How to Get a Lottery Agent Bond in Florida

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How to Get a Lottery Bond in Florida

Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Florida Lottery Bond needs.

How Do I Get a Lottery Retailer Agents License?

In Florida, the Florida Lottery Commission licenses retail lottery agents.

What Does the Licensing Process Involve?

Florida’s process for licensing retailers is a little unusual in that you are required to work with a Lottery representative rather than apply on your own. You can download the application from the Lottery website, but you must contact the closest Lottery District Office and request the help of a Florida Lottery Sales Representative. The Representative will help you with the application form and submit it for you, along with any required supporting documents, which may include:

  • A voided business check
  • The signed retailer contract
  • Payment of the $100 application fee
  • If the retail location is leased, written permission from the landlord for the installation of communication equipment

A Lottery Representative must also inspect your retail location to ensure that it meets applicable standards imposed by the Americans with Disabilities Act (ACT). The Lottery Representative will complete the ADA Site Survey form.

They will perform a background check as part of the processing of your application. After they review your application and background check, you may need to provide a surety bond before they will issue your lottery retailer license.

Why Is a Lottery Bond Required?

According to Florida’s Lottery Rules, “A retailer applicant shall be required to post a bond, certificate of deposit, or other security if it is determined during the background investigation that such requirement is necessary to secure payment of lottery proceeds.” The required amount of the bond will be determined by the Florida Lottery Commission (the “obligee” requiring the bond).

How Does a Lottery Bond Work?

The obligee is one of three parties to the legally binding Florida lottery bond agreement. The other two are the lottery retailer (the bond’s “principal”) and the company guaranteeing the bond (the “surety”). In addition to serving as the principal’s guarantee to abide by all Florida Lottery Commission rules and remit all proceeds from lottery sales to the state, the bond legally obligates the principal to pay all valid claims for financial losses resulting from any violation of Lottery rules.

Upon receipt of a claim, the surety will determine whether it is legitimate and if it is, the surety will pay it initially and then receive compensation from the principal. If the principal is not forthcoming with that repayment, the surety can take legal action to recover the claim amount.

What Does a Lottery Bond Cost? 

The premium for a Florida lottery bond varies depending on the bond amount required by the Lottery Commission and the premium rate established by the surety. Florida lottery bonds are subject to underwriting, with the primary underwriting concern being the principal’s ability and willingness to repay the surety for claims paid on the principal’s behalf. 

The underwriters use the principal’s personal credit score as the primary measure of the risk to the surety. A high credit score can result in a premium rate as low as one percent because the risk is considered low. A bond applicant with poor credit will pay a substantially higher premium rate because of the greater risk to the surety.

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