A Sales Promotion Surety Bond guarantees the prizes are actually awarded to the proper winners of a sales promotion. If the promotion is open to Florida or New York citizens, one of those citizens wins and the promotion sponsor fails to award the prizes as indicated in the official rules then that state can use the bond to financially protect its citizen. Sales promotion bonds are also called a sweepstakes surety bond, game of chance surety bond or game promotion surety bond.
Currently, Florida and New York are the only two states requiring these bonds. The specific rules for filing a sales promotion are here: Florida, New York. If the cumulative value of all prizes is greater than $5,000 then these states require the promotion sponsor to post a surety bond (or establish a trust account) equal to the total prize value. Sales promotion surety bonds are non-renewable bonds and only needed until all state requirements have been fulfilled after the promotion has ended.
Up to bond amounts well into the eight figures, Alpha Surety has written thousands of sales promotion surety bonds. Our multiple surety markets have a healthy appetite for sales promotion bonds in any amount at very competitive rates. Whether you are a promotion sponsor, promotion agency or industry attorney we can have a bond approved and on your doorstep the next day so you can meet the time sensitive filing deadlines.