The lottery statute pertaining to bonding describes the purpose of a New York lottery bond as being “to avoid monetary loss to the State because of an agent’s activities in the sale of tickets.” Applicants who don’t meet the Lottery’s financial responsibility standards may be required to furnish a lottery bond in an amount to be determined by the Lottery. The bond provides financial protection for the state in the event that a licensed lottery agent violates lottery regulations and causes financial harm to the state, for example by misappropriating lottery funds or not remitting the proceeds from lottery ticket sales. The New York Lottery (the “obligee” requiring the bond) can file a claim against the agent’s bond and be compensated for such a monetary loss.
How to Become a Lottery Retailer in New York
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 New York. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.
It’s easy with our simple 3-step process:
- Apply Online
- Get Quote
- Receive Bond
Who Licenses Lottery Retailers?
To sell lottery tickets in the state of New York, you must obtain a lottery sales agent license from the New York Lottery. Before applying online, you must first register with NY.gov.
Why Is a Surety Bond Required?
How Do They Work?
A New York lottery bond is a legally binding contract involving three parties: the obligee, the “principal” (the lottery agent), and the “surety” (the party guaranteeing the bond). Upon receipt of a claim, the surety will first make sure it’s valid. The principal is legally obligated to pay all valid claims, but the surety has guaranteed that they will be paid. In approving the principal for bonding, the surety has agreed to extending credit to the principal if necessary for the purpose of paying claims.
The surety lives up to its guarantee and expedites the resolution of claims by paying a valid claim on behalf of the principal and giving the principal some time to repay that debt. Not being repaid will result in the surety taking the principal to court to recover the amount owed.
What Are the Steps in the Licensing Process?
Applying online is only the beginning of the licensing process. Submitting the completed application authorizes the New York Lottery to conduct a credit check and state and federal criminal records check. You will also need to be fingerprinted, as explained in the application. (There is a nonrefundable $102 fingerprinting fee.) A New York Lottery representative will contact you after you have submitted your online application and will guide you through the remaining steps in the licensing process. Some applicants may be required to furnish the New York Lottery with a surety bond.
What Do They Cost?
New York lottery bonds are sold for an annual premium that is the product of multiplying the bond amount set by the obligee by the premium rate assigned by the surety on a case-by-case basis. That premium rate will reflect the underwriters’ assessment of the risk that the surety might not be repaid for claims paid on behalf of the principal. The best indicator of that risk is the principal’s personal credit score.
There is an inverse relationship between the credit score and the risk to the surety. A high credit score suggests a low risk level and a low score suggests a high risk. A low risk level results in a low premium rate, perhaps even lower than 1%, while a high risk level warrants a higher rate.
Choose Bond by States
We proudly serve all 50 states, offering a full range of surety bonds. To buy surety bonds online:
- Choose your state
- Choose the bond type you need
- Apply online to request a free quote
There’s no obligation, and we can often help you get bonded in 24 hours or less.
How Do New York Lottery Bonds Work?
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Choose Your Bond Type
Select the bond you need — commercial, contract, or any specialized bond. We help you find exactly what is required in your state.
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Submit a Quick Application
Complete a short online form. It only takes a few minutes, with no extra paperwork or long verification steps.
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Get Approved & Receive Your Bond
Get fast approval and receive your bond instantly by email. Your document is ready to use right away.
Why Work With Us?
Simply fill out our convenient online application form to get started.
We work with a wide range of carriers to provide many options to our clients.
As an independent agency, we can leverage our carrier network to find the most competitive rates for the bonds you need.
We work to get you bonded as quickly as possible, often in 24 hours or less.
Our experienced surety bond agents provide personalized assistance to help you understand your bonding requirements and options.
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Request a Quote
Request an online quote today! Or speak with one of our knowledgeable surety bond agents about the commercial bonds you are interested in.