How to Get a Lottery Agent License in Minnesota
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 Minnesota Lottery Retailer Bond.
How Do I Get a Lottery Retailer Agents License?
Becoming a Minnesota lottery retailer is the way many owners of retail establishments go when they want to gain additional income streams beyond the proceeds from selling their usual goods and services. The Minnesota State Lottery (MSL) issues licenses to applicants who meet the state’s requirements for lottery retailers.
What Does the Licensing Process Involve?
Complete the Minnesota lottery retailer application and return one copy to MSL. Complete and sign two copies of the Minnesota lottery retailer contract retailer contract and return both copies. Upon completion of the application review, if you are approved for licensure, MSL will execute both copies and return one of them to you.
In reviewing your application, MSL will look into your credit history and determine whether you meet the financial responsibility standards for licensure as a lottery retailer. If you qualify in all respects other than financial responsibility, the Lottery Director may require you post a bond, securities, or an irrevocable letter of credit “in an amount as the Director deems necessary, to protect the financial interests of the state.” Most retailers will choose the bonding option, which does not require them to tie up assets or credit.
Why Is a Lottery Bond Required?
Licensed lottery retailers have financial responsibilities to the state, such as remitting the proceeds from lottery sales and paying any required fees or fines. A Minnesota lottery bond protects MSL (the “obligee” requiring the bond) from financial harm caused by the unlawful or unethical actions of a licensed lottery retailer (the “principal” required to purchase the bond). The terms of a Minnesota lottery bond legally obligate the principal to pay all valid claims against the bond.
How Does a Lottery Bond Work?
The third party to a Minnesota lottery bond is the party guaranteeing the payment of claims (the “surety”). The legal obligation to pay claims rests entirely on the shoulders of the principal. But, as the guarantor, the surety normally will pay a legitimate claim on the principal’s behalf and be repaid later by the principal. Failing to repay the surety can result in the surety taking the principal to court to recover the funds.
What Does a Lottery Bond Cost?
Minnesota lottery bonds go through an underwriting process based largely on the principal’s personal credit score, which is a measure of the risk of the surety not being reimbursed by the principal. A high credit score shows that the principal has been financially responsible and is likely to honor the debt 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.
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Our surety bond professionals will get you the lottery retailer bond in Minnesota that you need at a competitive rate.