You're going to give away a car to sell more... but do you already know what warranty SEGOB will require?
Imagine that your company is preparing a promotional campaign to increase its sales.
The marketing team's proposal is attractive:
“Buy our products and be entered to win a new car.”
The campaign promises to generate traffic, increase customer engagement, boost sales, and strengthen brand recognition.
Everything seems to be ready.
The agency has already designed the ads. The car has been selected. The budget has been approved, and the launch date is approaching.
But then the legal department asks a question:
Do we already have the permit from SEGOB and the guarantee that supports the delivery of the prize?
It's a question that could completely change the promotion schedule.
In Mexico, organizing a raffle involves more than just defining prizes, participants, and advertising. Depending on the specifics of the raffle, there may be regulatory, documentary, and financial obligations that must be met before it takes place.
Among them is the raffle bond , a guarantee whose objective is to support compliance with the obligation to deliver the promised prizes.
Understanding how it works can help you avoid setbacks and organize promotions more safely.
1. When does a company need permission from SEGOB to hold a raffle?
In Mexico, the Ministry of the Interior, through the General Directorate of Games and Raffles, is the authority in charge of authorizing raffles subject to the corresponding federal legislation.
The regulation contemplates different modalities.
Raffles with ticket sales
These are those in which participants pay a specific amount to acquire the right to participate.
Raffles without ticket sales
In this format, participation does not involve buying a specific ticket for the draw.
It may be related to the purchase of a product, the contracting of a service, or the free delivery of a participation certificate, depending on the authorized modality.
Instant draws
These are dynamics in which the participant can immediately know the result through the authorized mechanism, as happens with certain tickets known as scratch-off tickets .
And what about promotions done on social media?
The medium used to promote a dynamic does not, by itself, determine whether it needs permission.
The important thing is to review how the winner is selected, what conditions the promotion establishes, and whether it legally constitutes a raffle subject to authorization.
Calling a dynamic a “giveaway”, “promotion” or “contest” does not automatically eliminate regulatory obligations.
Before announcing a campaign, it is advisable to verify its legal classification and applicable requirements.
2. What is a raffle bond and what does it guarantee?
A raffle bond is a guarantee issued by an authorized surety institution, intended to support compliance with obligations relating to prizes, in accordance with the terms of the policy and the corresponding permit.
The Directorate General for Games and Lotteries requires a bond to guarantee the payment of prizes, accompanied by the basis used for its calculation, except for applicable legal exceptions.
Its purpose is to offer institutional support regarding a specific obligation:
that the prizes promised in the authorized draw are effectively delivered in accordance with the established conditions.
For example, a company might offer:
A new car.
Trips.
Electronic equipment.
Furniture.
Motorcycles.
Cash prizes, where permitted.
Other authorized goods.
The guarantee must be structured taking into account the specific rewards and obligations established for the transaction.
It is important to clarify that a bond does not replace the SEGOB permit nor does it guarantee the commercial success of the campaign.
Nor does it represent an authorization to freely modify its conditions.
It is an instrument that forms part of the structure for fulfilling the draw.
3. How is the amount of a bond for raffles determined?
This is one of the most important aspects for properly preparing the file.
The authority requires information on the structure of the awards and documentation that proves their value.
For prizes consisting of goods, consider valuations corresponding to their maximum new replacement value. In the case of real estate, appraisals may be required.
Let's consider a hypothetical example.
A company is organizing a promotional campaign with these prizes:
Prize | Amount | Estimated unit value | Total value |
New car | 1 | $500,000 | $500,000 |
Smartphones | 10 | $15,000 | $150,000 |
Total prizes | $650,000 |
The $650,000 represents the estimated combined value of the prizes in this example.
This does not mean that the bond premium is $650,000 nor that the bonded amount can be automatically set without reviewing the SEGOB criteria.
The amount to be guaranteed must be determined in accordance with the calculation bases, the conditions of the permit and the applicable requirements.
The issuance cost will be different from the guaranteed amount and will depend on the analysis and conditions of the institution.
That's why it's advisable to prepare the prize information before requesting a quote.
