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.
