Does the approximate retail value (ARV) of your sweepstakes prize structure exceed $5,000? And, is your sweepstakes open to residents of the State of Florida? If you’ve answered yes to both questions, then this blog is for you.
Game promotions offering prizes totaling more than $5,000 must file with the Florida Department of Agriculture and Consumer Services (FDACS) seven days prior to commencement of the game promotion. Even game promotions based in other states must be filed if they are conducted in Florida and/or are open to Florida residents and have a total combined prize value of more than $5,000.
So how does the process work?
In order to register a sweepstakes in Florida you need to submit a filing fee, along with a completed Registration Form, and a copy of the final full Official Rules. In addition, a surety bond or statement of trust is required from the operator unless they have conducted game promotions in Florida for at least five consecutive years and they have had no civil, criminal, or administrative actions instituted against them for a violation of Section 849.094, Florida Statutes (F.S.), during that five-year period. This protects consumers who participate by ensuring compensation if the game operator is unable to award prizes offered in the promotion.
All required documentation needs to be submitted seven (7) calendar days prior to the start date of your promotion. A violation of the game promotion law (including the seven-day requirement) can result in a civil penalty of up to $1,000 per violation, an injunction, and in some cases if appropriate, referral for criminal prosecution. In addition, a violation may constitute a deceptive and unfair trade practice actionable under the Florida Deceptive and Unfair Trade Practices Act.
Securing a Bond or Opening a Trust Account
When it comes to the bond or trust account, if you open the account and provide the information to us, no further paperwork is needed. If we open the account for you, then you need to fill out an affidavit that says that you give us permission to open this account for you. The affidavit has to be notarized and can be used for other promotions in the future. In either case, you have to come up with the funds, or we can invoice you for the full amount.
Waiver Status
By having waiver status, you do not need to open a trust account or surety bond to register with the state. However, you still need to follow the requirements regarding completion and submission of a Registration Form, a filing fee check, and the full Official Rules within the set-time limits. A waiver status is not automatic – you must apply for it – but we can help you do that as well.
It is important to know that once a Waiver is earned it can be revoked at any time should a violation arise. And, even if a Sponsor or Operator receives a bond waiver, they still need to register the promotion within the time frame constraints set by the state of Florida.
Successful Registration
Once you have registered with Florida, they will send you a confirmation letter letting you know that the sweepstakes has been registered. This letter contains a code that is specific to your sweepstakes that we need to include in all correspondence with Florida. Once you have registered, the rules of the promotion and any parameters or “material terms” of the promotion (dates, times, prizes, etc.) cannot change or you will be fined.
The material terms of the rules must be published in all advertising copy. Full rules must be conspicuously posted in all outlets. Additionally, game operators must give, at no charge, a list of winners to those who request it.
Filing Winner Information
After the sweepstakes has ended, you have 60 days from the drawing date to submit an official winners list to the state of Florida. This is required as part of the process, and you can be fined if you don’t file your winner information in a timely manner. Fines can range from a few hundred dollars and up.
The winners list must include names and full addresses of all prize winners that win a prize with a value larger than $25. If you can’t get all the winners within the 60 days you can file for an extension, or we can file one for you, which usually extends the deadline to another 60 days.
After you submit the winner’s list to Florida, they send back a letter letting you know that you can close your trust or bond with your financial institution.
Sound complicated?
It can seem a bit intimidating, but we have successfully registered promotions in Florida for decades. If you need help, contact us and we can get the process going for your next sweepstakes.
To read more about required registration in other states, see our posts on registering a sweepstakes in Rhode Island and New York.
To read more posts by Marden-Kane, please visit our main blog page.