Section 1770.100 Bonding of Agents

Section 1770

Section 1770.100  Bonding of

Agents

The Department may require a

surety bond, letter of credit, or security deposit in the form of a cashier's

check or money order from any Agent, at the Agent's expense, to avoid any

monetary loss to the State because of the Agent's activities in the sale of Lottery

game tickets.  The surety bond, letter of credit or security deposit shall not

exceed twice the average lottery ticket sales of the retailer for the period

within which the Agent is required to remit lottery funds to the Department.

For the first 90 days of sales of a new lottery retailer, the amount of the

bond may not exceed twice the average estimated lottery ticket sales for the

period within which the Agent is required to remit lottery funds to the

Department. Most lottery bonds range between $5,000 and $15,000. Standard

market rates range between 1%-4% of the total amount or otherwise between $100

and $400.  The Department may require a financial statement revealing the

financial condition of any person or organization seeking to become, or

continue as, an Agent.