Understanding Lottery Bonds And Their Importance
If you run a commercial establishment, within Canada, you may be able to benefit immensely by engaging in the lottery. Selling lottery tickets to the public can prove to be very fruitful and will give you the ability to earn even more money from your business. Of course, the Federal Government of Canada requires businesses, which wish to engage in the lottery, to obtain the appropriate lottery bonds. This is a unique type of bond, which helps to protect the public, as well as the local province. Within this guide, you will learn all about lottery bonds.
First and foremost, you should realize that the lottery bond is an agreement between three different parties. As the individual or business, which desires to sell tickets or utilize lottery equipment, you will be labeled as the principal. In this sense, it will be your duty and in your best interest to obtain the bond, so you can begin making money from the lottery.
The lottery commission, which oversees the lottery in your province, will be the obligee. The bond will protect this entity. Finally, you will need to obtain the bond, by making contact with a bonding company. This company will be referred to as the surety. It will be up to the surety to negotiate and analyze complaints made by the obligee against the principal.
Who Is Required To Acquire A Lottery Bond?
Only a small number of individuals will ever need to obtain a lottery bond. In fact, most businesses can easily avoid this requirement, by refusing to sell lottery tickets at their commercial establishment. If you wish to sell lottery tickets at your convenience store or restaurant, you will need to obtain this commercial bond. Remember that the entity, which requires the bond, will depend on your specific province. Within Canada, there are several provincial lottery organizations, including the Western Canada Lottery Corporation, Ontario Lottery and Gaming Corporation, and the British Columbia Lottery Corporation.
Aside from obtaining the lottery bond, you will also need to abide by the rules and regulations set forth by the entity, which oversees your province.
Is There A Difference Between Lotto Bonds and Lottery Machine Bonds?
When attempting to acquire the necessary bond, it is almost certain that you’ll come across several varieties and this may give you concern. You may hear the phrase lotto bond and lottery machine bond. Initially, these two bonds sound different from one another. The truth of the matter is that they’re one in the same. The only difference is the amount of the bond and this tends to vary from location to location.
How Much Will A Lottery Bond Cost?
Remember that the overall cost of the lottery bond will vary depending on the authority, which oversees the lottery, within your province of operations. This means that the costs are never universal and each company will likely be required to pay something different. Once the appropriate lottery authority has set the amount, you will need to go to a bonding agency, which will require you to pay a specific percentage of that amount, in order to obtain the bond.
The percentage you will be required to pay will differ significantly and will be determined by a number of different variables. A handful of financial indictors, including your credit score, financial history and business statements, will all work in conjunction to help the surety determine your premium. If everything sways in your favor, you may only be required to pay 1 to 4% of the finalized amount.
Since the costs can vary substantially, it is absolutely essential to obtain as many quotes as possible. By filling out the associated applications and obtaining numerous quotes, you will be able to find the most favorable lottery bond cost for your business. It is recommended that you begin filling out these applications immediately.
Other Types of Commercial Surety Bonds we provide:
- Auto Dealer Bond – Used in the automobile industry for dealerships.
- Fidelity Bond – Businesses purchase this bond to cover themselves from fraudulent employees.
- Janitorial Bond – Janitorial companies use this bond to protect the client’s interest.
- Utility Bond – Protects Utility companies from defaults from clients.
- Customs Bond – Required by the Federal government of Canada for brokers.
- Medical and Medicaid Bond – Protects patients from fraudulent behavior.
- Union Bond – Obtained by union workers.