How to Get a Lottery Agent License in Illinois
Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Illinois lottery bond needs.
How Do I Get a Lottery Agent License?
You can add another income stream for your business by becoming an Illinois lottery retailer. The licensing process is handled by the Illinois Lottery.
What Does the Licensing Process Involve?
Your first step is to request an application from the Illinois Lottery. That starts the ball rolling. When you have completed and submitted the application package, the State will begin a series of background checks into your financial history, any past-due taxes, any criminal history, and so on. You will receive status emails to update you on the status of your application.
At the appropriate point, you will be advised to complete a mandatory 3-hour online training session. When you have passed the course, a Lottery sales representative will be assigned to shepherd you through the rest of the process, including delivery and installation of lottery equipment.
Depending on the Lottery’s assessment of your financial responsibility, you may be required to purchase an Illinois lottery surety bond.
Why Is a Lottery Bond Required?
According to Illinois Lottery regulations, you may be required to provide the Lottery with a surety bond or some other form of security “to avoid any monetary loss to the State because of an agent’s activities in the sale of tickets.” The Lottery will tell you the required amount of the bond or other form of security deposit. Most lottery retailers will choose the surety bond option because you can purchase one without tying up a large amount of cash or credit.
How Does a Lottery Bond Work?
There are three parties to an Illinois lottery bond: The Illinois Lottery is the “obligee” requiring the bond, the lottery retailer is the “principal,” and the bond’s guarantor is the “surety.” The bond is the principal’s guarantee to comply with all Lottery regulations and compensate the State or other party that has experienced a monetary loss due to the principal’s violation of those regulations.
The principal bears the full legal obligation to pay all valid claims, but the surety has guaranteed that the principal will pay them. Consequently, the usual practice is for the surety to pay a claim initially, and be reimbursed by the principal.
What Does a Lottery Bond Cost?
Illinois lottery bonds go through an underwriting process to assess the risk the surety will be exposed to in paying claims on the principal’s behalf. This assessment is based largely on the principal’s personal credit score. A principal with a high credit score is assumed to be low-risk and will pay a premium rate of only one or two percent. A principal with poor credit presents a higher risk to the surety and will pay a higher premium rate.
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