How to Get a Lottery Retailer License in South Carolina
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 all of your South Carolina Lottery Retailer Bond needs.
How Do I Get a Lottery Retailer Agents License?
The South Carolina Education Lottery website provides easy access to the forms and instructions you will need to become licensed as a lottery retailer. Becoming a lottery retailer will give your establishment additional income streams in the form of commissions on sales and bonus commissions when you sell winning tickets for $10,000 or more.
What Does the Licensing Process Involve?
The lottery retailer license application packet includes several forms you’ll need to complete, such as an EFT Form. Forms should be completed with personal information on each of the establishment’s owners, and the lottery retailer contract. Submitting a fully completed, signed application authorizes the South Carolina Education Lottery (SCEL) to conduct a criminal records check and credit check and request verification from the South Carolina Department of Revenue that nobody named in the application owes any unpaid income taxes.
The completed application packet must be submitted to SCEL by mail, along with payment of the application fee.
After reviewing an application, the lottery commission may require the applicant to post a surety bond in an amount the commission will establish, but not to exceed the district’s average lottery sales for two billing periods.
Why Is a Lottery Bond Required?
SCEL may require a lottery bond from an applicant who does not meet the commission’s financial responsibility standards. The bond protects the state of South Carolina and the public against monetary damages caused by a licensed lottery retailer’s noncompliance with the state’s lottery regulations. The bond ensures funds will be available to compensate SCEL or other injured party in such cases.
How Does a Lottery Bond Work?
In purchasing a South Carolina lottery bond, the lottery retailer (known as the bond’s “principal”) enters into a legally binding contract with SCEL (the “obligee” requiring the bond) and one other party—the bond’s guarantor (referred to as the “surety”). That contract legally obligates the principal to pay all claims against the bond that the surety finds to be valid, but the surety guarantees their payment.
This practice ensures swift resolution of a claim while allowing the principal some time to come up with the cash to cover the claim amount. Not reimbursing the surety can result in the surety taking legal action against the principal.
What Does a Lottery Bond Cost?
It costs relatively little to purchase or renew a South Carolina lottery bond—only a small percentage of the required bond amount. That percentage is the premium rate, which the surety assigns each bond applicant based on an underwriting assessment of the risk of the surety not being reimbursed for claims paid on the principal’s behalf.
The best measure of that risk is the applicant’s personal credit score. A high score is correlated with low risk, so the premium rate for someone with good credit should be in the 1-2% range.
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Our surety bond professionals will get you the lottery retailer bond in South Carolina you need at a competitive rate.
