Learn when you may be required to obtain a surety bond and registration for your Sweepstakes and how to do so.
Some states require a surety bond for your Sweepstakes prizes and a registration of the Sweepstakes with their gaming agency. If the total value of all prizes is greater than $5,000, a surety bond and registration is required to include residents of these states in the drawing:
- New York: required for all Sweepstakes
- Florida: only required if the sponsor (your organization) is not a 501(c) organization
When is registration and bonding not required?
If the total value of all prizes is less than $5,000, you will not be required to register or bond it in any state. You may also choose to exclude New York (and/or Florida) residents from your Sweepstakes if you want to avoid the registration and bonding process. Our approvals team will reach out to you after you publish your Sweepstakes to confirm the rules.
When should I register and bond my Sweepstakes?
Your Sweepstakes must be completely set up before acquiring the bond. Once the bond is obtained, you can’t make any changes to your Sweepstakes.
What are the costs for registration and bonding?
The cost of registering a charity Sweepstakes in each state is $100 (plus any express shipping fees), and the price of a surety bond is 2% of the value of the prize(s) (plus any express shipping fees). Therefore, if you need to register and bond in New York and Florida, you will need to acquire two separate bonds.
What is the registration and bonding process?
RallyUp will provide you with all the information you need to navigate the registration and bonding process. It may seem daunting, but it is a relatively straightforward process.
1. Acquire the bond.
We will introduce you to our partner, who can help you acquire the bond. They have a simple form for you to fill out and can usually get the bond completed the same day. They can overnight the bond to you and send an invoice for all charges.
2. Sign and notarize the bond.
Once you receive the bond in the mail, you will need to have it signed and notarized before sending it off to the state to register your Sweepstakes.
3. Fill out the state registration form.
A registration form for each state must be filled out and mailed in with a check for $100.
4. Send all information to the state.
Send the following information to the state to register your drawing:
- Printed copy of official rules – (RallyUp will provide a PDF copy for you)
- Notarized surety bond
- Signed registration form
- Check for $100
We recommend sending this packet with a return receipt or some way to track that it was received. Once you have proof that the state received the package, contact us, and we will be able to approve your Sweepstakes so it can go live.
Frequently Asked Questions
Which states require Sweepstakes registration and bonding?
New York requires registration and bonding for all Sweepstakes with prizes totaling over $5,000. Florida only requires it for Sweepstakes over $5,000 if the sponsoring organization is not a 501(c) organization.
What is the prize value threshold for registration and bonding?
If the total value of all prizes is less than $5,000, you are not required to register or bond your Sweepstakes in any state. Registration and bonding is only required when total prize value exceeds $5,000.
Can I avoid registration and bonding entirely?
Yes, you can avoid the registration and bonding process by either keeping your total prize value under $5,000 or by excluding residents of New York and Florida from participating in your Sweepstakes.
How much does registration and bonding cost?
State registration costs $100 per state (plus any express shipping fees). The surety bond costs 2% of the total prize value (plus express shipping fees). If registering in both New York and Florida, you’ll need two separate bonds.
Can I make changes to my Sweepstakes after getting bonded?
No, your Sweepstakes must be completely set up before acquiring the bond. Once the bond is obtained, you cannot make any changes to your Sweepstakes.
How long does it take to get a surety bond?
RallyUp’s partner can usually complete the bond the same day you fill out their simple form. They can overnight the bond to you along with an invoice for all charges.
What documents do I need to send to the state for registration?
You need to send a printed copy of official rules (provided by RallyUp as a PDF), the notarized surety bond, the signed registration form, and a check for $100. Send this packet with tracking to confirm receipt.
When will my Sweepstakes be approved to go live?
Once you have proof that the state received your registration package, contact RallyUp. After confirmation, RallyUp will approve your Sweepstakes so it can go live.