How to Become a Lottery Retailer in West Virginia

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 West Virginia. 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

FREE LOTTERY BOND QUOTE

Who Licenses Lottery Retailers?

To become a traditional lottery retailer or Limited Video Lottery retailer in West Virginia, you must first obtain a license from the West Virginia Lottery Commission (WVLC).

 

What Are the Steps in the Licensing Process?

You can get evaluated as a potential lottery retailer by filling out the contact form on the West Virginia Lottery website. A Lottery Licensing Specialist will contact you within 10 business days. This is the best option if you are interested in becoming a Limited Video Lottery retailer.

If you are interested in applying to become licensed as a traditional lottery retailer, you can download the application and instructions for completing it.

When you sign the application, you consent to the background checks that will be conducted during the review of your suitability to serve as a lottery retailer in West Virginia. These include fingerprinting, a criminal records check, tax liability check, credit check, and review of certain financial records. If you fall short of the financial responsibility standards required by the West Virginia Lottery, you may have to furnish a lottery surety bond as a condition of licensing. WVLC (the “obligee” requiring the bond) will determine the amount of the bond.

Why Is a Surety Bond Required?

Although WVLC maintains a blanket surety bond covering all lottery retailers in the state, certain licensees may be required to provide an individual surety bond to, according to WVLC regulations, “ensure the performance of the agent’s duties and responsibilities as a licensed lottery agent or the indemnification of the Commission. A lottery agent bond provides financial protection for the state by requiring a licensed lottery retailer (the bond’s “principal”) to operate in compliance with state law and WVLC regulations.

In the event of a violation, such as misappropriation of lottery funds, WVLC can file a claim against the bond to recover the funds.

How Do They Work?

A lottery bond joins three parties together in a legally binding contract: the obligee, the principal, and the bond’s guarantor (the “surety”), each with their own role and responsibilities.

The obligee establishes the required bond amount. The principal is legally obligated to pay all valid claims. And the surety guarantees the payment of claims by agreeing to lend the principal money for that purpose if necessary.

When a claim is submitted, the surety will investigate to make sure it’s legitimate. If it is, the usual practice is for the surety to pay it initially, and then be repaid by the surety for the resulting debt. Failing to repay the surety can result in the surety suing the principal to recover the debt.

What Do They Cost?

Lottery bonds are sold for an annual premium that is a small percentage of the required bond amount. That percentage, the premium rate, is established by the surety based on an underwriting assessment of the risk involved. The biggest risk to the surety is not being repaid for claims paid on behalf of the principal.

The underwriters review the principal’s financial situation, leaning heavily on the principal’s personal credit score as a measure of risk. Someone with a high credit score has demonstrated financial responsibility in the past and represents a low risk to the surety, which results in a premium rate of 1% or less. Someone with poor credit is a greater risk to the surety and will pay 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 West Virginia. 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

WEST VIRGINIA LOTTERY BOND QUOTE

Who Licenses Lottery Retailers?

To become a traditional lottery retailer or Limited Video Lottery retailer in West Virginia, you must first obtain a license from the West Virginia Lottery Commission (WVLC).

You can get evaluated as a potential lottery retailer by filling out the contact form on the West Virginia Lottery website. A Lottery Licensing Specialist will contact you within 10 business days. This is the best option if you are interested in becoming a Limited Video Lottery retailer.

If you are interested in applying to become licensed as a traditional lottery retailer, you can download the application and instructions for completing it.

When you sign the application, you consent to the background checks that will be conducted during the review of your suitability to serve as a lottery retailer in West Virginia. These include fingerprinting, a criminal records check, tax liability check, credit check, and review of certain financial records. If you fall short of the financial responsibility standards required by the West Virginia Lottery, you may have to furnish a lottery surety bond as a condition of licensing. WVLC (the “obligee” requiring the bond) will determine the amount of the bond.

Although WVLC maintains a blanket surety bond covering all lottery retailers in the state, certain licensees may be required to provide an individual surety bond to, according to WVLC regulations, “ensure the performance of the agent’s duties and responsibilities as a licensed lottery agent or the indemnification of the Commission. A lottery agent bond provides financial protection for the state by requiring a licensed lottery retailer (the bond’s “principal”) to operate in compliance with state law and WVLC regulations.

In the event of a violation, such as misappropriation of lottery funds, WVLC can file a claim against the bond to recover the funds.

A lottery bond joins three parties together in a legally binding contract: the obligee, the principal, and the bond’s guarantor (the “surety”), each with their own role and responsibilities.

The obligee establishes the required bond amount. The principal is legally obligated to pay all valid claims. And the surety guarantees the payment of claims by agreeing to lend the principal money for that purpose if necessary.

When a claim is submitted, the surety will investigate to make sure it’s legitimate. If it is, the usual practice is for the surety to pay it initially, and then be repaid by the surety for the resulting debt. Failing to repay the surety can result in the surety suing the principal to recover the debt.

 

Lottery bonds are sold for an annual premium that is a small percentage of the required bond amount. That percentage, the premium rate, is established by the surety based on an underwriting assessment of the risk involved. The biggest risk to the surety is not being repaid for claims paid on behalf of the principal.

The underwriters review the principal’s financial situation, leaning heavily on the principal’s personal credit score as a measure of risk. Someone with a high credit score has demonstrated financial responsibility in the past and represents a low risk to the surety, which results in a premium rate of 1% or less. Someone with poor credit is a greater risk to the surety and will pay a higher premium rate.

REQUEST A QUOTE

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