How to Get a Lottery Retailer License in Wisconsin
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 Wisconsin Lottery Retailer Bond needs.
How Do I Get a Lottery Retailer Agents License?
To begin enjoying the additional income your establishment can gain through selling Wisconsin lottery tickets, you’ll need to become licensed as a lottery retailer. To do so, you’ll need to download, print, complete, and submit an application packet.
What Does the Licensing Process Involve?
Follow the instructions carefully, as there is a delay if they return the packet because of missing information. Be sure to include a check or money order for the nonrefundable $75 application fee.
Each individual listed on the application must complete a Personal Data form. If the application is for a sole proprietor or partnership, the spouses of those individuals must also complete a portion of the Personal Data form as consent for the credit check performed on all applicants.
Upon review of the completed application packet and results of the criminal records check and credit history check, the Wisconsin Lottery has the option of requiring an applicant to provide a surety bond in an amount determined by the Lottery Commission.
Why Is a Lottery Bond Required?
The Wisconsin Lottery may require a fidelity bond from applicants who fall short of the state’s financial responsibility standards. Its purpose is to protect the state of Wisconsin and the public from monetary damages that could result from a lottery retailer’s failure to abide by the Wisconsin lottery statute and the terms of the Wisconsin Lottery Retailer Contract. An act of malfeasance, such as misappropriation of lottery sales proceeds entitle the Lottery Commission to file a claim against the retailer’s lottery bond and receive compensation for the loss.
How Does a Lottery Bond Work?
A Wisconsin lottery bond establishes a legally binding contract among the Wisconsin Lottery Commission (known as the bond’s “”obligee”), the lottery retailer (the bond’s “principal”) and the bond’s guarantor (the “surety”). The surety guarantees valid claims are paid, but the legal obligation to pay them belongs solely to the principal. The surety is indemnified against any legal responsibility for the claim amount.
Having guaranteed the payment of claims, the surety will pay a valid claim initially, but the principal must subsequently reimburse the surety. Failure to do so can result in the surety taking legal action against the principal to recover the funds.
What Does a Lottery Bond Cost?
Wisconsin lottery bonds are sold for an annual premium determined by multiplying the required bond amount by the premium rate, which the surety sets through an underwriting assessment of the risk associated with paying claims on the principal’s behalf. The main factor considered by the underwriters is the applicant’s personal credit score. The average premium rate for someone with good credit is in the 1-2% range. The premium rate will be higher for those with lesser credit.
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Our surety bond professionals will get you the lottery retailer bond in the Wisconsin you need at a competitive rate.