The Tennessee Education Lottery Implementation Law authorizes individuals and businesses to become lottery retailers. A Tennessee lottery retailer surety bond "may" be required by the Tennessee Lottery Corporation (TEL) based on its opinion of a license candidate's credit standing. Per Chapter 2 of the prevailing statute, "An applicant or any owner/partner holding more than ten percent (10%) of ownership interest must either meets an acceptable level of creditworthiness as assessed through an independent credit agency or in the TEL's sole discretion, based upon the current or prior payment history with the TEL; or provides a financial security deposit or other credit enhancement acceptable to the TEL. A Tennessee lottery retailer bond is acceptable "financial security". Per the wording of the state's rules, the surety bond is clearly subject to adverse selection.
The Tennessee lottery bond is a statutory compliance and financial guarantee. The obligation states that the seller will, "make payment of all sums due the Obligee (TEL) for lottery tickets and proceeds and comply with all statutes, rules, and regulations pertaining to said authorization". The bond amount is set by the lottery authority at its discretion. Questions and submissions may be directed to:
Tennessee Education Lottery
P. O. Box 291869
Nashville, TN 37229-1869
Tennessee surety bond leader, Surety One, Inc. is a specialist in the bonding needs of commercial establishments that sell lotto tickets, scratch-offs, bingo cards and multi-tickets. We offer same-day issue of surety and fidelity bonds required by gaming operations. Questions about this or another surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat about your Tennessee lottery retailer bond requirement.
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