How to Get a Lottery Bond in Washington

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How to Get a Lottery Bond in Washington

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 Washington Lottery Bond needs.

How Do I Get a Lottery Retailer Agents License?

An existing business that wants to sell lottery tickets must apply to have a Washington Lottery endorsement added to its current business license. A new business can apply for a new business license and a Lottery endorsement at the same time.

What Does the Licensing Process Involve?

The Washington Department of Revenue (DOR) website is your starting point for acquiring a new business license or having a lottery endorsement added to an existing business license. It provides links to the forms that you can download and complete for submission to the Washington State Lottery Commission. You can also access licensing documents on the Washington Lottery website.

Two key requirements for becoming a lottery retailer are undergoing a background check and purchasing a Washington lottery bond in the amount of $3,500.

Why Is a Lottery Bond Required?

By purchasing a Washington lottery bond, a lottery retailer guarantees to operate in compliance with all Washington statutes governing lottery operations, including remitting lottery sales proceeds to the state, maintaining funds on hand to pay lottery winnings of less than $600, and not selling lottery tickets to underage individuals. In the event of a violation that causes financial harm to the state or a consumer, the bond provides a way for them to recover such losses up to the $3,500 bond amount.

How Does a Lottery Bond Work?

There are three parties to a Washington lottery bond, which is a legally binding contract among them. In surety bond lingo, the Washington Lottery Commission is the “obligee” requiring the bond, the lottery retailer is the “principal,” and the party guaranteeing the payment of claims is the “surety.” 

The principal bears the full legal obligation to pay valid claims against the bond, but the surety has guaranteed payment. Therefore, the surety will pay a valid claim initially, but the principal must then repay the surety. The terms of the bond indemnify the surety against any actual liability for claims, which means the surety can take legal action against the principal if necessary to recover the funds if the principal fails to reimburse the surety for claims paid on the principal’s behalf.

What Does a Lottery Bond Cost? 

Washington lottery bonds are subject to underwriting to determine the premium rate the principal will pay. That determination is made based on the principal’s personal credit score, which is the accepted measure of the risk of the principal not reimbursing the surety as required. A high credit score suggests a low-risk level, which earns the principal a low premium rate, perhaps around one or two percent. The reverse applies as well: a low credit score is a red flag for a high-risk level, which warrants a higher premium rate.

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