What is a Lottery Bond?
A lottery bond, also known as a lotto bond, is a surety bond required by most states of individuals or businesses who operate lottery equipment, or sell lottery tickets to the public.
The bond serves as a guarantee that the bond holder will operate in accordance with Michigan regulations for sellers of lottery tickets and operators of lottery equipment, and will do so honestly and fairly. It also guarantees that they will pay all due taxes to the state lottery upon sale of tickets.
Lottery bonds are meant to protect the public and the state from individuals who are dishonest, mishandle funds, do not pay the necessary taxes, tamper with lottery equipment or otherwise cause financial harm to customers.
Like all surety bonds, lottery bonds are a form of agreement between three sides:
- A principal - the individual selling tickets or operating lottery equipment
- An obligee - the Lottery Commission
- A surety - the guarantor of the bond
If the principal gives the obligee a legitimate reason to file a claim against their surety bond, the surety bond company has to address this issue and pay compensation to the obligee(s) for any financial harm they’ve suffered. In other words, the surety bond offers financial protection and compensation to obligees in cases of dishonest business practices.
The surety bond also includes an indemnity agreement, which obliges the principal to repay the surety in full if a claim is filed against their bond.
Questions about Lottery Lotto Bonds in Michigan
How much does a lottery bond cost in Michigan?
The cost of your lottery bond is a percentage of the total amount of the bond you need to obtain. Amounts for lottery bonds are determined on a state level.
When determining the rate at which you can obtain your bond, sureties take into account a number of financial indicators and predictors, such as your personal credit score, personal finance history, and business financial statements.
Among these, credit score is the most important, which means that if you have a high credit score, you will most likely be offered a low rate on your bond. Applicants with high scores can expect a so-called standard market rate, between 1%-4% of the total amount of their bond.
You can get a free quote on your bond by submitting your surety bond application through the application link. As soon as we have processed your application we will provide you with a quote on your lottery bond, entirely free of charge and without any obligations attached.
Can I get a lottery bond with bad credit?
Applicants with a low or nonexistent credit score often have trouble getting bonded, since they are considered a higher risk. This means they are faced with difficulties in conducting business, which may even make it impossible for them to improve their standing.
We at Lance Surety Bonds have created our Bad Credit Surety Bonds program, in order to enable such applicants to get bonded. This is made possible by our long-term partnerships with A-rated and T-listed surety bond companies, which are among the best and most reliable companies in the whole country.
Naturally, rates under this program are slightly higher, in order to mitigate the increased risk that comes with bonding bad credit applicants. Applicants with damaged credit usually see rates ranging from 5%-15%.
Regardless of the credit type of our applicants, Lance Surety Bonds is dedicated to always finding the best and lowest rates for our clients, and enabling them to get their bond as quick as possible.
How do I get a lottery bond in Michigan?
To get your lottery bond, you just need to apply online and submit a simple surety bond application form. Approvals for lottery bonds are fairly quick, so you can expect to get your free bond quote soon after your submission.
You can also call us at (877)-514-5146 anytime to ask our surety experts any additional questions you may have or request assistance with your application. We will be happy to help!"
Lottery Bonds in Other States
Select a state
- Select your state
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew PoincotLong story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie MartinezWe decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!