A Sweepstakes surety bond is a non-renewable bond guaranteeing the prizes offered in a sweepstakes are awarded to the proper winners. It is also called a games of chance surety bond, sales promotion surety bond or game promotion surety bond.
Sweepstakes surety bonds are required by the state governments. 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.
Florida & New York
Every operator 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.