How to Get a Lottery Agent License in Vermont State
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 Vermont State Lottery Retailer Bond needs.
How Do I Get a Lottery Retailer Agents License?
To start the process of becoming licensed as a lottery retailer in Vermont, send an email to vlc.staff@vtlottery.com expressing your interest in doing so. Someone from the Vermont Lottery Commission will respond and furnish you with the necessary application forms and instructions.
What Does the Licensing Process Involve?
Fill out the application in its entirety, and submit it along with the application fee and any supporting documents. Your signature authorizes the Vermont Lottery to do a criminal records check and a credit check. They will also determine whether you owe any taxes to the state of Vermont or are behind in court-ordered child support payments or have other judgments against you.
The Vermont Lottery Commission may require any applicant for licensure to provide a surety bond in an amount to be determined by the Commission to “prevent any monetary loss to the State because of an agent’s activities in the sale of tickets.” A bond is most likely to be required for applicants who fall short of Vermont’s standards for financial responsibility.
Why Is a Lottery Bond Required?
Being granted a license to sell lottery tickets in Vermont obligates a retailer to comply with all state lottery statutes and regulations enforced by the Vermont Lottery Commission, such as remitting lottery sales proceeds to the state. Noncompliance can result in a financial loss to the state, but a lottery bond legally obligates the lottery retailer (the bond’s “principal”) to compensate the Lottery Commission (the “obligee” requiring the bond) for any such loss.
How Does a Lottery Bond Work?
A Vermont lottery bond is a legally binding contract involving the obligee, the principal, and a third party—the bond’s guarantor (known as the “surety”). The obligee or other injured party can file a claim against the lottery bond and be compensated for their loss if the surety finds the claim to be valid. The principal is legally obligated to pay all valid claims.
However, the surety has guaranteed claims will be paid and therefore pays a claim initially, to be reimbursed later by the principal. Not reimbursing the surety can result in the surety taking the principal to court to recover the claim amount.
What Does a Lottery Bond Cost?
Vermont lottery bonds are sold for an annual premium that is the product of multiplying the required bond amount and the premium rate that the surety has set for the principal. That premium rate reflects the risk the underwriters believe the surety could be taking in paying claims on behalf of the principal. That risk is measured by the principal’s personal credit score, with a high credit score indicating a low risk and a low credit score a higher risk.
The average lottery bond applicant with good credit will pay a premium rate of one or two percent. Someone with credit that’s not so good will pay a higher premium rate
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Our surety bond professionals will get you the lottery retailer bond in the Vermont state you need at a competitive rate.