4. The documents you should prepare before applying for the guarantee
One of the most frequent mistakes is to start processing the deposit when the campaign is about to launch.
The early integration of the file helps reduce observations and facilitates the evaluation of the operation.
The documents that may be required include:
Corporate Information
Articles of incorporation and corporate documentation.
Powers of the legal representative.
Corresponding identifications.
RFC and tax information.
Documentation and information on partners or shareholders, where applicable.
Draw information
Promotion name.
Participation method and mechanics.
Dates and validity.
Geographic area.
Conditions for participation.
Procedure for determining winners.
Award delivery mechanism.
Means of disseminating and publishing results.
Awards Information
Detailed description.
Amount.
Make and model, where applicable.
Quotes for the maximum new replacement value.
Characteristics that must be included in the permit.
Information for the surety company
The institution may request additional documentation to assess the organizer's financial capacity and the backing of the operation.
Therefore, the regulatory documents and the documents required for the authorization of the bond will not always be exactly the same.
A complete file begins with a well-defined promotion.
5. How far in advance should the bond be prepared?
The General Directorate of Games and Lotteries indicates in its frequently asked questions that the permit application must be submitted 20 business days in advance of the start of the requested validity period .
That deadline is a reference for the submission of the procedure, not a promise that the authorization or the bond will be available in a certain number of days.
If the campaign has a fixed launch date, it is advisable to allow additional time for:
Prepare the file.
Get prize quotes.
Review the legal bases.
Integrate corporate documentation.
Manage the surety company's analysis.
Address any comments.
Complete the applicable regulatory and commercial procedures.
The recommendation is to involve Legal, Marketing, Finance and the surety advisor from the planning stage.
This way, requirements can be identified in a timely manner before committing to budgets and advertising dates.
6. Seven mistakes that can complicate a promotional giveaway
Error 1. Designing the entire campaign before reviewing the legal requirements
A promotion can be commercially attractive and, at the same time, need adjustments to comply with regulations.
First, regulatory feasibility must be reviewed. Then, the launch conditions are finalized.
Mistake 2. Believing that free giveaways never require permission
The absence of ticket sales does not automatically mean that a dynamic is exempt from authorization.
The modality and mechanics must be analyzed in accordance with the corresponding provisions.
Error 3. Failure to properly document the value of the awards
The authority may require quotes and specific features.
It is not advisable to use approximate values without supporting documentation.
Error 4. Presenting different information in different documents
The advertising, the terms and conditions, the permit application, and the bond must be consistent.
Differences in the award description, dates, or mechanics may generate observations and a need for corrections.
Error 5. Leaving the corporate file until the last minute
Insufficient powers, outdated documents, or incomplete information can complicate the integration of the file.
Error 6. Changing the prizes after organizing the draw
It is possible that the initially selected car may no longer be available or that the company may want to replace it with another model.
However, relevant modifications must be reviewed in accordance with the applicable procedure.
SEGOB has specific requirements for requesting changes to awards, including documentation justifying the modification and, where applicable, updating the guarantee.
Error 7. Forgetting that the obligation does not end when the winner is announced
Choosing the winner and announcing it publicly does not mean that all obligations have ended.
It is still necessary to hand over the prizes, keep the receipts and prove compliance to the authority in order to manage the settlement and the release of the guarantee.
7. What happens when the draw is over?
This stage receives less attention than it deserves.
Once the activity has been carried out, the organizer must comply with the delivery of the prizes and with the established documentary obligations.
The authority considers, according to the type of draw and the terms of the permit, deadlines related to the claim and delivery of prizes.
As a general reference, SEGOB establishes a period of 20 working days for the delivery of prizes in the cases described in its settlement requirements.
It also includes a subsequent period to demonstrate compliance with obligations to the Secretariat.
The documents that may be necessary include:
Proof of participation.
Publication of results.
Winner identifications.
Receipts of conformity.
Evidence of delivery.
Documentation related to unclaimed prizes.
Once compliance has been reviewed, the authority may decide on the settlement and, where appropriate, order the cancellation of the guarantee.
The bond should not be considered automatically released simply because the event has ended.
This follow-up is important to keep the file in order and properly close the transaction.
