How to Get a Lottery Retailer License in Mississippi
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 Mississippi Lottery Retailer Bond.
How Do I Get a Lottery Retailer Agents License?
The Mississippi Lottery Corporation (MLC) licenses lottery retailers who meet the state’s eligibility requirements and financial responsibility standards.
What Does the Licensing Process Involve?
When you download the Mississippi lottery retailer application packet, you will find several forms in the packet, including the lottery retailer contract; all must be completed and returned to MLC. Your signed application allows MLC to conduct background and credit checks to ensure you are eligible and qualified for a Mississippi lottery retailer license.
When you have completed all the forms in the packet, return them, along with a surety bond in the amount of $8,000 per location and payment of the $80 application fee.
Why Is a Lottery Bond Required?
A lottery bond provides financial protection for the state of Mississippi, represented by MLC, and the public in two ways:
- It requires the lottery dealer who purchased it (known as the bond’ “principal”) to operate in compliance with Mississippi’s lottery statutes and the terms of the lottery retailer contract.
- It legally obligates the principal to compensate MLC (the “obligee” requiring the bond) for monetary losses caused by the principal’s noncompliance.
The most common violation by lottery retailers is not remitting lottery sales proceeds to the state as required.
How Does a Lottery Bond Work?
There is a third party to the surety bond contract—the company guaranteeing the principal’s payment of valid claims. The terms of the surety bond agreement legally obligate the principal to pay all valid claims filed by the obligee or other party financially harmed by the principal’s unlawful actions. It’s up to the surety to determine whether a claim is valid.
Although the principal is legally obligated to pay claims, the surety typically will pay a claim up front, on the principal’s behalf. But that doesn’t let the principal off the hook. It merely shifts the obligation from paying a claimant directly to repaying the surety. Failing to do so can result in the surety suing the principal to recover the claim amount.
What Does a Lottery Bond Cost?
The annual premium for a Mississippi lottery bond depends on the premium rate set by the surety through an underwriting process based mostly on the principal’s personal credit score. That’s considered the best measure of risk for 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 Mississippi that you need at a competitive rate.