A Sweepstakes Surety Bond guarantees the prizes offered in a sweepstakes are actually awarded to the proper winners if they are from certain states. Sweepstakes bonds are also called a game of chance surety bond, sales promotion surety bond or game promotion surety bond. These bonds protect the state’s consumers against fraud by promotion sponsors who fail to fulfill the prizes offered in a sweepstakes as indicated in the official rules.
Currently, the only two states requiring these bonds are Florida and New York. Every operator of a game promotion in which the total announced value of the prizes offered is greater than $5,000 must establish a trust account or obtain a surety bond equal to the total amount of the prizes offered. The specific rules for filing your sweepstakes are here: Florida registration, New York registration. The bond is a non-renewable bond that is only needed until the sweepstakes ends and all state requirements have been fulfilled.
Alpha Surety has sold thousands of sweepstakes surety bonds, from the smallest $5,000 bonds to bonds well into the eight figures. These bonds are event related and companies that run sweepstakes potentially need dozens of bonds a year. Alpha Surety has multiple surety markets with a healthy appetite for sweepstakes bonds in any amount at very competitive rates.
We work with companies sponsoring the promotions directly, their promotion agencies and their industry attorneys to obtain the bonds they need in the time frame they need them. We can have a sweepstakes bond approved and on your doorstep the next day, which is important since the filing of these bonds with both states is time sensitive.