How to Get a Lottery Agent License in Nebraska

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How to Get a Lottery Retailer License in Nebraska

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 Nebraska Lottery Retailer Bond.

How Do I Get a Lottery Retailer Agents License?

If you find the idea of additional revenue streams for your retail establishment appealing, you will need to get licensed as a lottery game retailer by the Nebraska Lottery Division of the Department of Revenue (the Division).

Download the application forms and complete them in their entirety, as they will return incomplete applications.

What Does the Licensing Process Involve?

Simply complete the application forms in accordance with the instructions, and return them to the Division by fax or U.S. mail using the contact information provided in the instructions and printed on the forms. There is no application fee. 

Upon receipt of your completed application, the Division will conduct background and credit checks and determine whether to require a lottery bond.

Why Is a Lottery Bond Required?

According to the Division, any lottery bond shall be in “the amount determined by the Division to safeguard the State’s interest in tickets to be sold by a Lottery Game Retailer and the resulting proceeds due the Division.” A Nebraska lottery bond not only requires a lottery game retailer to abide by all Lottery Division statutes and rules, but also to pay damages to the Division or other party for a financial loss stemming from an unlawful or unethical act that violates the terms of the lottery retailer contract and/or surety bond agreement.

How Does a Lottery Bond Work?

There are three parties to the legally binding Nebraska lottery bond agreement: the Lottery Division (the “obligee”), the lottery game retailer (the “principal”) and the bond’s guarantor (the “surety”). 

When a claim is filed against a lottery bond, the surety investigates it to determine whether it is valid and therefore must be paid. 

Although the principal is legally obligated to pay any valid claim, the surety has guaranteed that payment. Therefore, the surety normally pays a legitimate claim initially; to be reimbursed later by the principal. A principal who fails to repay that debt can be sued by the surety to recover the funds and could pay court costs and legal fees as well.

What Does a Lottery Bond Cost? 

Nebraska lottery bonds go through underwriting to determine what the premium rate will be for each bond applicant. The underwriters assess the risk of the surety not being reimbursed for claims paid on the principal’s behalf. That assessment is based largely on the principal’s personal credit score as a risk measurement.

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 Nebraska that you need at a competitive rate.