Everything You Need to Know About Sweepstakes Bonding & Registration Requirements

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Running a sweepstakes can be an exciting way to engage your audience and promote your brand. However, it comes with legal responsibilities, one of which is bonding. Sweepstakes bonding ensures the legality and integrity of your contest. In this guide, we’ll explain what bonding is, why it’s required, and how you can comply with these requirements to run a successful and lawful sweepstakes.

What is Sweepstakes Bonding?

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Sweepstakes bonding is a form of insurance that protects participants by ensuring the sweepstakes sponsor has the financial backing to fulfill the prizes promised. It guarantees that the prizes will be awarded as advertised and is a legal requirement in some states.

Why is Sweepstakes Bonding Required?

Several states mandate bonding for sweepstakes with prizes exceeding a specific value in the United States. For example:

Bonding is required to:

  • Protect participants from fraud.
  • Ensure the integrity and fairness of the sweepstakes.
  • Meet legal requirements in certain jurisdictions, ensuring sponsors are accountable.

Read More: Do Skills-based Contests Need Sweepstakes Registration and Bonding?

How to Comply with Sweepstakes Bonding Requirements

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Here’s a step-by-step guide to help you navigate the process:

  1. Determine If Your Sweepstakes Needs Bonding:
    • Check the prize value: Bonding is required if your sweepstakes prize exceeds the threshold set by certain states (e.g., $5,000+ in New York and/or Florida) Identify the states where participants reside: If your sweepstakes is open to residents of states that require bonding, you must comply with those states’ regulations.
  2. Find a Bonding Company:
    • Research and select a reputable bonding company experienced in handling sweepstakes bonds. We can help bond contact us at https://www.sweeppea.com/ 
    • Consider reaching out to your legal counsel or industry peers for recommendations.
  3. Submit Necessary Paperwork:
    • Gather the required documentation, including details about your sweepstakes, prize information, and promotional materials.
    • Complete the bonding company’s application forms and provide all necessary information.
  4. Pay the Bonding Fee:
    • Bonding fees vary based on the prize value and the bonding company’s rates.
    • Ensure timely payment to avoid delays in obtaining the bond.
  5. File the bond with the State(s):
    • Submit the completed bond to the appropriate state authorities before the start of your sweepstakes.
    • Keep a copy of the filed bond for your records.

Common Challenges and Solutions in Sweepstakes Bonding & Registration

While the bonding process is straightforward, businesses may encounter challenges. Here are some common issues and solutions:

1. Complex Paperwork:

  • Solution: Work closely with your bonding company to ensure all paperwork is completed accurately. Consider hiring a legal expert to assist with the process.

2. State-Specific Requirements:

  • Solution: Stay informed about the bonding requirements in each State where your sweepstakes is open. Consult with legal counsel to ensure compliance with all relevant regulations.

3. Tight Deadlines:

  • Solution: Plan your sweepstakes timeline carefully, allowing ample time for the bonding process. Start the bonding process well in advance of your sweepstakes start date.


Sweepstakes bonding is critical to ensuring the legality and integrity of your contest. By understanding the requirements and following the steps outlined in this guide, you can protect your business and your participants. Complying with bonding requirements helps avoid legal penalties and enhances your brand’s credibility and trustworthiness.

Looking to run your own sweepstakes campaign? Check out our self-service sweepstakes platform.

For more information on how Sweeppea can help you with your next sweepstakes, contact us at support@sweeppea.com or call us at 305-505-5393. 

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