How to Get a Lottery Retailer License in Michigan

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 Michigan. 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?

Michigan’s Bureau of State Lottery licenses lottery retailers to sell lottery tickets.

What Are the Steps in the Licensing Process?

Simply download the application for a Michigan lottery retailer license, complete it in its entirety, and submit it, along with payment of the nonrefundable $150 application fee. Alternatively, you may pay the fee online.

When you sign the application, you give the Michigan Lottery permission to conduct background checks—credit history, criminal records, and any tax liabilities.

Applicants who don’t meet the Bureau’s financial responsibility standards may be required to purchase a surety bond. The bond amount will be determined by the Bureau (the “obligee” requiring the bond).

Why Is a Surety Bond Required?

A Michigan lottery bond is a legally binding contract that requires a lottery retailer (the bond’s “principal”) to conduct lottery business in complete compliance with applicable state laws and lottery regulations and the terms of the surety bond agreement. The intent is to prevent the principal from committing unlawful or unethical acts that can cause financial harm to the obligee and/or the public.

If financially harmed by the principal’s actions (such as misappropriating lottery sales proceeds or failing to remit sales proceeds to the state), the injured party has the right to file a claim and be compensated for damages.

How Do They Work?

A Michigan lottery bond forms a legally binding contract among three parties: the obligee, the principal, and the bond’s guarantor (the “surety”). The principal is legally obligated to pay all claims that the surety finds valid. However, the surety, in guaranteeing the bond, has agreed to extend credit to the principal if the principal doesn’t have the funds on hand to pay a claim.

Normal practice is for the principal to pay a valid claim initially, which creates a debt that the principal must repay to the surety. Failure to repay that debt may result in the principal being sued by the surety to recover the funds.

What Do They Cost?

The annual premium for a Michigan lottery bond is calculated by multiplying two factors: the bond amount required by the obligee and the premium rate, which is set by the surety through an underwriting process. The underwriters rely heavily on the principal’s personal credit score to assess the risk to the surety—specifically, the risk of not being repaid for claims paid on the principal’s behalf.

A high credit score is correlated with low risk, which typically results in a low premium rate. Conversely, a low credit score suggests a higher risk level and results in 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 Michigan. 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

MICHIGAN LOTTERY BOND QUOTE

Who Licenses Lottery Retailers?

Michigan’s Bureau of State Lottery licenses lottery retailers to sell lottery tickets.

Simply download the application for a Michigan lottery retailer license, complete it in its entirety, and submit it, along with payment of the nonrefundable $150 application fee. Alternatively, you may pay the fee online.

When you sign the application, you give the Michigan Lottery permission to conduct background checks—credit history, criminal records, and any tax liabilities.

Applicants who don’t meet the Bureau’s financial responsibility standards may be required to purchase a surety bond. The bond amount will be determined by the Bureau (the “obligee” requiring the bond).

A Michigan lottery bond is a legally binding contract that requires a lottery retailer (the bond’s “principal”) to conduct lottery business in complete compliance with applicable state laws and lottery regulations and the terms of the surety bond agreement. The intent is to prevent the principal from committing unlawful or unethical acts that can cause financial harm to the obligee and/or the public.

If financially harmed by the principal’s actions (such as misappropriating lottery sales proceeds or failing to remit sales proceeds to the state), the injured party has the right to file a claim and be compensated for damages.

A Michigan lottery bond forms a legally binding contract among three parties: the obligee, the principal, and the bond’s guarantor (the “surety”). The principal is legally obligated to pay all claims that the surety finds valid. However, the surety, in guaranteeing the bond, has agreed to extend credit to the principal if the principal doesn’t have the funds on hand to pay a claim.

Normal practice is for the principal to pay a valid claim initially, which creates a debt that the principal must repay to the surety. Failure to repay that debt may result in the principal being sued by the surety to recover the funds.

 

A Michigan lottery bond forms a legally binding contract among three parties: the obligee, the principal, and the bond’s guarantor (the “surety”). The principal is legally obligated to pay all claims that the surety finds valid. However, the surety, in guaranteeing the bond, has agreed to extend credit to the principal if the principal doesn’t have the funds on hand to pay a claim.

Normal practice is for the principal to pay a valid claim initially, which creates a debt that the principal must repay to the surety. Failure to repay that debt may result in the principal being sued by the surety to recover the funds.

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