How to Get a Lottery Retailer License in Massachusetts

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 Massachusetts. 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?

Retailers who want to sell lottery tickets, in addition to their usual products, must obtain a lottery retailer license from the Massachusetts State Lottery Commission (MSLC).

What Are the Steps in the Licensing Process?

The first step toward obtaining a lottery retailer license is to create an application account in the Massachusetts State Lottery Licensing portal. Then simply follow the instructions provided for completing and submitting the online application. Your submission of the completed application authorizes MSLC to initiate a criminal records check, obtain your credit history, and make sure you don’t owe overdue taxes or have any unsatisfied court judgments against you.

If you don’t meet the applicable financial responsibility standards, MSLC may require you to furnish a surety bond in an amount that will be determined by MSLC’s Director.

Why Is a Surety Bond Required?

The surety bond provides financial protection for MSLC (the “obligee” requiring the bond) and the public. It does this in two ways:

  • Preventively, by obligating the lottery retailer (the bond’s “principal”) to comply with all applicable regulations and the terms of the Lottery Sales Agent Agreement), and
  • By obligating the principal to compensate the obligee or other injured party for monetary losses caused by the principal’s noncompliance.

Misappropriation of the proceeds from lottery ticket sales and commingling lottery funds with other funds received in the normal course of the principal’s retail business are both among the more common violations.

How Do They Work?

There is a third party to the surety bond agreement for a Massachusetts lottery bond—the bond’s surety—the party guaranteeing the payment of claims by the principal. This guarantee actually is an agreement to lend the principal the funds needed to pay a valid claim against the bond.

The usual practice, unless the principal can pay a claim immediately without borrowing from the surety, is for the surety to pay the claim initially on behalf of the principal and then be repaid for that debt. A principal who fails to repay the surety may be subject to legal action by the surety to recover the funds.

What Do They Cost?

The annual premium cost of a Massachusetts lottery bond is a small percentage of the required bond amount. That percentage is the premium rate, which is set by the surety based on an underwriting assessment of the principal’s bond application.  That assessment focuses on the risk of the principal incurring claims and not repaying the surety for paying claims on the principal’s behalf.

The most significant factor is the principal’s personal credit score, which is a reflection of how responsibly the principal has handled credit in the past. A high credit score indicates a low level of risk to the surety, which deserves a low premium rate. A low credit score, on the other hand, suggests a higher risk level and warrants 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 Massachusetts. 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

MASSACHUSETTS LOTTERY BOND QUOTE

Who Licenses Lottery Retailers?

Retailers who want to sell lottery tickets, in addition to their usual products, must obtain a lottery retailer license from the Massachusetts State Lottery Commission (MSLC).

The first step toward obtaining a lottery retailer license is to create an application account in the Massachusetts State Lottery Licensing portal. Then simply follow the instructions provided for completing and submitting the online application. Your submission of the completed application authorizes MSLC to initiate a criminal records check, obtain your credit history, and make sure you don’t owe overdue taxes or have any unsatisfied court judgments against you.

If you don’t meet the applicable financial responsibility standards, MSLC may require you to furnish a surety bond in an amount that will be determined by MSLC’s Director.

The surety bond provides financial protection for MSLC (the “obligee” requiring the bond) and the public. It does this in two ways:

  • Preventively, by obligating the lottery retailer (the bond’s “principal”) to comply with all applicable regulations and the terms of the Lottery Sales Agent Agreement), and
  • By obligating the principal to compensate the obligee or other injured party for monetary losses caused by the principal’s noncompliance.

Misappropriation of the proceeds from lottery ticket sales and commingling lottery funds with other funds received in the normal course of the principal’s retail business are both among the more common violations.

The surety bond provides financial protection for MSLC (the “obligee” requiring the bond) and the public. It does this in two ways:

  • Preventively, by obligating the lottery retailer (the bond’s “principal”) to comply with all applicable regulations and the terms of the Lottery Sales Agent Agreement), and
  • By obligating the principal to compensate the obligee or other injured party for monetary losses caused by the principal’s noncompliance.

Misappropriation of the proceeds from lottery ticket sales and commingling lottery funds with other funds received in the normal course of the principal’s retail business are both among the more common violations.

 

The annual premium cost of a Massachusetts lottery bond is a small percentage of the required bond amount. That percentage is the premium rate, which is set by the surety based on an underwriting assessment of the principal’s bond application.  That assessment focuses on the risk of the principal incurring claims and not repaying the surety for paying claims on the principal’s behalf.

The most significant factor is the principal’s personal credit score, which is a reflection of how responsibly the principal has handled credit in the past. A high credit score indicates a low level of risk to the surety, which deserves a low premium rate. A low credit score, on the other hand, suggests a higher risk level and warrants a higher premium rate.

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