N.Y. Comp. Codes R. & Regs. tit. 9 § 5605.7
In lieu of establishing an SPE and trust accounts as required by sections 5605.5 and 5605.6 of this Part, an operator or registrant may furnish a bond, with sufficient sureties, in an amount equal to the total value of all funds deposited by contestants (including any prizes and awards credited to contestant accounts) and sufficient to pay all claims including all prizes and awards offered. Such bond, if any, shall be in favor of the State of New York, which shall distribute, by the commission, such funds to contestants in the event the State collects from the surety. A copy of the surety bond shall be filed with the commission and shall be in a form approved by the commission. The monies secured by such surety bond shall at all times equal the total amount of outstanding funds deposited by contestants.
N.Y. Comp. Codes R. & Regs. Tit. 9 § 5605.7