Lottery bonds are typically small bonds required by state governments as part of a sellers approval process to sell lottery tickets.  Lottery bonds are intended to provide a minimum guarantee to the state protecting the state from the mishandling or misappropriation of lottery revenue or tampering with the lottery machines.  Lottery bonds are also intended to ensure that the lotteries are fair for all participants.

Lottery bonds are typically small bonds with surety bond amounts lower than other types of commercial surety bonds.  Surety bonding companies write these types of bonds often quickly with little more than the basic application and credit check.