Become A Retailer
The Retailer Application Packet – PDF contains the following 5 forms:
- Arkansas Scholarship Lottery Retailer Application Checklist, page 1
- Arkansas Scholarship Lottery Retailer Application, pages 2 – 6
- Arkansas Lottery Commission EFT form, page 7
- Arkansas Scholarship Lottery Landlord Release Form, page 8
- Arkansas State Police-122 ID Record Check, pages 9
Thank you for your interest in becoming an Arkansas Scholarship Lottery Retailer. The packet above will serve as the first step in possibly obtaining your license.
Retailer Surety Bond
The Arkansas Lottery Commission is pleased to announce that The Bond Exchange has been selected as the vendor for Retailer Surety Bonding. By purchasing your bond from The Bond Exchange you will not only enjoy low prices, guaranteed acceptance, and a fast-track buying experience, but you will also be able to take advantage of an automatic renewal process next year to further expedite the annual compliance requirements.
The selection of the Bond Exchange as the ALC vendor now gives retailers the following bonding/security options under the Arkansas Scholarship Lottery Act:
- A retailer may obtain and maintain a surety bond listing the ALC as Obligee in the amount of ten thousand dollars ($10,000) which may be purchased by a retailer by using the ALC vendor, The Bond Exchange; or
- A retailer may obtain and maintain a surety bond listing the ALC as Obligee in the amount of ten thousand dollars ($10,000) which may be purchased by a retailer from any insurance company licensed to do business in the state of Arkansas; or
- At the discretion of the Director, a retailer may deposit and maintain with the ALC securities that are interest bearing or accruing. The retailer must contact the ALC and request approval from the Director in order to deposit and maintain interest bearing securities. The securities shall be held in trust in the name of the commission. Securities eligible are limited to:
(A) Certificates of deposit in an amount fully insured by the Federal Deposit Insurance Corporation issued by solvent banks or savings associations organized and existing under the laws of this state or under the laws of the United States;
(B) United States Government bonds, notes, and bills for which the full faith and credit of the United States Government is pledged for the payment of principal and interest; or
(C) Federal agency securities by an agency or instrumentality of the United States Government.
Purchasing a Bond Using the Bond Exchange
The Bond Exchange provides retailers with both online and mail-in bond application and purchasing programs. Retailers may fill out the online application, receive their quote, and pay for the bond using this online process found at www.thebondexchange.com.
Applicants who do not wish to apply online may mail, fax, email, or deliver their applications in person to The Bond Exchange offices. Bond applications can be printed online at www.thebondexchange.com or at www.lotterycommission.arkansas.gov.
Bonds will be provided by the Bond Exchange for retailers in the amount of $10,000 with the premium prices being based on an applicant’s FICO Experian/Fair Isaac Risk Model Version 3 credit scores. The Bond Exchange has identified five (5) tiers of credit ratings which will determine the amount of the bond premium. The tiers are as follows:
|Ultra-Preferred||0.85 %||$ 85|
|Preferred||1.0 %||$ 100|
|Standard||2.0 %||$ 200|
|Substandard||5.0 %||$ 500|
|Adverse||10.0 %||$ 1,000|
As seen above, based on the requirement of a ten thousand dollar ($10,000.00) bond, an Ultra-Preferred customer will pay eighty-five dollars ($85.00) for the required bond (0.0085 x 10,000 = $85.00), while a Standard customer will pay two-hundred dollars ($200.00) for the required bond (0.02 x 10,000 = $200.00). All amounts listed above represent an annual premium.
The address and contact information for The Bond Exchange is as follows:
P.O. Box 23407
Little Rock, AR 72221
Local: (501) 224-8895
Toll-free: (888) 545-0220
650 South Shackleford, Suite 145
Little Rock, AR 72211
Fax (501) 325-1197
Purchasing a Bond Using Another Bond or Insurance Company
If you would like to obtain your own bond coverage, please return the enclosed Bond form and the Acknowledgment of Principal form, or a comparable form issued by your bond or insurance company. The insurance or bond company must be licensed to do business in the State of Arkansas. These forms are also available on the ALC website.
Retailer Surety Bonding Forms
The above documents are in PDF format and requires the free Adobe Reader to view and print.