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?
Ohio retailers who want to add lottery sales as another income stream for their business must first be licensed by the Ohio Lottery Commission. Learn more about the role of lottery brokers and why lottery bonds are required.
What Are the Steps in the Licensing Process?
Applying for an Ohio lottery retailer license requires the completion and submission of an online application. Your completed application will be forwarded to the Regional Lottery salesperson in your area. The salesperson will schedule an appointment to meet with you and explain the remaining steps in the licensing process, which include the background checks you consented to when you completed the application, as well as mandatory training, and a site inspection.
Upon approval of your license application, you must purchase a $15,000 Ohio lottery bond. (The amount could be higher for license renewals, depending on your lottery sales volume.)
Why Is an Ohio Lottery Bond Required?
In purchasing an Ohio lottery bond, you are guaranteeing the Ohio Lottery Commission (the bond�s �obligee�) that you (the bond�s �principal�) will operate as a lottery retailer in full compliance with the applicable regulations and rules contained in Title 37, Chapter 3770 of the Ohio Revised Code. You are also guaranteeing that you will pay any valid claims for monetary damages resulting from a Code violation, such as misappropriation of the proceeds from lottery sales. This combination of prevention and compensation provides financial protection for the state and the public.
How Do Ohio Lottery Bonds Work?
In addition to the obligee and the principal, there is a third party to the surety bond agreement�the bond�s guarantor (known as the �surety�).� While the principal bears the legal obligation to pay all valid claims, the surety has guaranteed that the principal will live up to that obligation. Therefore, the surety will pay a claim initially to ensure a swift resolution, but the principal must then reimburse the surety for the claim amount. Failure to do so can result in the surety suing the principal to recover the claim amount.
How Much Does a Lottery Bond Cost?
The annual premium for an Ohio lottery bond is based on two numbers: the $15,000 bond amount and the premium rate set by the surety on a case-by-case basis. The underwriting process considers the risk of the surety not being reimbursed or claims paid on behalf of the principal.
The primary factor in that assessment is the principal�s personal credit score. The assumption is that a creditworthy principal will continue to be responsible about paying debts, so the risk to the surety is low, and the premium rate will be low as well.� A lower credit score is a red flag for risk and will result in a higher premium rate. The average premium rate for an Ohio lottery bond is in the range of two to four or five percent.
Our surety bond professionals will get you the Ohio lottery bond you need at a competitive rate.