Introduction
Operating games of chance—whether raffles, sweepstakes, bingo, or promotional contests—can be a powerful way for businesses and nonprofit organizations to engage customers and raise funds. However, both New York and Florida impose strict requirements to protect participants and ensure that prize obligations are met. Central among these requirements is the procurement of a Game of Chance Bond (also known as a Games of Chance Surety Bond or Game Promotion Bond). This blog post explains what these bonds are, why they’re required, and how the rules differ between New York and Florida—and how Lexington National Insurance Corporation can support your bonding needs.
A Game of Chance Bond is a three-party contract between:
- Principal (the operator of the game of chance),
- Obligee (the state regulatory agency), and
- Surety (the bond issuer, i.e., Lexington National).
By posting the bond, the principal guarantees compliance with all applicable laws and regulations governing games of chance. Should the principal fail to award prizes, file required reports, or otherwise comply, the surety steps in to satisfy prize obligations or penalties, up to the bond amount.
New York: Games of Chance Bond Requirements
Under Section 369-e of the New York General Business Law, any “game of chance” with total prizes exceeding $5,000 must be registered with the New York Department of State. Registration requires:
- A completed Games of Chance Registration form (including the game’s rules);
- A $100 filing fee; and
- A Games of Chance Surety Bond (or a Certificate of Deposit) in an amount at least equal to the total prize value.
Qualifying “games of chance” include raffles, pull-tabs, punchboards, and similar promotions that:
- Promote products or services,
- Award prizes by chance,
- Require no purchase consideration, and
- Offer aggregate prizes over $5,000.
Once filed, the bond remains in effect until the particular game concludes and all prizes have been awarded. Within 90 days after the drawing, organizers must file a certified list of winners for prizes over $25, giving further assurance that prize obligations are fulfilled.
Florida: Game Promotion Bond Requirements
Florida regulates “game promotions” under Chapter 849 of the Florida Statutes. For promotions offering more than $5,000 in prizes, operators have two options (filed at least 7 days before launch):
- Establish a trust account with sufficient funds to cover total prizes; or
- Obtain a Game Promotion Bond in the full prize amount.
The bond must equal the total prize value at all times, ensuring that winners can be paid without delay. Additionally, operators must:
- File the game’s rules, prize lists, and either the trust account verification or bond with the Florida Department of Agriculture and Consumer Services;
- Post a nonrefundable $100 filing fee alongside the bond/trust account documentation; and
- Submit a certified winners list (prizes >$25) within 60 days after winners are determined.
Unlike New York, Florida’s statutes specifically allow longstanding operators (≥ 5 years without violations) to petition for a waiver of the trust/bond requirement, emphasizing compliance history.
Key Differences Between New York and Florida
| Aspect | New York | Florida |
|---|---|---|
| Governing Law | NY General Business Law §369-e | FL Statutes Chapter 849 (especially §§ 849.0935 & 849.094) |
| Prize-value Threshold | > $5,000 | > $5,000 |
| Filing Deadline | At registration (no later than game launch) | ≥ 7 days before commencement of promotion |
| Bond Amount | ≥ total prize value | = total prize value |
| Alternative to Bond | Certificate of Deposit | Trust account |
| Filing Fee | $100 | $100 |
| Winner Reporting | Within 90 days after drawing; list winners ≥ $25 | Within 60 days after winners determined; list winners ≥ $25 |
| Waiver Possibility | None | Possible for veteran operators (≥ 5 years, no violations) |
How Lexington National Can Help
- Fast, Streamlined Process
- Complete a brief application and indemnity agreement. Most bonds can be issued within 24 hours of approval.
- Expert Guidance
- We’ll guide you through state-specific requirements—ensuring your bond, filing fee, and ancillary forms comply with New York DOS or Florida’s Department of Agriculture protocols.
- Robust Claims Support
- In the rare event of a claim, our dedicated surety claims team manages the process efficiently, protecting your reputation and minimizing disruption.
Conclusion
Whether you’re planning a charity raffle in Albany or a consumer sweepstakes in Orlando, securing the proper Game of Chance Bond is critical for legal compliance and participant trust. Lexington National Insurance combines financial strength, swift issuance, and hands-on expertise to make your bonding experience seamless. Contact us today to ensure your next game of chance is fully protected.
Disclaimer: This blog post is for informational purposes only and does not constitute legal or professional advice. For advice specific to your situation, please consult a qualified attorney or licensed surety professional.