Lottery agency bond cost
Maryland lottery agency surety bonds are required by the State of Maryland Lottery Agency. The required amounts of these bonds vary based on the amount of lottery tickets sold last year in the lottery retailer’s district. Your exact bond cost is subject to underwriting consideration, including a review of your credit report.
Why this bond
This specific bond ensures that principals (lottery retailers) will pay all taxes and fees owed to the state on time and in full. If a lottery retailer fails to pay all of the appropriate tariffs and a claim is brought against the bond, the surety will compensate the state for all taxes owed. The lottery retailer is then responsible for reimbursing the surety for all amounts paid out.
Specifically, Maryland lottery agency surety bonds require all lottery retailers to abide by the rules and regulations set by the Maryland Lottery Agency.The bond can be issued for a specific term, or it can be issued to remain in effect continuously until canceled. The state requires at least 60 days’ notice from the surety company if the bond were to be canceled.
Become a lottery agency
When filling out your licensing application, be ready to provide all of the following information:
- business address
- name of business and line of work
- estimated weekly floor traffic
- business hours
- identification of all partners and stockholders
- if any officer of your business has ever been charged with a criminal offense
The Maryland Lottery Commission reserves the right to revoke a license if incorrect information is knowingly entered on the license application.Lottery retailers must also agree to:
- provide all required claim services and payment of all valid winners
- not sell to any customers under 18 years of age
- complete claim forms in the case of jackpot winners
- avoid financial bankruptcy
- maintain current and accurate records of sales and payouts related to lottery services for no less than 3 years
- not be in the sole business of selling lottery tickets
- provide electrical service for all lottery equipment
- give at least 30 days’ notice of intent to cease business operations, cease lottery services, move locations or change in ownership
Apply for your surety bond
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