Lottery Bond

Lottery bonds are required for individuals or businesses that sell lottery tickets and/or use lottery equipment for commercial purposes. These bonds are primarily used to protect a state in the event that a lottery seller mishandles lottery funds or tampers with lottery equipment. In addition, these bonds also protect the users by ensuring that the lottery handlers adhere to industry regulations. This makes sure that lottery businesses remain true and fair at all times for everyone.

The amount of return from a given bond is predicated on the outcome of a lottery rather than the performance of an underlying asset. The potential return in this case is usually higher than that of conventional bonds.

The prices of lottery bonds are determined by the state lottery. There are not any different types of lottery bonds, but each state requires different bond amounts. It is important for those looking to purchase a lottery bond to contact their state office to inquire about requirements beforehand.

Lottery bonds do not protect lottery machines. They are a form of credit to the owner. They should be considered as a form of insurance for public scams or fraud against the state lottery.

Some states will allow businesses to sell lottery tickets without the need for a bond. For this reason, it is also important to make sure to contact your state office to find out if a bond is needed in order to sell lottery tickets.

 


Application for


Current or expiring quote we are looking to beat:


Name of previous surety company writing to the bond:


Section I: Bond Applied for

Type of Bond

Effective Date

Expiration Date


Type of Company

CORP

LLC

DBA

Partnership

Bond Amount


(Obligee)


Obligee Address


Section II: General Information

Applicant's Name

Spouse Name


SS#

Spouse SS#

Home Phone


Residence Address

City

State

Zip


Status of Residency

Own

Rent

At Current Address Since


Date of Birth

Spouse Date of Birth

Business License Number


Business Name


Business Phone

Business Fax

Business Email


Business Address

City

State

Zip


Date Business BEGAN Under Present Individual or Firm Name

Business Tax ID


Has any company refused to issue bonds for any purpose?

Yes

No

Do you have any liens, claims or judgements against you?

Yes

No


Has applicant ever failed in business?

Yes

No

Has applicant filed bankruptcy in the last 10 years?

Yes

No


If yes, Chapter 7?

Yes

No

Chapter 11?

Yes

No

Chapter 13?

Yes

No


Date Filed for Bankruptcy?


Date of Discharge?


If yes to any, please explain:


Section III: Additional Parties

Name

Spouse Name


SS#

Spouse SS#

Home Phone


Home Address

City

State

Zip


Personal Financials

(if more than one owner, each has to fill out this app)

Statement of assets and liabilities as of


Assets Liabilities
Cash in Bank Notes Payable to Banks
Cash on Hand Notes to Others(excl. of equipment)
Stocks and Bonds Accounts Payable
Accounts Receivable Federal and State Income Tax Due
Notes Receivable All Other Taxes
Inventory Accruals, Payrolls, Etc.
Cash Value Life Insurance    
Equipment Due on Equipment
Real Estate Due on Real Estate
Other Assets Other Liabilities
    Surplus and Undivided Profits
    Capital Stock(if a corporation)
       
Total Assets Total Liabilities

Net Worth


Name of Owners

Name and Title of Officers

% of Ownership


Are you an insurance agent?

Yes

No

Agent License #

Agent State

Completion of this form constitutes permission for Cal Society Insurance Services to obtain customer information which will be used to determine bonding eligibility. This information will be held in the strictest confidence.