Learn how to become licensed as a lottery retailer, and speak with an Single Source Insurance agent today about purchasing the lottery bond you�ll need.
How Can I Get Licensed as a Lottery Retailer?
The additional income streams gained by becoming a Georgia Lottery retailer are well worth the time and effort it takes to obtain a lottery retailer license. The process begins with a phone call to the closest Georgia Lottery Corporation (GLC) District Sales Office. They’ll provide advice on how to meet the licensing requirements, and will serve as your liaison with GLC. Learn more about the role of lottery brokers and why lottery bonds are required.
What Are the Steps in the Licensing Process?
Once you have filled out the Georgia lottery retailer license application in its entirety and have all of the required supporting documents, submit them to the GLC District Sales Office. Your signature on the application authorizes GLC to conduct background checks into any criminal records and your credit history, and to determine whether you owe any taxes to the federal, state, or local tax authorities.
A key goal of GLC in conducting this investigation is to make sure you meet the financial responsibility standards for a Georgia lottery retailer. Some applicants will only be approved for a lottery retailer license if they provide a Financial Security Deposit (FSD) in the form of a surety bond, cash escrow, or letter of credit. GLC will notify you if you are subject to the FD requirement and will tell you the required bond amount. Most people in this situation choose to purchase a lottery bond.
Why Is a Georgia Lottery Bond Required?
GLC (the bond�s �obligee�) imposes the FSD requirement when a prospective lottery retailer (the bond�s �principal�) is believed to present a higher than usual financial risk. The purpose of the bond is to protect GLC and the public against financial losses stemming from the principal�s failure to comply with all applicable state laws and GLC regulations. Any such losses give the injured party the right to file a claim against the principal�s Georgia lottery bond.
How Do Georgia Lottery Bonds Work?
The third party to a Georgia lottery bond is the bond�s guarantor (known as the �surety�). The surety investigates each claim and determines whether it is valid. If it is, the principal is legally obligated to pay it. In practice, however, because the surety has guaranteed the payment of claims, the surety will pay the claim and then be reimbursed by the principal. The surety can take legal action against a principal who fails to repay that debt.
How Much Does a Lottery Bond Cost?
The annual premium for a Georgia lottery bond is the result of multiplying the required bond amount established by the obligee by the premium rate set by the surety. That premium rate will reflect the underwriters� assessment of the risk that the principal will fail to reimburse the surety for claims paid on the principal�s behalf.
The biggest factor in that assessment is the principal�s personal credit score. A high credit score indicates a low risk level and vice versa. A high credit score results in the lowest premium rate; someone with a low credit score will pay more because of the greater risk to the surety.
Our surety bond professionals will get you the Georgia lottery bond you need at a competitive rate.