Learn how to become licensed as a Missouri lottery agent, 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?
To obtain a license to operate as a lottery retailer in Missouri, you must obtain a license from the Missouri Lottery (MOLottery). Learn more about the role of lottery brokers and why lottery bonds are required.
What Are the Steps in the Licensing Process?
The Missouri lottery retailer license application packet can be downloaded along with the instructions for completing it. You will need to complete and sign the forms included in the packet. Your signature authorizes MOLottery to conduct background checks, including a criminal records check and credit check.
You will also need to purchase a $30,000 Missouri lottery bond and submit it to MOLottery with your completed application packet.
Why Is a Missouri Lottery Bond Required?
A Missouri lottery bond provides financial protection for MOLottery (the “obligee” requiring the bond) and the public by requiring the lottery retailer (the bond’s “principal”) to:
- operate in compliance with applicable state laws and lottery regulations, and
- compensate any party financially harmed by an act of noncompliance.
Claims against a Missouri lottery bond may result from misappropriating lottery funds or failing to remit lottery ticket sales proceeds to the state.
How Do Virginia Lottery Bonds Work?
There is a third party to the legally binding surety bond agreement in addition to the obligee and the principal�the bond�s guarantor, known as the �surety.� The principal bears full legal responsibility for paying valid claims, but the surety guarantees their payment.
The surety also is responsible for investigating claims to make sure they�re valid and may, in fact, try to negotiate a settlement. If no settlement is possible, the normal practice is for the surety to pay a valid claim initially to ensure a swift resolution of the matter.
This payment is essentially a loan to the principal, as the surety has no legal responsibility for paying claims. The principal�s obligation to pay claims thus becomes an obligation to repay the surety. Not being repaid gives the surety the right to take legal action against the principal to recover the claim amount.
How Much Does a Lottery Bond Cost?
Missouri lottery bonds are subject to underwriting. The results of the underwriters� assessment of the risk to the surety will determine what percentage of the $30,000 bond amount the principal will pay as the annual premium for the bond.
The main risk to the surety is the risk of not being repaid for claims paid on behalf of the principal. The best measure of that risk is the principal�s personal credit score. A high credit score is a sign of fiscal responsibility, which means the risk to the surety is low, and the principal�s premium rate will also be low. A lower credit score will result in a higher premium rate because of the higher risk to the surety.
Request a convenient online quote today, or call and speak with one of our surety bond experts who can answer your questions about Missouri lottery bonds.