The PCH contests are registered in New York and Florida, as required by state laws.
Major PCH Prize Amounts are Bonded to Ensure Payment
Contest registrations are needed in certain states and require specific information. This registration data includes a description of the giveaway, the number and value of prizes offered, the geographic region eligible to win, and the giveaway start and end dates. They also require proof of adequate funding to pay the prizes offered and submission of a list of winners at the end of the promotion. Registrations are intended to protect sweepstakes participants by ensuring compensation if the sponsor is unable to award prizes offered. Publishers Clearing House registers its sweepstakes in the states of New York and Florida.
In New York, General Business Law section 369-e requires that persons, firms, and corporations offering games of chance in connection with the sale of goods must file a contest registration with the NY Department of State, if the total announced value of prizes offered is more than $5,000.00. A special trust account or a surety bond in an amount sufficient to cover the total value of prizes to be offered must be obtained and the giveaway sponsor must, within 90 days following the completion of the promotion, file with the Secretary of State a list of the name and address of each winner of more than $25, and the date when such prizes were delivered. In Florida, Section 849.094 of the Florida Statute requires game promotions offering prizes totaling more than $5,000 to file a contest registration with the Florida Department of Agriculture and Consumer Services, Division of Consumer Services 7 days prior to commencement. 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 prizes valued at more than $5,000. 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 5 consecutive years and they have had no civil, criminal or administrative actions instituted against them for a violation of s. 849.094 F.S. during that 5-year period.