, or other obligations owed to the state. They also include dishonesty or fraud towards customers.
Such violations may lead to a claim against the lottery bond of the Ohio lottery retailer. If a claim is made against a bond, the surety investigates the situation. If the claim is legitimate, the surety may repay the claimant up to the full amount of the bond ($15,000).
But, as part of the surety bond agreement, the retailer must then repay the surety for any money it extends as compensation to claimants.
How to get an Ohio lottery retailer license
Ohio lottery retailers need to get registered at the Ohio Lottery Commission in order to perform work as retailers legally. To get a license, applicants will need to fulfill the following list of requirements:
- Complete and submit the lottery retailer application
- Provide business and personal information
- Obtain a federal tax ID number
- Obtain a $15,000 Ohio lottery bond
- Pass a criminal background check
- Pass a training class with a lottery trainer at the local office of the Commission
- Pay a $25 licensing fee
The Ohio Lottery Commission’s website offers plenty of additional information and instructions regarding retailer licensing. Make sure to visit the Commission’s site, or contact the Commission directly for any questions regarding licensing.
Contact us at (866)-450-3412 if you want to know more about the bonding requirements for lottery retailers in Ohio, and the conditions of the lottery bond. We can also help you with your application and answer any questions you have regarding bonds. Don’t hesitate to call!