How to Get a Lottery Retailer License in New Hampshire
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 New Hampshire Lottery Retailer Bond.
How Do I Get a Lottery Retailer Agents License?
If you are interested in gaining additional income streams for your retail establishment, you will need to get licensed as a lottery retailer by the New Hampshire Lottery Commission.
Download the application packet and complete it in its entirety, as they will return incomplete applications, which will only prolong the licensing process. Completed applications, supporting documents, and payment of fees must be submitted via U.S. mail to the address provided in the application packet.
What Does the Licensing Process Involve?
When you submit a completed application, you are authorizing the New Hampshire Lottery Commission to conduct background checks, including criminal records and a detailed credit history. If your credit history does not meet the Commission’s standards, you may be required to provide a surety bond in an amount to be determined by the Commission before they approve your application.
Why Is a Lottery Bond Required?
The license application incorporates the New Hampshire Lottery Uniform Retailer Agreement—the contract between the New Hampshire Lottery Commission and the licensee. Like that agreement, a New Hampshire lottery bond is a legally binding contract that obligates a lottery retailer to comply with all New Hampshire lottery statutes and the rules established by the Lottery Commission (the “obligee” requiring the bond).
A lottery bond also establishes a legal obligation for the lottery retailer (the bond’s “principal”) to compensate the obligee or any other party incurring a financial loss because of the principal’s noncompliance with applicable statutes and/or lottery rules. Perhaps the most common violation is failing to remit lottery sales proceeds to the state.
How Does a Lottery Bond Work?
There are three parties to a New Hampshire lottery bond—the obligee, the principal, and the bond’s guarantor (the “surety”). The principal is legally obligated to pay claims the surety finds to be legitimate. But the surety has guaranteed the payment of claims and will therefore pay a claim initially, to ensure its prompt resolution.
That does not, however, relieve the principal of the obligation to pay; it simply shifts the obligation to repayment of the debt to the surety. If not reimbursed for claims paid on the principal’s behalf, the surety can take legal action against the principal.
What Does a Lottery Bond Cost?
The annual premium for a New Hampshire lottery bond is a small percentage of the required bond amount established by the obligee. That percentage is the premium rate, which is set by the surety through an underwriting assessment of the risk involved in paying claims on the principal’s behalf. That assessment uses the principal’s personal credit score as a risk indicator.
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 New Hampshire that you need at a competitive rate.