What is a bingo license bond?
A bingo license bond is a contract required for organizations conducting bingo games in certain states. The bond guarantees that the organization will comply with all applicable laws and regulations and handle bingo proceeds fairly and honestly, protecting participants and ensuring the integrity of the game.
Get Your Bingo License Bond:
- A bingo license bond is required for organizations conducting bingo games in certain states.
- Many states, such as Texas, South Carolina, Florida, California, and some cities and counties, require bingo license bonds.
- The bonding requirement typically applies to charitable organizations, fraternal organizations, religious organizations, and other nonprofit entities authorized to host bingo games.
Who needs a bingo license surety bond?
Many states, such as Texas, South Carolina, Florida, California, and some cities and counties, require bingo license bonds. Often, the state gaming regulator or charitable gaming commission requires the bingo license bond.
The bonding requirement typically applies to charitable organizations, fraternal organizations, religious organizations, and other nonprofit entities authorized to host bingo games.
What are the requirements for the bond?
Requirements for bingo license bonds may vary from state to state. However, some standard requirements include the following:
- The bond must be in a certain amount, typically determined by the amount of bingo proceeds expected to be generated.
- A surety company licensed to do business in the state where the bingo games will commence must issue the bond.
- The bond must be renewed annually.
- The bonded organization must comply with all applicable laws and regulations regarding the conduct of bingo games.
In most cases, you must renew your bond annually to maintain compliance with state regulations. Check the renewal requirements set by your respective state authority overseeing bingo licenses.
A bingo license bond is often a prerequisite for obtaining the necessary license or permit to conduct bingo-related activities.
The term of the bingo license bond typically aligns with the licensing period, which is usually one year. However, this can vary depending on state regulations.
The bond may come with specific conditions outlined by your state authority. These conditions may include maintaining accurate records, complying with reporting requirements, and adhering to all applicable bingo operation laws and regulations.
The bond amount required can vary by state. It is typically determined based on factors such as the anticipated gross receipts from bingo games or the number of games conducted. The bond amount guarantees to cover any potential financial losses or damages resulting from non-compliance.
How much does this bond cost?
The cost of a bingo license bond varies depending on the bond amount, the surety company, the applicant’s credit score, and the state where the bond is being issued. However, the cost is generally relatively affordable.
Typically, a bingo license bond premium ranges from 1% to 10% of the bond amount. Applicants with good credit can usually expect to secure a bond at a lower premium rate.
If you are considering conducting bingo games in a state that requires a bingo license bond, contact a surety company like ZipBonds to get a quote.
What are the benefits of having a bingo license bond?
There are several benefits to having this surety bond.
- Protecting the public: The bond protects the public from financial loss if the organization does not comply with the law or fails to handle bingo proceeds fairly and honestly.
- Improving an organization’s credibility: A bingo license bond can help to improve the organization’s credibility and reputation.
- Making it easier to obtain financing: The bond may make it easier for the organization to get a bank loan or line of credit.
How to Apply for a Bingo License Bond in Your State
To obtain this bond, simply apply and pay online. ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply on our website or call us at 888-435-4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.