Georgia Lottery bond

How a Georgia Lottery Bond Works


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A lottery bond is a specific type of surety bond that is required in many different states in order to obtain a license to sell state lottery tickets legally in that specific state. Georgia is just one state that requires a lottery bond. 


Keep reading for more insight into what Georgia lottery bonds are, why they’re required in the state of Georgia, and how to get one. 

What is a Georgia Lottery Bond?

A Georgia lottery bond is a lottery bond (also referred to as a lotto bond or lottery machine bond) that is required by the state of Georgia to operate lottery equipment or sell lottery tickets in that state. In Georgia, the lottery bond amount is $12,000 minimum.


This type of surety bond acts as a guarantee that the holder of the Georgia lottery bond will operate in accordance with state regulations regarding selling lottery tickets, operating lottery equipment, and most importantly handing the funds for the  sale of lottery tickets. Typically each lottery ticket sold the lottery agent retains a small commission and remits the rest of the proceeds to the commission. 


Lottery bonds are designed to protect both the state and consumers from lottery ticket sellers who may be dishonest, mishandle funds, tamper with lottery equipment, skip paying taxes, or generally cause financial harm to their customers.


Similar to other types of surety bonds, lottery bonds involve three different parties:


    • A principal. A business that sells lottery tickets or operates lottery equipment.
    • An obligee. The Lottery Commission who requires the lottery bond.
    • A surety. The guarantor of the lottery bond.

    Lottery bonds are underwritten like any other bond and the surety reviews the applicant's financial stability to determine bonding credit. 


    If you’re unclear about the requirements surrounding a Georgia lottery bond—or lottery bonds required by other states you want to operate in—you can consult the state’s Department of Revenue Lottery Commission, Lottery Corporation, or State Lottery Agency for more information on what you need to operate legally. 


    The Georgia Lottery Corporation will determine if a business needs to purchase a Georgia lottery bond after they review their license application. Factors like the retailer’s credit history, criminal record, and business infractions will help the Georgia Lottery Corporation decide whether or not the retailer needs to take out a lottery bond. 

    How Does a Georgia Lottery Bond Work?

    If a claim is filed against the principal’s lottery bond, then the surety is required to address the claim and to pay out compensation to the party who filed the claim. The principal isn’t off the hook here just because the surety initially pays out the claim. If the claim is found to be valid, the principal must repay the surety in full for the money they pay out to the filer of the claim. 


    When the principal takes on a Georgia lottery bond, they are essentially pledging to comply with all terms of the Georgia Lottery Corporation retailer contract and all rules and regulations established by the Georgia Lottery Commission. 


    A Georgia lottery bond prohibits the following acts:

      • The sale of lottery tickets to anyone under the age of 18

        • Paying a lottery prize to anyone under the age of 18

          • Selling a lottery ticket for more than the formally established retail sales price

            • Selling lottery tickets solely for entertainment

              • Not filing the applicable tax returns to the state of Georgia


              Georgia lottery bonds remain in effect until released by the Georgia Lottery Corporation or canceled by the principal or the surety. The retailer or surety has the option to cancel the bond by giving written notice of cancellation. They can give notice of cancellation by certified mail sent to the Georgia Lottery Commission in Atlanta, Georgia. This must be done no less than 60 days before the effective date of termination.

              How Much Does a Georgia Lottery Bond Cost?

              In the state of Georgia, you have to take out a $12,000 lottery bond. How much it costs to obtain that bond will vary and depends on your personal credit score. Generally, you can expect to spend between 1% to 4% of the total bond amount if you have a strong credit score.

              How to Get a Georgia Lottery Bond

              Not sure where to start when it comes time to apply for a Georgia lottery bond? We’re happy to help! Don't worry if you have been turned down by another company, we have hard to place bond programs that may be a good fit for you.


              Our application process is simple and fast. You can get a free online quote by completing a simple application or by calling 888-518-8011. Our experts will be with you every step of the way and can walk you through the process. 


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              Apply for a Georgia lottery bond today!