How to Get a Lottery Retailer License in Washington

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 Washington. 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?

Technically, the state of Washington does not issue lottery retailer licenses. Instead, a lottery endorsement is added to a retailer’s business license. New retailers can apply for a business license and a lottery endorsement at one time.

What Are the Steps in the Licensing Process?

You can apply online for a new business license from the Department of Revenue (DOR). While on the DOR website, use the links provided to access the forms you’ll need to submit to obtain a lottery endorsement.

If you have an existing business license, you can use the same links to request a lottery endorsement, or you can request one using the forms found on the Washington Lottery website.

In either case, your application for a lottery endorsement requires you to undergo a background check and purchase a $3,500 Washington lottery bond.

Why Is a Surety Bond Required?

A Washington lottery bond serves as a pledge by the retailer (the bond’s principal) to operate in compliance with all Washington statutes governing the lottery. In most cases, that is sufficient to ensure the principal’s lawful and ethical conduct. But when the principal’s noncompliance causes financial harm to the Washington Lottery (the bond’s obligee) or the public, the injured party can file a claim for damages.

Thus, a Washington Lottery bond provides financial protection for the Lottery and the public through this combination of deterrence and compensation.

How Do They Work?

A Washington lottery bond is legally binding on all three parties to it: the obligee, the principal, and the bond’s guarantor, known as the surety. The bond legally obligates the surety to pay all valid claims and indemnifies the surety against any responsibility for them. However, the surety has guaranteed that the principal will pay them.

Because of that guarantee, the surety will pay a valid claim initially, but only as an extension of credit to the principal. The surety must subsequently repay that debt. If the debt is not repaid, the surety can sue the principal to recover the claim amount, plus court costs and legal fees.

What Do They Cost?

The annual premium for a Washington lottery bond is calculated by multiplying the bond’s $3,500 face amount by the premium rate the surety assigns through underwriting. The premium rate will reflect the underwriters’ evaluation of the risk to the surety—specifically, the risk of not being repaid for claims paid on the principal’s behalf.

The primary measure of that risk is the principal’s creditworthiness. A high personal credit score suggests a low-risk level and is rewarded with a low premium rate. A less creditworthy individual poses a greater risk and will pay a higher premium rate.

In most cases, a well-qualified principal will pay a premium rate of 3% or less.

 

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 Washington. 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

WASHINGTON LOTTERY BOND QUOTE

Who Licenses Lottery Retailers?

Technically, the state of Washington does not issue lottery retailer licenses. Instead, a lottery endorsement is added to a retailer’s business license. New retailers can apply for a business license and a lottery endorsement at one time.

You can apply online for a new business license from the Department of Revenue (DOR). While on the DOR website, use the links provided to access the forms you’ll need to submit to obtain a lottery endorsement.

If you have an existing business license, you can use the same links to request a lottery endorsement, or you can request one using the forms found on the Washington Lottery website.

In either case, your application for a lottery endorsement requires you to undergo a background check and purchase a $3,500 Washington lottery bond.

A Washington lottery bond serves as a pledge by the retailer (the bond’s principal) to operate in compliance with all Washington statutes governing the lottery. In most cases, that is sufficient to ensure the principal’s lawful and ethical conduct. But when the principal’s noncompliance causes financial harm to the Washington Lottery (the bond’s obligee) or the public, the injured party can file a claim for damages.

Thus, a Washington Lottery bond provides financial protection for the Lottery and the public through this combination of deterrence and compensation.

A Washington lottery bond serves as a pledge by the retailer (the bond’s principal) to operate in compliance with all Washington statutes governing the lottery. In most cases, that is sufficient to ensure the principal’s lawful and ethical conduct. But when the principal’s noncompliance causes financial harm to the Washington Lottery (the bond’s obligee) or the public, the injured party can file a claim for damages.

Thus, a Washington Lottery bond provides financial protection for the Lottery and the public through this combination of deterrence and compensation.

 

A Washington lottery bond serves as a pledge by the retailer (the bond’s principal) to operate in compliance with all Washington statutes governing the lottery. In most cases, that is sufficient to ensure the principal’s lawful and ethical conduct. But when the principal’s noncompliance causes financial harm to the Washington Lottery (the bond’s obligee) or the public, the injured party can file a claim for damages.

Thus, a Washington Lottery bond provides financial protection for the Lottery and the public through this combination of deterrence and compensation.

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