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 a Louisiana Lottery Retailer Application for a Bond.
How Do I Get a Lottery Retailer Agents License?
In Louisiana, the Louisiana Lottery Corporation (LLC) issues lottery licenses, though you will need to interact with other state offices to complete the application package.
What Does the Licensing Process Involve?
The application package includes five different forms:
- Lottery Retailer Application
- The Louisiana Lottery Corporation Contract
- Electronic Funds Transfer Authorization
- Billing Option Authorization Form
- Retailer Information Form
You’ll need to complete and submit all five forms, along with payment of the $35 fee and clearance letters from the Department of Revenue and Taxation, the Louisiana Workforce Commission, and the Louisiana Secretary of State.
Upon receipt of your completed application, the Commission will review it and conduct a marketing evaluation, background check, credit check, and a site inspection for ADA compliance. When your license application is approved, you will be assigned a Sales Representative who will coordinate the installation of lottery equipment and schedule you and any employees for the mandatory lottery retailer training. You will also be required to furnish LLC with a surety bond or other form of financial guarantee in an amount established by LLC.
Why Is a Lottery Bond Required?
Lottery retailers have certain fiduciary responsibilities and other contractual obligations they must uphold. A Louisiana lottery bond legally obligates them to do just that or pay for the financial harm done to LLC or the public by their noncompliance.
How Does a Lottery Bond Work?
If the lottery retailer (known as the bond’s “principal”) commits an unlawful or unethical act that violates LLC regulations or state laws, causing financial harm to LLC (the bond’s “obligee”) or the public, the injured party can file a claim against the bond and be compensated up to the required bond amount. Common violations include not remitting lottery sales proceeds or taxes due to the state.
The third party to the lottery bond agreement is the bond’s guarantor (referred to as the “surety”). The terms of the surety bond agreement legally obligate the principal to pay all valid claims and indemnify the principal and the surety against any liability for them.
But having guaranteed the bond, the surety normally pays all legitimate claims initially; to be reimbursed after the fact by the principal. Not repaying the surety as agreed upon can result in the surety taking legal action to recover the funds from the principal.
What Does a Lottery Bond Cost?
Louisiana lottery bonds are sold for an annual premium that is a small percentage of the required bond amount, that percentage (the premium rate) being determined through an underwriting process. The primary underwriting concern is the risk the surety might not be reimbursed for claims paid on behalf of the principal.
The underwriters will take a close look at the principal’s personal credit score as a risk indicator. Someone with a high credit score is viewed as a low risk to the surety.
Lottery bonds typically cost in the 1-2% range for applicants with good credit. Applicants with lower credit scores may pay a higher premium rate.
Get a Quote
Our surety bond professionals will get you the lottery retailer bond application in Louisianna that you need at a competitive rate.