Before a lottery agent can be licensed an Ohio lottery bond must be provided to the agency Director. Upon receipt of a license application the Director will consider the financial responsibility of the applicant and his or her business, the applicant’s credit-worthiness and integrity in past financial transactions and the physical security of the applicant’s place of business. The Ohio lottery sales retailer bond is in part a guarantee that proceeds from game sales will be kept safe. Pursuant to the Lottery Commission’s Retailer FAQs, the Lottery issues tickets on consignment, meaning that the lottery agent pays for tickets AFTER they have been sold. Because the lottery allows tickets to be paid in this manner there is a need for the Commission to have a way to collect monies due in the event of a lottery retailer non-payment. The Ohio lottery bond protects the state against any monies due to the Lottery in regards to the retail location. The initial surety bond must be written in the amount of $15,000, however the Director can increase the bond amount based on the lottery agent’s sales volume and the agent’s payment history. The Ohio lottery sales retailer bond form guarantees that that agent will comply with all laws, rules, policies and regulations governing the license, so although it appears to be a simple compliance obligation the underlying statute contains very specific duties and a significant financial guarantee. The surety bond is not cumulative and it is cancelable on thirty days written notice by surety. The Ohio lottery bond has a six month “tail”, meaning a party may bring an action against the surety and bond for up to only six months from the date of cancellation
Did you know Odell Insurance carries lottery Bonds ?
Why do I need a bond?
The Lottery issues tickets on consignment, meaning you pay for the tickets after you sell them. Because the Lottery allows tickets to be paid for after they are sold there is a need for the State to have a way to collect on any monies due in the event of a non-payment. The bond protects the state against any monies due to the Lottery in regards to the retail location.
How much is a bond?
The cost of a bond is determined by many different factors. Individual credit scores are a major factor. The average person should be able to purchase a bond for $10 - $15 dollars per thousand dollars of coverage.
Where do I get a bond?
A bond can be purchased from Odell insurance agency.