The New York Department of State (NYDS) regulates and registers games of chance in the state of New York. In order to be registrable, a game of chance must:
- 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 NYDS mandates promoters of games of chance file a surety bond as part of the registration requirements. The amount of the surety bond must equal the amount of prize money to be distributed. The bond is not renewable, and it expires after the game of chance has concluded and there are no pending claims against the bond.
New York Game of Chance Surety Bonds ensure the principal (promoter) pays all prizes offered and complies with the regulations in 369-e of the New York State General Business Law. Violations of 369-e include:
- Awarding prizes to predetermined winners
- Failing to file with the Secretary of State a listing of the name and address of each winner of ever prize in excess of $25
- Distributing false or misleading information concerning the game
- Failing to post the rules and regulations of the game in prominent promotional areas
If a harmed party files a valid claim against the bond, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out.
Pacific Surety is proud to offer industry low rates and quick turnaround time for quoting of New York Game of Chance Surety Bonds. Feel free to complete our simple application to obtain an approval within hours.
Surety Bond Name
Game of Chance Surety Bonds – New York
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