Running a sweepstakes in the United States is a great way to engage your audience—but it’s not one-size-fits-all. With different laws in different states, marketers need to know when prize bonding is required, how to set geographic and age restrictions, and how to stay legally compliant without overcomplicating the campaign.

This article breaks down key requirements for public, consumer-facing sweepstakes, with a focus on prize bonding, participant eligibility, and when it’s legal to exclude certain states or countries. We also clarify how these rules don’t apply to internal or B2B-only programs.

What Is Prize Bonding—and When Do You Need It?

Prize bonding is a legal requirement in some states, intended to protect consumers by guaranteeing that sweepstakes prizes will be awarded as promised. To meet this requirement, brands must file a surety bond or purchase insurance before the promotion launches.

States with clear bonding and registration thresholds include:

• New York: Bonding and registration are required when total prize value exceeds $5,000
  
• Florida: Same threshold—$5,000 or more in prizes triggers both bonding and registration
  
• Rhode Island: Requires registration only (not bonding) for retail promotions with prize values over $500
  

These rules exist to prevent fraud and ensure that prize sponsors have the financial backing to follow through.

When Bonding Does (and Doesn’t) Apply

Bonding and registration rules only apply to consumer sweepstakes—public-facing promotions open to general audiences. You do not need bonding if:

• Your sweepstakes is invite-only for internal audiences
  
• The promotion is limited to employees, contractors, or resellers
  
• The audience is restricted to a business-to-business (B2B) context
  

As long as you’re not opening the sweepstakes to the general public, you’re generally exempt from bonding and registration requirements.

What the Experts Say

“If your sweepstakes is open to the public and includes residents of New York or Florida with prizes over $5,000, you’re going to need to register and post a bond. But if it’s internal or B2B-only, these requirements should not apply. Getting eligibility right from the start can save time, money, and legal risk.”

Allison Fitzpatrick, Partner, Davis+Gilbert LLP

Can You Exclude Residents of Certain States or Countries?

Yes, you can. Many brands choose to exclude participants from bonding-heavy states like New York or Florida to avoid extra paperwork and cost.

To do this legally:

• State the exclusions clearly in the sweepstakes rules and promotional materials
  
• Use specific language such as “Void in New York, Florida, and Rhode Island”
  
• Make sure your eligibility criteria are also visible during the entry process
  
• For online-only or local promotions, you can limit eligibility by geography or ZIP code—but you still need to spell it out in the rules
  

You can also apply age-based restrictions. For example:

• 18+ for most promotions
  
• 19+ in Alabama and Nebraska
  
• 21+ for alcohol or other regulated product categories
  

Avoid exclusions based on gender, race, or any protected class unless legally required or justifiable. Improper exclusions may violate anti-discrimination laws.

Practical Tips for Defining Eligibility

To stay compliant and reduce your risk:

• Be specific: Clearly define who is eligible—by age, state, country, or customer status
  
• Use consistent language: Your marketing, official rules, and entry forms should all match
  
• Exclude carefully: Avoid vague phrases like “only open to our customers” without legal backing
  
• Separate consumer and B2B: Internal reward programs don’t require bonding, so avoid mixing them with public promotions
  

Summary Table: Key State Requirements

Final Thoughts for Marketers

If you’re running a sweepstakes open to the public, knowing when bonding applies is critical—especially if your promotion includes high-value prizes and covers multiple states.

To keep things on track:

• Budget for bonding if you’re including residents of New York or Florida and offering over $5,000 in prizes
  
• Consider exclusions to simplify logistics, but only if they’re clearly stated
  
• Set eligibility rules early and include them in all promotional materials
  
• Keep B2B and internal programs separate—they’re generally exempt from bonding and registration
  

How BeeLiked Helps You Run Compliant Promotions

BeeLiked helps brands build gamified promotions that engage customers while staying compliant with local laws. Whether you’re running a sweepstakes, instant win campaign, or digital loyalty program, we provide:

• Customizable entry rules by state, region, or age
  
• Secure entry tracking for eligibility and prize fulfillment
  
• Game formats that include spin wheels, slot machines, scratch-offs, and more
  
• Tools to support compliance, including entry caps and AMOE flows
  
• Clear separation between B2B/internal and consumer-facing campaigns
  

We don’t offer legal advice, but we’ve designed our platform to support legal best practices and work seamlessly with your internal legal or agency partners.

Need help managing sweepstakes eligibility, bonding, or participant rules? Let’s talk. BeeLiked makes it easy to run smart, scalable campaigns with confidence.