How to Get a Lottery Retailer License in Wyoming
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 Wyoming Lottery Retailer Bond needs.
How Do I Get a Lottery Retailer Agents License?
The Wyoming Lottery Corporation issues Wyoming lottery retailer licenses. Upon approval of your application and the execution of a lottery retailer contract, you will receive your Certificate of Authority.
What Does the Licensing Process Involve?
To initiate the licensing process, download and print the WyoLotto license application. Fill it out completely and submit it to the Wyoming Lottery at the address provided. Your signature on the application authorizes the Wyoming Lottery Corporation to investigate your credit history, business and personal financial records, and criminal history. If their investigation gives them any cause for concern about your level of financial responsibility, you may be required to purchase a surety bond in an amount established by the Lottery Corporation.
Why Is a Lottery Bond Required?
The bonding requirement protects both the state of Wyoming and the public against financial loss stemming from a lottery retailer’s noncompliance with state statutes and WyoLotto regulations, as well as the terms of the lottery retailer contract. Any act of malfeasance by a bonded lottery retailer causing a loss gives the Wyoming Lottery Corporation (the “obligee” requiring the bond) or other injured party the right to file a claim and receive compensation for their damages up to the full bond.
How Does a Lottery Bond Work?
The lottery retailer (the bond’s “principal”) is legally obligated to pay any valid claim against the bond. Both the obligee and the third party to the lottery bond contract—the bond’s guarantor (or “surety”)—are indemnified against any legal responsibility for claims.
However, the surety has guaranteed the bond, specifically the payment of claims by the principal. Consequently, after verifying a claim’s validity, the surety will pay it initially and then be repaid by the surety. There is, of course, the risk the principal won’t repay the surety as required, in which case the surety can take legal action to collect the funds from the principal.
What Does a Lottery Bond Cost?
Wyoming lottery bonds are sold for a small percentage of the coverage amount, which varies by retailer. That percentage is the premium rate, which is assigned by the surety to each bond applicant based on an underwriting assessment of the risk the surety takes by paying claims on the principal’s behalf. That risk is measured largely on the basis of the principal’s personal credit score.
The premium rate should be in the 1-2% range for applicants with good credit. Those with lower credit scores will be assigned a higher premium rate.
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Our surety bond professionals will get you the lottery retailer bond in the Wyoming you need at a competitive rate.