How to Get a Lottery Agent License in North Dakota

  • Home
  • How to Get a Lottery Agent License in North Dakota

How to Get a Lottery Agent License in North Dakota 

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 Dakota lottery retailer bond needs.

How Do I Get a Lottery Agent License?

In North Dakota, lottery retailers are licensed by the Office of the Attorney General, Lottery Division. For businesses that are already established and properly registered in the state of North Dakota and meet the eligibility criteria, the licensing process begins with the submission of a completed application.

What Does the Licensing Process Involve?

A signed lottery retailer license application, once submitted, authorizes the Office of the Attorney General to conduct investigations of the applicant’s criminal history, financial and credit information, delinquent taxes, and penalties. Once these investigations are complete and the entire application package is evaluated, the application will be denied, approved, or approved on the condition the applicant provides a security deposit that will remain in place for a minimum of one year, and perhaps longer. That security deposit may be in the form of a surety bond.

Why Is a Lottery Bond Required?

A lottery bond is required when the credit check performed on an applicant for licensure as a lottery retailer yields unsatisfactory results. The required bond amount is determined by the Lottery Director (the “obligee” requiring the bond) based on the applicant’s credit and financial circumstances. The purpose of the bonding requirement is to protect the State against monetary loss resulting from the retailer’s failure to remit lottery sales proceeds or from some other malfeasance. 

The surety bond requires the lottery retailer (the “principal” in the surety bond agreement) to operate in accordance with all North Dakota Lottery rules and regulations. It also legally obligates the principal to pay valid claims for monetary losses caused by the agent’s unlawful or unethical actions.

How Does a Lottery Bond Work?

The third party to a North Dakota lottery bond, in addition to the obligee and the principal, is the bond’s guarantor (the “surety”). The surety determines the validity of claims submitted against the bond and guarantees the principal’s payment of all valid claims. Because of that guarantee, the surety normally pays a claim on the principal’s behalf and is reimbursed by the principal at a later date. The surety can take legal action, if necessary, to recover the bond amount from the principal. 

What Does a Lottery Bond Cost? 

The annual premium for a North Dakota lottery bond is the product of the required bond amount and the premium rate set by the surety. The premium rate is based largely on the principal’s personal credit score, which is the best measure for the risk the surety will take on in paying claims on the principal’s behalf. 

A high credit score is correlated with a low risk and is assigned a credit score that is in the range of one to two percent. The premium rate will be higher for someone with a low credit score.

Get a Quote

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