Sweepstakes Bonding and Registration

Sweepstakes (also called games of chance) and similar promotions are an effective way of increasing brand recognition, increasing sales and generally contributing to the success of your venture - whether that is a store, business or web site. However, sweepstakes bonding and registration can be a complicated and difficult to understand procedure. You may have to abide by the laws and regulations of several different authorities - both state and federal. And a sweepstakes is not a lottery - there are significant differences between them, in that sweepstakes don't usually require a purchase. As you can see navigating sweepstakes bonding and registration can be complex.

Several states require sweepstakes to be registered. If your sweepstakes is based in New York, Florida, or Rhode Island, then it must be registered with your Secretary of State. Florida tends to enforce the registration policy aggressively, New York less so - although industry insiders predict that New York will start to enforce their rules more rigorously. Arizona requires registration at no cost. As you can see sweepstakes bonding and registration is important.

New York and Florida also require that a bond in the amount of the total prizes (if they exceed $5000) must also be submitted along with the registration. Rhode Island requires a bond if the total prize money exceeds $500.

Not only can the initial registration be complicated, but more paperwork can often be necessary if you need to make a change to the sweepstakes rules - and when you need to announce a winner.

If you do register your sweepstakes, you may be subject to a mandatory waiting period before you can commence the promotion, and once begun, there may also be guidelines as far as ongoing notification requirements. There are some other things you may want to consider - to avoid legal issues in the future - when executing sweepstakes bonding and registration. Each state has its own set of rules governing sweepstakes - check for state-specific requirements before you launch your product.

You may want to exclude residents of certain states from participating - one solution is to clearly use the disclaimer "void where prohibited". Ensuring that certain states are exempt from participating may help reduce the bonding and registration requirements needed.

For the same reason, you may also want to exclude residents of other countries, due to the complexity of requirements governing registration of sweepstakes overseas. In order to manage all of the complex issues it is almost always better to outsource your sweepstakes bonding and registration. It's also generally less expensive and easier to comply with - or solve legal issues concerning - United States laws rather than overseas laws.

A sweepstakes can be a winner for your company as well as your customers. But, sweepstakes bonding and registration, in the constantly changing world of marketing law can be challenging. Always consult with an attorney or a marketing company before finalizing things. Using an experienced team of consultants for your sweepstakes bonding and registration can save you a lot of time, money and headaches.

Sweepstakes Management