8. What happens if the winner does not receive the promised car?
Let's imagine that a company announces a raffle to promote its products.
The campaign is a success and thousands of consumers participate.
The winner of a new car is publicly announced on the day of the draw.
However, the organizer subsequently faced difficulties in delivering the vehicle in the agreed-upon condition.
This then gives rise to a potential breach of the obligations assumed.
Depending on the circumstances, administrative procedures, claims, or mechanisms related to the guarantees provided may be involved.
The existence of a bond provides institutional support subject to the policy conditions and the applicable regulatory framework.
This does not mean that payment is automatic or that any claim will proceed without review.
The important thing is to understand that the guarantee exists to support a specific obligation and not simply to satisfy a documentary requirement.
9. How much does a deposit for raffles cost?
There is no single price applicable to all promotions.
The cost may depend on various factors, such as:
Amount of the guaranteed obligation.
Draw details.
Warranty duration and conditions.
Applicant profile.
Surety company risk analysis.
Counter-guarantees that may be required.
Furthermore, it is important to distinguish between three concepts:
Value of the prizes: economic value of the goods or amounts committed.
Guaranteed amount: amount guaranteed according to the policy and applicable requirements.
Cost of the bond: amount paid for the issuance, subject to the institution's conditions.
Confusing these concepts can lead to inaccurate budget estimates.
The best way to determine the cost is to present the prize structure, the mechanics of the draw, and the relevant documents for an evaluation.
10. Why is it advisable to work with a specialized advisor?
Organizing a raffle can involve different areas simultaneously:
Marketing , which designs the promotion.
Legal , which reviews the bases and regulatory compliance.
Finance , which authorizes resources and analyzes obligations.
The surety company studies the transaction and determines the conditions under which it could issue the guarantee.
Having a bond specialist advisor helps coordinate the bonding component in advance.
An advisor can assist in identifying necessary information, reviewing the guarantee conditions, compiling the file, and submitting it to the relevant institutions.
This does not replace the management of the permit or the intervention of the legal advisors responsible for the promotion.
The goal is for the guarantee to be part of the planning, rather than becoming an urgent pending matter.
11. Checklist before announcing your next giveaway
Before launching a promotional campaign, check:
Is the dynamic correctly classified?
Was it determined whether it requires permission from SEGOB?
Are the conditions for participation defined?
Are the dates and validity period known?
Is the awards list final?
Are there any documented quotes?
Has the applicable warranty been reviewed?
Is the corporate file complete?
Do the terms, advertising, and regulatory information match?
Is there a plan for how the awards will be presented?
Is the termination and release procedure known?
Were other obligations applicable to the promotion reviewed, including those related to consumer protection?
Answering these questions before launch can help avoid costly last-minute adjustments.
Conclusion: A great promotion also needs a well-planned guarantee.
Giving away a car can be an excellent tool to attract customers, boost sales, and strengthen a brand.
But behind every successful promotion there must be a structure capable of delivering on its promises.
The bond for raffles is not simply another document in the file.
It is a guarantee intended to support obligations related to the delivery of prizes, under the legally applicable terms.
Therefore, before launching a campaign, it is advisable to review the mechanics, the permit, the prize structure and the viability of the guarantee.
A promotion generates expectations. Good planning helps turn those expectations into fulfilled commitments.
Is your company organizing a raffle or promotion with prizes?
At We Link we have over 30 years of experience in the surety sector and can help you assess the guarantee your operation requires.
We work with various surety institutions and assist you in reviewing the surety conditions, compiling the file, and the issuance process, subject to authorization.
If you're preparing a campaign, we can start by reviewing:
The method of the draw.
The structure and value of the awards.
The dates of the event.
The available documentation.
The corresponding surety requirements.
Before announcing the award, let's review how to guarantee its delivery.
Contact We Link
Tel. (+52) 55 9337 6539
This article is for informational purposes only. Permits, guarantees, and requirements depend on the type of lottery and applicable regulations. Authorization of the permit is the responsibility of the Ministry of the Interior (SEGOB), and the issuance of the bond is subject to review by the bonding institution.
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