How to Get a Lottery Retailer License in Maine

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 Maine. 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?

To become one of the more than 1300 retailers authorized to sell lottery tickets in Maine, you will need to obtain a license from the Maine State Lottery (MSL), which operates under the auspices of the Bureau of Alcoholic Beverages and Lottery Operations.

What Are the Steps in the Licensing Process?

Simply access the application packet from the Maine Lottery website and complete it in its entirety—either online or by downloading and printing it and filling it out by hand. Submit the completed packet to MSL at the address provided in the application, along with all required supporting documents. Your signature on the application is your authorization for the financial and criminal records checks that will be performed during the review of your application.

The Maine Lottery Commission has the option of requiring a surety bond from applicants who do not meet the state’s financial responsibility standards. If this applies to you, you will be notified of the required bond amount.

Why Is a Surety Bond Required?

A surety bond may be required if the Lottery Commission believes there is a risk of an applicant or current retailer violating the terms of the Retailer Contract and causing a monetary loss to the state of Maine. Common violations include not remitting the proceeds of lottery ticket sales to MSL or misappropriation of lottery funds.

A lottery bond helps prevent such incidents by making full compliance with all lottery laws and regulations the legal obligation of the lottery retailer (the bond’s “principal”). The bond also provides a way for MSL (the “obligee” requiring the bond) or other injured party to be compensated for damages by filing a claim against the principal’s bond.

How Do They Work?

When you purchase a Maine lottery bond, you, as the principal, enter into a legally binding contract with the obligee and a third party—the bond’s guarantor, known as the “surety.” The surety guarantees the payment of all valid claims by agreeing to lend you the money, if necessary, to cover the claim, but the legal obligation to pay legal claims belongs exclusively to the principal.

The usual practice is for the surety to pay the claim initially, and then be repaid for that debt. If you were to fail to repay the surety, the surety can take legal action to recover the claim amount, plus court costs and legal fees.

What Do They Cost?

The premium rate for a Maine lottery bond is determined by the surety through an underwriting assessment of the risk of the principal incurring claims and not repaying the surety for paying them on the principal’s behalf. The premium rate determination is based largely on the principal’s personal credit score, which is a good measure of that risk.

A high credit score suggests that the risk to the surety is low, as the principal has exhibited financial responsibility in the past. A low risk level results in a low premium rate—potentially 1% or even a little lower. However, someone with a lower credit score poses greater risk to the surety and will be assigned 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 Maine. 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

MAINE LOTTERY BOND QUOTE

Who Licenses Lottery Retailers?

To become one of the more than 1300 retailers authorized to sell lottery tickets in Maine, you will need to obtain a license from the Maine State Lottery (MSL), which operates under the auspices of the Bureau of Alcoholic Beverages and Lottery Operations.

Simply access the application packet from the Maine Lottery website and complete it in its entirety—either online or by downloading and printing it and filling it out by hand. Submit the completed packet to MSL at the address provided in the application, along with all required supporting documents. Your signature on the application is your authorization for the financial and criminal records checks that will be performed during the review of your application.

The Maine Lottery Commission has the option of requiring a surety bond from applicants who do not meet the state’s financial responsibility standards. If this applies to you, you will be notified of the required bond amount.

A surety bond may be required if the Lottery Commission believes there is a risk of an applicant or current retailer violating the terms of the Retailer Contract and causing a monetary loss to the state of Maine. Common violations include not remitting the proceeds of lottery ticket sales to MSL or misappropriation of lottery funds.

A lottery bond helps prevent such incidents by making full compliance with all lottery laws and regulations the legal obligation of the lottery retailer (the bond’s “principal”). The bond also provides a way for MSL (the “obligee” requiring the bond) or other injured party to be compensated for damages by filing a claim against the principal’s bond.

When you purchase a Maine lottery bond, you, as the principal, enter into a legally binding contract with the obligee and a third party—the bond’s guarantor, known as the “surety.” The surety guarantees the payment of all valid claims by agreeing to lend you the money, if necessary, to cover the claim, but the legal obligation to pay legal claims belongs exclusively to the principal.

The usual practice is for the surety to pay the claim initially, and then be repaid for that debt. If you were to fail to repay the surety, the surety can take legal action to recover the claim amount, plus court costs and legal fees.

 

The premium rate for a Maine lottery bond is determined by the surety through an underwriting assessment of the risk of the principal incurring claims and not repaying the surety for paying them on the principal’s behalf. The premium rate determination is based largely on the principal’s personal credit score, which is a good measure of that risk.

A high credit score suggests that the risk to the surety is low, as the principal has exhibited financial responsibility in the past. A low risk level results in a low premium rate—potentially 1% or even a little lower. However, someone with a lower credit score poses greater risk to the surety and will be assigned a higher premium rate.

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Request a quote online or call today to speak with one of our surety bond experts about obtaining a Maine lottery bond.