Three states require sweepstakes registration and bonding in order to run a promotion in those states. If your sweepstakes meets certain criteria, you must register and bond to make your sweepstakes legal in New York, Florida, and Rhode Island.

As a Sweepstakes Company, here is a breakdown of the sweepstakes registration and bonding requirements for each of these states.

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New York

New York State requires companies to register a sweepstakes if the prize being given or the pool of all prizes combined away is worth more than $5,000 retail value. A surety bond must also be obtained for the amount of the prize value.

Make sure to register your sweepstakes at least 7 days prior to the sweepstakes start date. You must also submit a winners list to the State of New York within 90 days after your sweepstakes end date.

As Sweepstakes Administrators we can help provide the services needed to bond and register your sweepstakes in New York.

Florida

If your sweepstakes prize or all prizes combined has a total prize with an Approximate Retail Value (ARV) of $5,000 or more and the sweepstakes is open to residents of Florida, you must register your sweepstakes with the state.

You will be required to submit a copy of the Official Rules, obtain a surety bond, and open a trust account with the state to ensure that the prize money is available to the prize winner.

The state of Florida requires that you register and bond your sweepstakes at least 7 days prior to the start date of your promotion. After your sweepstakes ends, you must also submit an official winners list to the state within 60 days.

We know Sweepstakes Laws and can help provide the services needed to bond and register your sweepstakes in Florida.

Rhode Island

Rhode Island’s threshold for sweepstakes registration and bonding is lower than other states, namely for sweepstakes offered at retail establishments. If you plan to run an in-store sweepstakes promotion in Rhode Island, with prizes that are valued at $500 or more, you must register your sweepstakes with the state. This requirement only applies if the entrant must go to your brick and mortar location in order to enter the sweepstakes. In other words, the Sponsor must have a retail location in the state of RI for this requirement to apply.

Rhode Island does not require you to obtain a surety bond or file a winners list with the state. However, you must keep information identifying the winners of your contest for up to 6 months after the promotion’s end date.

Do Skills-based Contests Need Sweepstakes Registration and Bonding?

Contests in which the quality of the entries will be evaluated in order for a winner to be selected (e.g. photo contest or writing contest, games not based on chance) do not require bonding and registration in New York, Florida or Rhode Island.

However, if residents of the state of Arizona are allowed to participate, and a purchase is involved, registration and bonding is required for the state of Arizona.

Need help with sweepstakes or contest management? Call 305-505-5393 or email us with your questions.

The post Which States Require Sweepstakes Registration and Bonding? appeared first on Sweeppea Blog.

Should you change the sweepstakes rules for your sweepstakes after it has started? Generally, no. However, you might think that you really need to.

Here is how to know when it’s okay to change your sweepstakes rules after the promotion starts and how to do it.

How Will the Sweepstakes Rules Change Affect Entrants?

The first thing you need to consider is how your sweepstakes rules change will affect existing entrants. In some instances, the change could have a major impact which would actually render your sweepstakes illegal.

If any of the following apply, do not change your sweepstakes rules:

• You’ve already registered and bonded your text sweepstakes. If your promotion is registered and bonded with the Attorney General in the states of New York or Florida.
• A change to the Official Rules changes the odds of winning. If your change affects the integrity of the sweepstakes, you could be fiend or plagued by negative PR by the entrants.
• Your sweepstakes rules changes create an unfair advantage. If earlier or later entrants have a better chance of winning because they are held to different standards than the other group, then don’t make changes to the rules.

These reasons are the main reasons for why you shouldn’t change your rules if you don’t want to cause your promotion to be deemed illegal, or not following sweepstakes laws or considered unfair by entrants. So if a rule change is still needed, in these cases, consult an attorney first.

How to Announce a Sweepstakes Rules Change

Now let’s say your sweepstakes rules change is actually allowed (because it does not meet the criteria above). If you’ve decided that you’d like to change the end date of the promotion, for example, make a formal announcement before the change goes into effect.

Include the announcement of the change in your updated Official Rules as an amendment. The revision, and the date that it goes into effect, should be clearly indicated in all of your sweepstakes advertising materials and Official Rules. Identify and date the rules changes using the phrase “effective as of.”

Make sure the sweepstakes rules change announcement is visible on all mediums where you have/will advertise your sweepstakes. For example, if you promote your sweepstakes via ads on social media, then you must also make an ad that announces the rules change.

Be Prepared for Questions

It’s inevitable that entrants will have questions about your sweepstakes changes. Be prepared for questions and negative feedback from entrants who aren’t happy with the change. Responding promptly and honestly is the best way to avoid major disruption to your promotion.

Given the potential for fallout and the loss of trust that a sweepstakes rules change may cause, the best thing to do is to just get it right from the beginning. However, if a sweepstakes rules change is unavoidable, make sure that you have a plan in place.

Need help with sweepstakes or contest management? Call 305-505-5393 or email us with your questions.

The post Can You Change Your Sweepstakes Rules After the Promotion Starts? appeared first on Sweeppea Blog.