HOW COBALT DOES SWEEPSTAKES

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Companies that offer sweepstakes and other games of chance in the United States and/or Canada use Cobalt to manage their online sweepstakes, as well as television and print media sweepstakes.

Cobalt guides clients through all the federal and state laws relevant to their sweepstakes. Helping clients put together an informed sweepstakes strategy not only keeps a promotion running smoothly, it also helps clients avoid the government penalties and PR fallout that could be imposed when a company unknowingly structures a sweepstakes to include characteristics of an illegal lottery.

Cobalt also assists clients in understanding the technical differences between certain kinds of sweepstakes, so they can achieve their marketing objectives. Cobalt guides clients in determining whether a standard sweepstakes promotion is sufficient, or whether they need to consider other forms of promotion, including "qualified entry sweepstakes," "coupon sweepstakes," or "automatic entry sweepstakes."

From start to finish, Cobalt helps clients navigate the technical issues, so there's more time for clients to focus on the marketing aspects. In addition to drafting the rules for any promotion, Cobalt attorneys take care of filing all paperwork, including specific state law requirements (such as posting bonds in New York, Florida, and Rhode Island, and registering sweepstakes in Arizona). We can even facilitate prize fulfillment for larger sweepstakes through our fulfillment partners.

RULES DRAFTING

Cobalt attorneys are responsible for the "fine print" for many online and paper media based sweepstakes and other games of chance. While many of the provisions are standard and included in all sweepstakes rules, we take care to review the specifics of clients' promotions, and draft rules that are appropriate, not "one size fits all."

RULES FILING

Some states require that the sweepstakes rules be filed with the state office of the attorney general. Cobalt makes all necessary filings for rules and winners' lists.

POSTING BOND

Clients who offer sweepstakes with a total aggregate prize value in excess of $5000.00 must post a bond in some states equal to the amount of the prize value. Cobalt takes care of all fillings and paperwork. With the exception of signing the bond, which must be done by the client the first time, no additional paperwork is needed. Cobalt works with agencies that can post bond in days. Moreover, because we are fully automated, we can access and update client accounts at any time.

FEES

Our clients have requested two billing methods. We offer our standard hourly rates for clients who prefer to do their own filings, but want rules drafted and/or reviewed. For our full service clients, we offer hourly and single-priced packages, which include all filing and associated state filing fees in all states that require them.

WINNERS LISTS

At the end of the promotion, we recommend, and in some instances the law requires, that winners be posted on your web site or other area. In some jurisdictions, a copy of the list must be filed with the state, and in those states where a bond was posted, a winners list must be filed to insure the return of the bond. We make certain that all winners lists are filed with the appropriate state entity and we facilitate the bond-return process.

Finally, Cobalt keeps all past client promotions saved as PDF files on a secure server, including winners lists, bond applications and all ancillary information. Should clients ever need to access it, we can provide it for them at a moment's notice.

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