We frequently hear this from people who call us in a panic: “I didn’t know I had to register a sweepstakes in Florida. What’s the worst that can happen?”
If the promotion won’t start for another 30 days, don’t stress. Review our information on Florida sweepstakes registration, and possibly getting a waiver, or contact us to get it done for you.
If your promotion is less than 30 days from launching, you can panic a little bit. You can still get it done, but you will need to ensure that all paperwork is filed and in place seven days prior to the start date.
Keep in mind: Florida has some of the strictest laws when it comes to sweepstakes. The Florida Department of Agriculture and Consumer Services, which enforces these laws, has an active department of people that will follow up if they find a sweepstakes that is not registered, or if they find that a registered sweepstakes:
- Was not registered with their department on time,
- Did not have a surety bond in place or a waiver secured,
- Manipulated the promotion in any way,
- Changed the rules mid-stream,
- Printed or circulated misleading promotion materials,
- Failed to file complete winner information (with full addresses of winners) in a timely manner at the conclusion of the promotion.
If you don’t abide by their guidelines any of the following could happen:
1. Fines.
Fines can range in the hundreds to thousands of dollars range, depending on how egregious the issue.
2. Your company could lose its waiver status.
Forgetting to file a winners list could result in your company losing waiver status, and requiring that bonds be set up for all future promotions – for all departments in your company, not just yours.
3. Legal action.
The state of Florida can take legal action against your company (or you!), with civil penalties of up to $1,000 for each issue, and/or criminal charges that amount to a second degree misdemeanor with potential for prison time plus fines and legal fees.
The bottom line is to do your homework and follow the law to the letter if you run a sweepstakes in Florida. Contact us if you need any assistance or if you have questions.
To read more posts by Marden-Kane, please visit our main blog page or subscribe to our email list.
Can sweepstakes companies legally require contestant winners to pay a 1% registration fee for a cash prize over $5,000? Also is it up to the contestant winner or the sweepstakes company to pay the taxes required on a cash prize $5,000?
The answer to Part I of your question is no. A sponsor cannot legally require any form of fee to participate in a sweepstakes promotion. Doing so changes the legal classification from a sweepstakes to a lottery. It is illegal to run a lottery without a lottery operating license. Licenses are usually available to local authorities, and non-commercial organizations . The value of the prize has no bearing on the question of registration fees. Regarding who pays the taxes; the contestant winner is the party responsible for paying tax on the cash prize.
There is more to providing a complete answer and possibly a work around for what you are proposing. If you like, send us an email to expert@mardenkane.com to continue the discussion.
I am very confused. Do I have to register with my state of Florida if I win a prize, under $5000.? Does it have to be done before I win a prize> how do I go about doing it?. If it is over $5000. is the procedure the same, or do I register differently? In other words, must I register with the State regardless of what I win? Please explain.
This post is geared towards companies running a sweepstakes, not to consumers that win. Sweepstakes registration is something the people running a sweepstakes (the sponsor) should be doing. A consumer does not have to register with the state of Florida when they win — but their name and address is required to be provided by the sweepstakes sponsor.