The New York Sweepstakes Law, General Business Law 369-e, requires any sweepstakes or game of chance used to promote products with total prizes over $5,000 to be registered with the New York Secretary of State at least 30 days before launch. It is a long-standing statute that remains continuously in force.
New York Sweepstakes Law Registration and Bonding
The filing carries a $100 fee and must cover the rules, odds, prize values, duration, and geographic area of the promotion. The sponsor must also either escrow funds equal to the total prize value in a qualifying bank account or post a surety bond in that amount for the entire promotion. Winners must be reported to the Secretary of State within 90 days after the promotion ends.
Why National Giveaways Are Covered
Failure to register is a class B misdemeanor. A social media giveaway open nationwide counts if New Yorkers can enter, so brands running large-prize social contests should register and bond in New York and Florida, or exclude those states in the official rules.
Source: New York State Senate: New York General Business Law 369-e
Report a violation: If you believe a business is violating this law, you can file a complaint with the New York Attorney General Consumer Frauds and Protection Bureau.
