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.
