What is a surety bond?
A surety bond is basically an insurance policy some states require to guarantee that all prizes will be awarded as promised.
How does this affect my promotion?
If your promotion includes elements of chance, and has a total prize value that exceeds $5,000, surety bonds must be provided in the amount of the total prize value and be registered in NY and FL.
A surety bond is held by New York and Florida to protect their residents from fraud by ensuring that the prizes advertised will ultimately be awarded.