If you wish to conduct a game of chance or charitable sweepstakes program the New York Department of State requires the filing of financial security in an amount no less than the total value of the prizes offered. A Games of Chance surety bond is the preferred instrument and is authorized under Section 369-e of the New York State General Business Law. The bond is a simple permit obligation that guarantees that the operator will comply with all rules regulating the promotion, advertising and fiduciary responsibilities. The surety bond is not cancelable however it is required to guarantee one particular gaming scheme. The full law text is available at http://www.dos.ny.gov/forms/corporations/0255-INS.pdf In order to be registerable, a game of chance must meet the following criteria:
• promote consumer products or services
• have a total prize value in excess of $5,000
• determine a winner by chance
• require no consideration for entering the Game of Chance
The New York Games of Chance Surety Bond for the total prize amount, application and the game’s rules and regulations must be forwarded to the New York Department of State, Division of Corporations, State Records at One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231. The filing fee must be made payable to the New York Department of State.
Within ninety days of completion of the game of chance a list of the names and addresses of each winner of every prize having a value of more than $25, a description of those prizes, and the date on which the prize was delivered must be filed with the Department.
The necessary forms follow:
New York surety leader, Surety One, Inc. is a specialist in the bonding needs of the gaming industry. We offer both surety and fidelity bonds needed by these professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (800) 373-2804, or email us at Underwriting@SuretyOne.com for an New York Games of Chance surety bond application or information on ANY surety bonding need.
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