A lottery bond is a bond a state lottery requires from stores that sell lottery tickets. It promises the store will pay for the tickets and hand over the sales money.
- Who needs it
- Stores that want to sell lottery tickets
- Typical bond amount
- Set by the state lottery, usually small
- What you pay
- A low yearly premium
- Term
- One year, renewable
- A claim protects
- The state lottery
What is a Lottery Bond?
A lottery bond protects the state lottery. Stores sell tickets and collect cash that belongs to the lottery. The bond promises the store will pay that money in. If the store does not, the lottery files a claim.
It is a simple, low-cost bond that lets a store become an approved lottery retailer.
Who needs a Lottery Bond?
Stores and businesses that want to sell lottery tickets need one in many states. This includes gas stations, convenience stores, and grocery stores.
The state lottery sets the rule and the bond amount, which is usually small.
How does a Lottery Bond work?
The steps are short:
- The state lottery sets the bond amount.
- You buy the bond from Junno Surety for a small fee.
- You file the bond with your lottery retailer application.
- The lottery approves you to sell tickets.
- If you do not pay the lottery what you owe, they file a claim.
Send in your lottery money on time and the bond is just a formality.
How much does a Lottery Bond cost?
Lottery bonds are usually small and cheap. Many cost only a low yearly premium because the bond amount is low.
Junno Surety can set you up fast at the industry rate minus 5%.
What happens if someone files a claim?
A claim happens when a store keeps lottery money or does not pay for tickets. The lottery files a claim, the bond pays what is owed up to the bond amount, and then the store repays the bond company.
How to get your Lottery Bond from Junno Surety
Junno Surety can issue your lottery bond fast so you can start selling tickets and bringing in foot traffic. Send us your state and bond amount, and we will quote you the same day.
We are a licensed surety bond agency and can often issue your lottery bond the same day. Start your free quote → or call (762) 499-0237.
Things to know about a Lottery Bond
A lottery bond is a small, simple bond that opens a nice door for a store. Selling lottery tickets brings in foot traffic, and those customers often buy other things while they are in. The state just wants to know that the ticket money you collect will be paid in. Since the bond amount is small, the price is low. To stay claim free, treat lottery money as the lottery's money. Keep it separate and send it in on time. Keep your sales records in order. Do that, and renewing your bond each year is quick and easy, and your store stays an approved lottery retailer in good standing.
Frequently asked questions
Why do I need a lottery bond?
The lottery wants to be sure you pay in the ticket money you collect. The bond gives them that safety net.
How much does it cost?
Usually just a low yearly premium, because lottery bond amounts are small.
How fast can I get one?
Often the same day. Junno Surety can issue your lottery bond quickly so you can start selling.
Is a lottery bond expensive?
No. Because the bond amount is small, the yearly premium is low. It is one of the cheaper bonds a store will carry.
How soon can I start selling tickets?
Once your bond is filed and the lottery approves you. We can issue your bond fast, often the same day, to speed things up.