Continuous bond for bingo prize fee schedules cost
Individuals applying for an original regular license to conduct bingo events are required by the Texas Lottery Commission to post a surety bond. Bond amounts are based on the applicant’s license class, which are determined by the commission during the licensing process. There are 10 license fee classes, and the bond amount must be between $125 and $7,000. Applicants should verify their license class and required bond amount with the commission prior to bonding.
These bonds are subject to underwriting consideration, so the price you’ll pay for your bond depends not only on your required bond amount but also on a review of your personal credit report.
Why this bond
Continuous bonds for bingo prize fee schedules in Texas ensure that principals (licensees/permit holders) comply with all provisions of Texas Occupations Code, Chapter 2001, which is also referred to as the Bingo Enabling Act. Specifically, principals pledge to pay all bingo prize fees including interest, penalties and costs that become due to the state through the Texas Lottery Commission.
If the principal fails to conduct business ethically and lawfully, the bond protects the state from financial loss up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
Bonds for bingo prize fee schedules details
Continuous bonds for bingo prize fee schedules in Texas remain in full force and effect until canceled by the surety. The surety can be relieved of further liability by giving written notice of its withdrawal of the bond to the Texas Lottery Commission at least 30 days prior to the effective date of termination.
The commission can demand additional bond coverage if it determines that the current bond amount is insufficient.
Whether the bond is needed for a one-time event or for regular events must be indicated on the bond form.
Legally conduct bingo activities
Before you can conduct bingo activities in Texas, your organization must be licensed. The following organizations are eligible for licensure:
- religious societies
- nonprofit organizations whose activities are for treatment programs
- fraternal organization
- veterans organization
- volunteer fire departments
- volunteer emergency medical services providers
All organizations must have been established in Texas for at least 3 years. Furthermore, each bingo chairperson for applying organizations must complete the training required by the commission.
All license applications must be submitted to the commission and be accompanied by the following items:
- license fee
- Texas taxpayer identification number
- surety bond in the proper amount
- statement signed by the applying organization’s bingo chairperson identifying the information submitted
- sufficient facts relating to the applicant’s organization
- copy of the most recently filed Form 990 (Internal Revenue Service Form)
- letter of good standing form the applicant’s parent organization
- and more
The commission might require applying organizations to attend a pre-licensing interview.Licenses are valid for only the specific times, days and location indicated on the license.Take the first step toward becoming licensed by purchasing the surety bond you need!
Apply for your surety bond
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