The only statutory requirement on bonding with respect to conducting a sweepstakes that we are aware of is in the Illinois Raffles and Poker Runs Act. That Act applies to raffles, which require a player to pay something of value in exchange for an opportunity to win, and based on the facts you have provided about your sweepstakes contest, the Act would not apply. 230 ILCS 15/1.

Importantly, any raffle by definition would violate the federal prohibition on bank participation in lotteries. The Federal Deposit Insurance Act defines a “lottery” as an arrangement in which participants “advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the participants (the ‘winners’) will receive by reason of their advances more than the amounts they have advanced.” 12 USC 1829a(c)(2).

Other than the Illinois Raffles and Poker Runs Act, we are not aware of any provisions on bonding in the context of holding a sweepstakes. The statement in the advertising brochure for the national sweepstakes was likely a broad statement and not tailored specifically for lotteries conducted by banks in Illinois. We do not believe that state bonding requirements in the context of conducting an otherwise lawful sweepstakes in Illinois are applicable to your financial institution.