How to Get a North Carolina Lottery Bond

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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 North Carolina Lottery Bond needs.

How Do I Get a Lottery Retailer Agents License?

In North Carolina, the North Carolina Education Lottery (NCEL) licenses retail lottery agents.

What Does the Licensing Process Involve?

You can download the application packet, along with detailed completion instructions and an application checklist, from the NCL website. 

After you submit the completed application package, required supporting documents, and payment of the application fee (currently $75), it will be reviewed for completeness. The remaining process steps include:

  • Background checks (credit, taxation, criminal history) and physical site inspection (prior to installation of communication equipment) by NCEL
  • Notification of approval or denial; an approval may be conditioned upon obtaining a North Carolina lottery bond
  • Site assessment for compliance with the Americans with Disabilities Act (ADA)
  • Issuance of your license

Why Is a Lottery Bond Required?

NCEL has the option of requiring a surety bond or other form of security if there are concerns about a lottery retailer remitting the proceeds from lottery sales, as specified in the Retailer Contract. The bond itself is a legally binding contract that obligates the lottery retailer (referred to as the bond’s “principal”) to compensate the state of North Carolina and consumers for financial harm resulting from unlawful acts such as falsifying sales records. 

After two years, NCEL will conduct another investigation and decide whether a bond is still required.

How Does a Lottery Bond Work?

There are two parties to a North Carolina lottery bond in addition to the principal—NCEL (the “obligee” requiring the bond and protected by it) and the bond’s guarantor (known as the “surety”). When a claim is received, the surety will make sure it is valid before paying it on behalf of the principal. 

That does not eliminate the principal’s obligation; it merely transforms it into an obligation to repay the surety, who is indemnified against liability for claims. The surety can take legal action against the principal for failing to repay that debt.

What Does a Lottery Bond Cost? 

North Carolina lottery bonds are subject to underwriting. The obligee will establish the required bond amount for a principal, and the surety will set the premium rate that will apply. The primary underwriting goal is to determine the risk the surety will assume in agreeing to guarantee the payment of claims by the principal. This determination is based on the principal’s personal credit score. 

The premium rate for someone with good credit will most likely be in the standard market range of one to two percent. For someone with lesser credit, the surety will assign a higher premium rate because of the higher risk of not being repaid for claims paid on the principal’s behalf.

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Our surety bond professionals will get you the North Carolina lottery bond you need at a competitive rate.