How to Get a Lottery Retailer License in Mississippi

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 Mississippi. 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?

The Mississippi Lottery Corporation (MLC) issues lottery retailer licenses to individuals who meet the eligibility and approval requirements.

 

What Are the Steps in the Licensing Process?

You must complete and sign all the forms included in the Mississippi lottery retailer application packet, along with payment of the $80 application fee.

Your signature authorizes MLC to conduct a credit check, criminal records check, and tax liability check. The Lottery Retailer Contract included in the packet will be signed by MLC and returned to you upon approval of your license application.

When you return your completed application packet, you must include a Mississippi lottery bond for $8,000 per location.

Why Is a Surety Bond Required?

A lottery bond provides financial protection for MLC and the public against monetary losses caused by a licensed lottery retailer’s violation of state law, MLC regulations, or the Lottery Retailer Contract. The lottery bond guarantees that funds will be available to compensate any injured party who files a valid claim against the bond (up to the $8,000 bond amount).

How Do They Work?

There are three parties to a Mississippi lottery bond:

  • MLC is the obligee requiring the bond
  • The lottery retailer is the principal purchasing the bond
  • The bond’s guarantor is the surety

The bond is legally binding on all three parties.

The surety will investigate every claim received to make sure it is legitimate. While the principal is legally obligated to pay all valid claims, the surety, in the capacity as guarantor, has agreed to extend credit to the principal to cover a claim, if necessary.

In practice, the surety will pay a valid claim initially and then be repaid by the principal. Failing to repay the surety can result in the surety suing to recover the claim amount, plus any court costs and legal fees.

What Do They Cost?

The premium cost for a Mississippi lottery bond is the product of multiplying the $8,000 bond amount by the premium rate the surety assigns to each principal through underwriting. The underwriters assess each applicant in terms of the risk to the surety—namely, the risk of the surety not being repaid for claims paid on the principal’s behalf. That assessment relies heavily on the applicant’s personal credit score.

With a high credit score, an applicant is assumed to present little risk to the surety. Consequently, the surety will assign a low premium rate (generally in the 1% to 2% range). Conversely, an applicant with poor credit is considered to be a greater risk and will be assigned a higher interest 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 Mississippi. 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

MISSISSIPPI LOTTERY BOND QUOTE

Who Licenses Lottery Retailers?

The Mississippi Lottery Corporation (MLC) issues lottery retailer licenses to individuals who meet the eligibility and approval requirements.

 

You must complete and sign all the forms included in the Mississippi lottery retailer application packet, along with payment of the $80 application fee.

Your signature authorizes MLC to conduct a credit check, criminal records check, and tax liability check. The Lottery Retailer Contract included in the packet will be signed by MLC and returned to you upon approval of your license application.

When you return your completed application packet, you must include a Mississippi lottery bond for $8,000 per location.

A lottery bond provides financial protection for MLC and the public against monetary losses caused by a licensed lottery retailer’s violation of state law, MLC regulations, or the Lottery Retailer Contract. The lottery bond guarantees that funds will be available to compensate any injured party who files a valid claim against the bond (up to the $8,000 bond amount).

There are three parties to a Mississippi lottery bond:

  • MLC is the obligee requiring the bond
  • The lottery retailer is the principal purchasing the bond
  • The bond’s guarantor is the surety

The bond is legally binding on all three parties.

The surety will investigate every claim received to make sure it is legitimate. While the principal is legally obligated to pay all valid claims, the surety, in the capacity as guarantor, has agreed to extend credit to the principal to cover a claim, if necessary.

In practice, the surety will pay a valid claim initially and then be repaid by the principal. Failing to repay the surety can result in the surety suing to recover the claim amount, plus any court costs and legal fees.

 

The premium cost for a Mississippi lottery bond is the product of multiplying the $8,000 bond amount by the premium rate the surety assigns to each principal through underwriting. The underwriters assess each applicant in terms of the risk to the surety—namely, the risk of the surety not being repaid for claims paid on the principal’s behalf. That assessment relies heavily on the applicant’s personal credit score.

With a high credit score, an applicant is assumed to present little risk to the surety. Consequently, the surety will assign a low premium rate (generally in the 1% to 2% range). Conversely, an applicant with poor credit is considered to be a greater risk and will be assigned a higher interest rate.

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