Lottery Surety Bond
In most cases a lottery agent must provide proof of financial responsibility to their state specific lottery commission or lottery corporation, the most common form is to obtain a lottery surety bond or lottery bond in an amount determined by you local state entity.
A lottery surety bond or lottery bond may be with any company that complies with the bonding and surety laws of their specific state and the requirements established by rules of the commission or corporation pursuant to their own statutes.
A lottery sales agents license can be effective for one year or mulitiple years depending on the state agency. A lottery sales agent before the date of their license renewal date shall renew their lottery license and provide at that time evidence of their surety bond renewal (usually anywhere from 30-120 days).
A lottery surety bond or lottery bond, as applicable may be used to pay for the lottery sales agent’s failure to make prompt payments for lottery ticket sales, missing or stolen lottery tickets, or for damage to equipment or materials issued to the lottery sales agent, or to pay for expenses the commission incurs in connection with the lottery sales agent’s license. The manner in which lottery sales revenues are to be collected, including authorization for that specific state entity to impose penalties for failure by lottery sales agents to transfer revenues to the commission in a timely manner could result in claim activity which is something you never want to happen.
Always check with your local city, county or state government for exact lottery surety bond or lottery bond requirements.