What Is an Ohio Lottery Bond?
If you’d like to become a lottery retail agent in Ohio, you need to post an Ohio lottery bond. It’s a necessary criterion in getting your registration with the Ohio Lottery Commission. Many states require lottery retailers to get a lottery bond.
The goal of the bond is to guarantee that lottery retailers in the state will follow applicable rules, such as the Ohio Revised Code Title . The bond protects the state lottery from non-payment on ticket sales, or other financial fraud on the side of retailers.
The Ohio lottery bond functions like most other surety bonds do. It constitutes a contractual agreement between three parties. Your lottery retailer business is the principal who has to obtain the bond. The Ohio Lottery Commission is the obligee, and the surety is the entity that underwrites the bond.
Questions about Lottery Lotto Bonds
Who needs to obtain an Ohio lottery bond?
If you’d like to operate as a lottery retailer in Ohio, you will need to meet the Ohio lottery bond requirements in order to be granted this right. Some KENO retailers may be exempt from this requirement under the Liability Deposit program and can submit a refundable deposit instead. However, in that case you’ll need to have your weekly liabilities monitored by the state Lottery.
The bond is needed to guarantee your retail business will follow state regulations governing the license. This also entails protection for the Ohio Lottery and your customers, against non-payment of monies that you may owe for sold or winning tickets.
How much does an Ohio lottery bond cost?
The bond price you have to pay depends on the lottery bond amount that you have to provide. In Ohio, the current required bond amount is set at $15,000.
Your bond premium, however, is only a fraction of the bond amount you need to post. If you qualify for the standard bonding market, you are likely to get a rate of 1% to 5%. This means that for a $15,000 bond, your premium may be in the range of $150 to $750.
Your exact bond cost is formulated on the basis of your personal and business finances. When you apply for a bond, your surety has to examine your personal credit score, business financials, assets and liquidity, and even your professional experience. If your overall profile is strong, you will be seen as a low-risk applicant and will get a lower bond price.
For more details on how your bond premium is set, our surety bond cost page is a good resource to consult.
|Bond Type||Surety Bond Amount||Credit Sore|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Ohio Lottery Bond||$15,000||$112-$250||$150-$375||$375-$750||$750-$1,500|
Can I get bonded with bad credit?
Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants with problematic finances. It’s designed to assist lottery retail agents with low credit scores, tax liens, bankruptcies, or civil judgements to get the bond they need.
The typical bad credit bonding rates for Ohio lottery bonds are between 5% and 10%. The slightly higher price is there to compensate for the increased bonding risk. Still, you are guaranteed a top price with us. We have close partnerships with a number of A-rated, T-listed surety companies, so we can offer you a great bonding option no matter what.
How do I get my Ohio lottery bond?
Apply online to get your free Ohio lottery bond quote in no time. You can also complete the full application and attach the needed documents in order to receive your exact bond price.
Need more information? Our How to Get Bonded page is a helpful resource about the intricacies of the bonding process.
For further questions, we are here to help. Just call us at (877) 514-5146.
How are bond claims handled for Ohio lottery bonds?
Your lottery bond doesn’t work like insurance for your business. Its purpose is to protect the Ohio Lottery and your customers from fraudulent activities you might engage in.
That’s why if you transgress the rules set in the bond, you might get a claim on your bond. On proven claims, affected parties can get a compensation up to the penal sum of your bond. While your surety will cover all costs at first, you have to repay it in full soon after.
Avoiding claims is the best course of action for your business. They can harm your finances and reputation and may prevent you from getting bonded in the future.