North Carolina Lottery Bond

North Carolina Lottery Bond

The State of North Carolina Education Lottery (NCEL) requires lottery retailers that have held two failed contractual occurrences to acquire a lottery bond. Jet Insurance Company provides this surety bond to the NCEL for retailers, giving the guarantee needed to continue selling lottery tickets at their business.


At Jet, lottery retailers have the advantage of getting bonded directly with the carrier. There are no unnecessary steps or delays involved in our bonding process. 

How Is The Bond Amount Determined?

The Lottery Commission evaluates the lottery retailer’s current or projected sales of lottery tickets in order to determine the maximum bonding limit, with a minimum bond limit of $2,000. Higher bond amounts will require a deeper analysis of the lottery retailer’s financial standing before an offer can be made by Jet.

The cost of the lottery bond will vary per lottery retailer starting at $100 a year. This bond is credit based and will require a soft credit check of the lottery retailer to determine the price of the bond. For credit challenged retailers collateral may be required in order to become bonded.

Why Is The Lottery Bond Required?

The North Carolina Education Lottery Commission exists to ensure that the lottery operation is maintained with integrity and security. Considering retailers are the main point of distribution, their practices relating to the sale of lottery tickets are under the NCEL’s scrutiny.

As stated on the North Carolina Education Lottery Policies and Procedures Manual, lottery retailers are expected to make payments to the Commission for lottery tickets on a weekly basis through Electronic Transfer Funds (ETF). If two failed instances of the ETF within six months occur, the lottery retailer will be expected to obtain a lottery bond.

The bond provides the necessary reassurance  to the Commission that the lottery retailer will not create any further damages or harm. The lottery retailer may be required to submit a bond within thirty days of their second failed ETF submission. The bond will reinstate the lottery retailers status and eligibility to sell lottery tickets and/or games. 

Jet is here to work closely with the lottery retailer giving their business the guarantee needed to continue selling lottery tickets at their establishment. 

How Does the Application Process Work With Jet?

The application process at Jet is dependent on the bond limit and credit score of the retailer. For lower bond amounts we can execute the bond online after a soft credit check which only takes moments.

For larger bond amounts, Jet may require additional review. We promise to get back to the lottery retailer immediately after our review with an offer. 

Can Jet File the Bond For Me?

Yes, Jet can! Jet will file your bond directly to the North Carolina Education Lottery. A copy of the bond will be made available immediately for the lottery retailer immediately after purchase. The bond form will be sent to the address stated below:

State of North Carolina Education Lottery
2728 Capital Boulevard Suite 144
Raleigh, NC, 27604

Can I Cancel My Bond?

This bond cannot be cancelled once purchased. The bond form submitted to the Lottery Commission must be for a defined term.

Lottery retailers must keep in mind that the bond reinstates their contract with the Commission after they have had a prior history of failed contractual obligations. Removing the bond would mean that the contract with the Commission would dissolve. 

How Do I Renew My Bond?

The process to renew this bond does not require additional paperwork, just payment for the new term.

Jet will send a renewal notification prior to the expiration date of your bond with plenty of time to send in a payment.

How Does a Lottery Retailer Avoid Bond Claims?

Lottery retailers are expected to adhere by the North Carolina State Statute Chapter 18C and their contractual agreements with the Lottery Commission. As outlined in the North Carolina Education Lottery Policies and Procedures Manual, lottery retailers must pay the Commission through their ETF procedure. Should all payment be made in full and on time there will be no issues for the retailer.

The retailer needs to make payments to any winner of a lottery prize that is below $600 per the state statutes, but may limit payouts to $50 based on security reasons. The lottery retailer has the ability to post a sign stating the amount they carry for lottery winnings. 

The lottery retailer should work towards establishing and maintaining proper accounting of the transactions that are made relevant to the sale of lottery tickets. To avoid any issue with the ETF monthly payment, the lottery retailer should keep an accounting of all lottery sales collected, amount paid out to winners and the amount to be retained by the retailer. With those numbers the ETF payment to the Commission will be easy to calculate.

By not making the correct payment amount to the Commission (which led to the surety bond requirement in the first place), retailers can face more severe action from the commission including a claim on the bond and losing the ability to offer lottery tickets.   

What Happens If I Receive a Claim on My Bond?

Should the Commission file a claim on your bond Jet will work towards providing a proper defense. If the evidence from the lottery commission accompanying the claim notice is legitimate, Jet will make a payout on the claim.

Jet will pay out the claim amount up to the bonding limit to the damaged party, which in nearly all cases is the Lottery Commission. Still, it will be the responsibility of the lottery retailer to pay back Jet for any amounts paid to the damaged party. The bond only serves as a guarantee to make payment, not absolve the retailer of negligent or fraudulent behavior.