How to Get a Lottery Retailers License in Montana

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How to Get a Lottery Retailer License in Montana 

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 Montana Lottery Retailer Bond.

How Do I Get a Lottery Retailer Agents License?

Many Montana retailers are enjoying the benefits of the additional income streams gained by becoming a lottery sales agent. In Montana, lottery license applications are submitted online through the Department of Revenue’s business licenses eStop Portal

What Does the Licensing Process Involve?

Simply follow the online instructions and complete the required fields. There is a nonrefundable fee of $50, which covers the cost of the credit and criminal background checks that are mandatory for all applicants. Upon completion of those checks and tentative approval of your application, you will need to purchase a Montana lottery bond in an amount determined by the Montana Lottery Commission.

Why Is a Lottery Bond Required?

The bonding requirement provides protection for the state and the public against financial harm resulting from a lottery retailer’s noncompliance with the Montana State Lottery Act and associated administrative rules. In addition to legally obligating a licensed lottery agent to conduct lottery activities in accordance with Montana law, a lottery bond also obligates the lottery retailer to pay valid claims for damages.

How Does a Lottery Bond Work?

A Montana lottery bond is a legally binding contract among three parties known as the obligee, the principal, and the surety. The Montana Lottery Commission is the obligee requiring the bond. The lottery retailer is the principal, and the bond’s guarantor is the surety.

The terms of a Montana lottery bond make the principal legally responsible for paying claims, but the surety has guaranteed their payment. Consequently, the usual practice is for the surety to pay a legitimate claim initially. But the lottery bond agreement also indemnifies the surety against any legal responsibility for paying claims, so the principal must subsequently repay the surety. Failing to do so gives the surety legal grounds to sue the principal to recover the claim amount.

What Does a Lottery Bond Cost? 

The annual premium for a Montana lottery bond is the product of the required bond amount and the premium rate, which is set by the surety through an underwriting process. The main underwriting consideration is the risk of the surety not being repaid for claims paid on the principal’s behalf. That risk is assessed based largely on the principal’s personal credit score.

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.

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