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.
Since its inception in 2002, Alpha Surety has sold thousands of sweepstakes surety bonds. Because these bonds are event related, 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 them 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.