Ohio Lottery Sales Retailer Bond
What is an Ohio Lottery Sales Retailer Bond?
The Ohio Lottery Commission requires that most lottery sales retailers furnish a $15,000 surety bond to guarantee compliance with the rules and regulations established by the Commission. The surety bond is for those who have been granted or are in the application process to granted a license in Ohio as a Lottery Sales Retailer. The bond is conditioned upon the bonded principal's compliance with all laws, rules, policies and regulations governing the license.
Why is an Ohio Lottery Sales Retailer Bond Required?
The Ohio Lottery Commission issues tickets on consignment so retailers pay for the tickets after they sell them. The surety bond protects the Lottery Commission by providing a financial guarantee for any monies due from the retail location up to the stated bond amount of $15,000.
Lottery Sales Retailer Bonds And Getting Your Ohio Business License/Registration
The upfront fees to become a lottery retailer are minimal including a small licensing fee which is collected through the first Lottery account sweep. A surety bond is also required or if on premise consumption of alcohol occurs, you will have the option of creating a liability deposit account. Most retailers are required to carry a $15,000 bond, but the Commission may be required to carry a higher bond based on Lottery sales.
The application process with the Lottery Commission typically takes 4 to 6 weeks. You may apply for a Lottery license prior to your business being up and running and the Commission will work with you to have your business prepared for lottery tickets when your business starts. The Ohio Lottery Commission uses an eApplication. To get started with the online application, you will need basic information including legal name of your business, all owners names and email addresses with 10% or more ownership, FID or EIN number (federal tax identification number), and business checking account information.
The application will be forwarded to your local Regional Lottery salesperson who will contact you to schedule an appointment to discuss equipment selections, bonding, lottery policies, training and a criminal background check. If your application is approved, you will receive an email notification with further instructions.