Texas Promoter Bond – You Need Two
Since 1941, Texas legislature has required combat sports promoters to hold surety bonds (more commonly known as Promoter Bonds) with their licenses.
As a promoter of combative sports in Texas, you need to hold two bonds:
- a general license bond and
- a gross sales tax receipt bond
When you apply for your Texas promoter’s license, you will be required to obtain these bonds before you can be issued a license.
How Do The Bonds Work?
The Department of Licensing and Regulation requires combat sport promoters to maintain both a general license bond and gross sales tax receipt bond.
The general license bond guarantees that you, the promoter, will follow all rules and regulations of your license. It also guarantees you will pay people (time keepers, referees, etc) for their services.
If you fail to follow rules and regulations or fail to pay people for their services, someone can make a claim against your bond.
The gross sales tax receipts bond, on the other hand, only guarantees that all gross receipts taxes owed for promoted events will be paid.
Anyone can make a claim on either of your bonds.
If the surety company has to pay out on a bond claim, they will come to you for repayment. You are responsible for paying back every penny of a bond claim.
How Much Does a Texas Combative Sports Promoter Bond Cost?
In Texas, the bond amount for both bonds is $15,000.
You do not need to pay the entire $15,000 to get bonded. You will likely pay anywhere from 1-15% of the bond amount ($150 – $2,250) for your bond.
The rate you pay is based on your personal credit.
You only need to pay for your bond one time (not monthly).
The best way to see what you’d pay is to get a free quote:
Both the general license bond and the gross sales tax receipts bond, as well as your promoter license, are valid for one year.
After the one year is up, you will need to renew your bond which requires you to pay another annual premium.