Fantasy Contest Operator Bond Overview
The fantasy contest operator bond, sometimes also called a daily fantasy sports operator bond, is a surety bond required in a number of states who issue licenses for fantasy contest operators.
States which require operator licensure typically also require operators to present a surety bond upon applying for their license. Fantasy contest operators hold large amounts of participants’ funds, and are trusted with participants’ personal information. The bond is meant to guarantee that operators will hold fantasy contests in accordance with local and state legislation that regulates the industry.
The fantasy contest operator bond is an agreement between the fantasy contest operator (the principal), the local governing authority issuing licenses (the obligee), and the surety bond company that backs the bond financially and pays out compensations.
If an operator violates local regulations– such as conducting business dishonestly, or not paying out funds to players– a claim can be made against their surety bond. In the case of a legitimate claim, the surety has the responsibility to compensate claimants. The operator must then compensate the surety for its backing.
For information regarding the cost of fantasy contest operator bonds, see the sections below.
Fantasy Contest Operator Bond Cost
The cost of a bond is a fraction of the total amount of the bond. Many states which require a fantasy contest operator bond, require it to be in the amount of money deposited in all participants paid fantasy sports accounts. To obtain the bond, you pay a percentage of its full amount.
What determines the cost you will be quoted are factors such as your personal credit score. Before offering you a rate on your bond, sureties will also consider your:
- Business and personal financial statements
- Asset profile and liquidity
- Work experience and record
Those applicants who have a high credit score can typically rely on getting a rate which is between 1% and 5% of the total amount of their bond.
Which agency you acquire your bond from also affects your cost. By applying with Bryant Surety Bonds, you have access to exclusive rates thanks to our A-rated and T-listed surety partners. These companies are among the best sureties in the country, consistently providing us with some of the lowest rates for our clients.
Want to apply for a bond? Just fill in your application and send it to us. To speak to one of our experts, call us at (866)-450-3412.
Bad Credit Bonds
Even if you have a low credit score, you can still get a fantasy contest operator bond. Thanks to our Bad Credit Program, applicants with lower credit scores can still get bonded.
Rates under this program are slightly higher, to compensate for the increased risk, but applicants are still sure to receive the best possible rate on their bond from our highly trusted surety partners.
How to Get Your Fantasy Contest Operator Bond
To get your fantasy contest operator bond apply online here. Just fill in your application and submit it to us. We will get in touch with you shortly with an entirely free quote on your bond.
You can pose all your additional questions to one of our surety bond professionals, by calling us at (866)-450-3412. We will be happy to help you!