How to Get a Lottery Agent License in Michigan

  • Home
  • How to Get a Lottery Agent License in Michigan

How to Get a Lottery Retailer License in Michigan

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 a Michigan Lottery Retailer Bond.

How Do I Get a Lottery Retailer Agents License?

To enjoy the additional income streams you acquire when you become a Michigan lottery retailer, you’ll need to obtain a license from the Michigan Bureau of State Lottery.

What Does the Licensing Process Involve?

The Michigan Lottery license application packet includes several authorizations that allow the Lottery Bureau to conduct background and credit checks and look into your finances. The application also incorporates the terms and conditions of the legal contract between the Lottery Bureau and every licensed retailer. Follow the instructions included in the application packet and submit the completed application, along with payment of the nonrefundable $150 application fee.

Some applicants may need to provide the Lottery Bureau with a surety bond as a condition for licensing.

Why Is a Lottery Bond Required?

When a surety bond is required, it’s because the Lottery Bureau (the bond’s “obligee”) has concerns about the applicant’s financial circumstances and the possibility of the applicant’s lottery activities resulting in financial harm to the State of Michigan and the public. The terms of a Michigan lottery bond require a licensed lottery retailer (the bond’s “principal”) to: 

  1. conduct lottery business in full compliance with Michigan’s lottery statutes, and
  2. pay valid claims for monetary damages resulting from any noncompliant action. 

As the obligee requiring the bond the Bureau will establish the bond amount on a case-by-case basis.

How Does a Lottery Bond Work?

There are three parties to a Michigan lottery bond—the obligee, the principal, and the bond’s guarantor (the “surety”). As the bond’s guarantor, the surety will pay a legitimate claim initially. However, the legal obligation to pay claims belongs solely to the principal, so the principal must then reimburse the surety for the claim amount. Failure to repay that debt can result in the surety taking legal action against the principal.

What Does a Lottery Bond Cost? 

The premium rate for a Michigan lottery bond is established through underwriting. The surety’s primary concern is the risk of not being reimbursed for claims paid on the principal’s behalf. That risk is closely correlated with the principal’s personal credit score. It’s safe to assume that someone with a history of financial responsibility will continue to handle credit and pay debts responsibly as a lottery retailer.

Lottery bonds typically cost in the 1-2% range for applicants with good credit. Applicants with lower credit scores may pay a higher premium rate.

Get a Quote

Our surety bond professionals will get you the lottery retailer bond in Michigan that you need at a competitive rate.