Ohio Lottery Sale Bonds

Protect the Lottery Commission and Ensure Earnings

Ohio lottery customers expect that their earnings will be disbursed in a timely manner. And the state lottery commission expects that lottery retailers will use the proceeds of ticket sales to pay winners. If either relationship falls through, the Ohio Lottery Sale Bond is there to make things right.

What is a Lottery Sale Bond?

A lottery sale bond is a form of surety bond. As a way to ensure that lottery winners get their promised earnings, the Ohio Lottery Commission requires Ohio Lottery Retailers to take out a license and surety bond before they can begin selling lottery products. In this case the Ohio Lottery Commission acts as the obligee, the retailer is the principal, and BK Insurance Financial is the surety. As with other surety bonds, if a claim is made, the surety will generally pay the claimant and then require reimbursement from the principal.

The lottery sale bond serves as a pledge on the part of retailers that they will comply with state lottery laws and regulations. Lottery sale bonds also act as deterrents to fraud, since a claim on the bond could harm a business’s finances and reputation and prevent future bonding.

Who Needs a Lottery Sale Bond?

Any Ohio retailer that is applying for a lottery license and planning to sell lottery products is required by state law to obtain an Ohio Lottery Sale Bond. The minimum bond required is $15,000, though it could be higher, depending on the amount of lottery products sold. Bond amounts are set by the lottery authority on a case-by-case basis and must be renewed at every license renewal. This precaution helps to ensure that when a winner comes to claim their prize, they will receive their full earnings. Lottery sale bonds also protect the state lottery against potential losses from retailer fraud.

Lottery Sale Bond Cost

As is true with all surety bonds, the cost of a lottery sale bond depends most on the applicant’s financial health and credit score. The most common range is anywhere from 1% to 5% of the total bond cost. So for the minimum bond amount of $15,000, retailers would generally be looking at a premium of $150 to $750. Of course the cost could be higher, depending on credit and other factors. Some of these factors include business financial history, assets, and professional experience. Those applicants who are deemed to be “low risk” will ultimately pay less. If an underwriter is not needed, and bonds are instant-issue–like they are at BK Insurance & Financial Services, Inc.–then the rate is generally lower.

Get a Surety Bond in Minutes

• Choose from the widest selection of instant issue bonds
• Apply online now and be approved in minutes
• Available in all 50 states, from the Dakotas to the Carolinas
• Need help? Speak with a live person in chat

Submit some basic information and just moments later you could have a bond approval–evaluation, qualification, and underwriting are all handled quickly and conveniently. Our rapid approval service is available in all 50 states for a wide variety of surety bonds. No matter where you do business–from Rhode Island or Delaware to Arkansas or Georgia–we can help. Use our easy search feature to sort available bonds by state or keyword, then select the specific bond that’s best for your business. If you’re having any trouble finding what you need, feel free to ask questions to our live team that’s ready to chat. These skilled surety bond experts can help you to meet all applicable requirements and get you back to handling your business.

Propeller Bonds - is our partner who works directly with our customers to write Ohio lottery sale bonds.