How to Become a Lottery Retailer in South Carolina

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about lottery retailer licensing in South Carolina. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

 

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Who Licenses Lottery Retailers?

Anyone wishing to sell lottery tickets in a retail establishment must first obtain a license from the South Carolina Education Lottery (SCEL).

 

What Are the Steps in the Licensing Process?

You can download an individual license packet and the instructions for completing it from the SCEL website. There is a separate application packet for corporations. Returning a fully completed and signed application to SCEL authorizes SCEL to conduct certain background checks to ensure the applicant’s suitability to serve as a lottery retailer. These include checks into the applicant’s criminal records (if any), tax liabilities, finances, and credit history. If there are any doubts about an applicant’s level of financial responsibility and stability, SCEL’s Executive Director may require a surety bond or other form of security in an amount to be determined on a case-by-case basis.

Why Is a Surety Bond Required?

According to South Carolina’s lottery statutes, an applicant for licensure may be required to furnish a bond “in an amount determined by the Executive Director consistent with the financial stability of the retailer, to avoid monetary loss to the state because of the activities of a lottery retailer.”

A lottery agent bond provides financial protection for SCEL (the “obligee” requiring the bond) by obligating the retailer (known as the bond’s “principal”) to operate in compliance with all applicable state laws and lottery regulations when conducting lottery business. When there is a violation that causes the state financial harm, the retailer’s lottery bond provides a way for SCEL to recover monetary damages.

How Do They Work?

A South Carolina lottery bond is a legally binding contract among the obligee, the principal, and a third party—the bond’s guarantor (the “surety”). The terms of the bond legally obligate the principal to pay all valid claims, but the surety guarantees their payment by agreeing to lend the principal funds to pay a claim, if necessary.

Upon receipt of a claim, the surety will investigate to ascertain its validity, and then will make payment directly to SCEL, the claimant. But that payment is not a gift to the principal, but rather a loan, and the principal is legally obligated to repay the debt to the surety. Failing to repay that debt can result in the surety suing the principal to recover the claim amount.

What Do They Cost?

South Carolina lottery bonds go through an underwriting assessment to determine whether to approve the bond and establish the premium rate the principal will pay. The underwriters’ main concern is the risk of the principal failing to repay the surety for claims paid on the principal’s behalf. The primary measure of that risk is the principal’s personal credit score.

Someone with a high credit score has proven to be financially responsible and represents a low risk to the surety, which can result in a premium rate of 1% or even less. On the other hand, someone with past credit problems is a higher risk to the surety and will pay a higher premium rate.

 

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about lottery retailer licensing in South Carolina. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

 

CONTACT US FOR A

SOUTH CAROLINA LOTTERY BOND QUOTE

Who Licenses Lottery Retailers?

Anyone wishing to sell lottery tickets in a retail establishment must first obtain a license from the South Carolina Education Lottery (SCEL).

 

You can download an individual license packet and the instructions for completing it from the SCEL website. There is a separate application packet for corporations. Returning a fully completed and signed application to SCEL authorizes SCEL to conduct certain background checks to ensure the applicant’s suitability to serve as a lottery retailer. These include checks into the applicant’s criminal records (if any), tax liabilities, finances, and credit history. If there are any doubts about an applicant’s level of financial responsibility and stability, SCEL’s Executive Director may require a surety bond or other form of security in an amount to be determined on a case-by-case basis.

 

According to South Carolina’s lottery statutes, an applicant for licensure may be required to furnish a bond “in an amount determined by the Executive Director consistent with the financial stability of the retailer, to avoid monetary loss to the state because of the activities of a lottery retailer.”

A lottery agent bond provides financial protection for SCEL (the “obligee” requiring the bond) by obligating the retailer (known as the bond’s “principal”) to operate in compliance with all applicable state laws and lottery regulations when conducting lottery business. When there is a violation that causes the state financial harm, the retailer’s lottery bond provides a way for SCEL to recover monetary damages.

A South Carolina lottery bond is a legally binding contract among the obligee, the principal, and a third party—the bond’s guarantor (the “surety”). The terms of the bond legally obligate the principal to pay all valid claims, but the surety guarantees their payment by agreeing to lend the principal funds to pay a claim, if necessary.

Upon receipt of a claim, the surety will investigate to ascertain its validity, and then will make payment directly to SCEL, the claimant. But that payment is not a gift to the principal, but rather a loan, and the principal is legally obligated to repay the debt to the surety. Failing to repay that debt can result in the surety suing the principal to recover the claim amount.

 

A South Carolina lottery bond is a legally binding contract among the obligee, the principal, and a third party—the bond’s guarantor (the “surety”). The terms of the bond legally obligate the principal to pay all valid claims, but the surety guarantees their payment by agreeing to lend the principal funds to pay a claim, if necessary.

Upon receipt of a claim, the surety will investigate to ascertain its validity, and then will make payment directly to SCEL, the claimant. But that payment is not a gift to the principal, but rather a loan, and the principal is legally obligated to repay the debt to the surety. Failing to repay that debt can result in the surety suing the principal to recover the claim amount.

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