Lottery Licence

A lottery scheme is any scheme that has the following three components:

1. a prize
2. a chance (to win the prize)
3. consideration or a fee

Lottery schemes are permitted by a licence under the Criminal Code of Canada to eligible charitable or not-for-profit organizations only. The Lottery Licence Policy Manual, Order in Council 1413/08, and Lottery Licence Terms and Conditions are part of the charity gaming regulatory framework which flows from the Criminal Code. 

The AGCO is the licensing authority for:

• bingo events (i.e., Special Bingo, Monster Bingo) with a prize board over $5,500
• super jackpot bingo events
• progressive bingo game events and loonie progressive games (Progressive Jackpot Raffle) 
• special occasion gaming event
• raffle lotteries for total prizes over $50,000
• electronic raffles
• break open tickets sold by organizations with a provincial mandate
• lotteries held in conjunction with another gaming event, including break open tickets at bingo events
• all lottery schemes conducted in unorganized territories
• lottery schemes at designated fairs or exhibitions

Order in Council 1413/08 provides municipalities with licensing authority for:

• Raffle lotteries for total prizes of $50,000 and under
• Bazaar lotteries which include: wheels of fortune with a maximum bet of $2.00, raffles not exceeding $500, and bingo events up to $500
• Bingo events, including table board bingo, with prize boards of up to $5,500
• Media Bingo events with prizes up to $5,500
• Break Open Tickets (BOTs) for local organizations

Determining an organization’s eligibility for lottery licensing is a complex process. Licensing officials must make eligibility decisions on a case-by-case basis by considering the specific circumstances of each organization. Licensing officials must also determine the eligible uses of lottery proceeds for each organization.

Licences are only issued for the following charitable reasons:

• The relief of poverty
• The advancement of education
• The advancement of religion
• Other charitable purposes that benefit the community

An organization must also demonstrate how it has carried out charitable activities that benefit Ontario residents in a way that is consistent with its mandate for at least one year.

To be considered eligible for a lottery licence, an organization:

• must have been in existence for at least one (1) year before being considered eligible for lottery licences
• must have a place of business in Ontario
• demonstrate that it is established to provide charitable services in Ontario
• must use proceeds for objects or purposes which benefit Ontario residents

To determine eligibility for a lottery licence, the Township Licensing Officer will review the following list of documents submitted by an organization that meets the above elements as outlined in the AGCO's Lottery Licence Policy Manual. Charitable registration with Revenue Canada or incorporation as a non-profit organization does NOT guarantee eligibility for lottery licensing. 

• Incorporation Papers (Letters Patent)
• Constitution and By-Laws
• Notification of Charitable Registration (Canada Customs and Revenue Agency)
• The most recent Registered Charity Information Return & Public Information Return, as submitted to Canada Customs and Revenue Agency
• Financial Statement for Previous Fiscal Year
• Detailed outline of all programs/services provided in the previous year and specific costs incurred in delivery
• Detailed outline of all programs/service currently provided and specific costs incurred in delivery
• The current operating budget
• Current Listing of the Board of Directors
• The proposed use of proceeds
• Any other information that will assist in determining the charitable nature of the objects and purposes. This could include an annual report, correspondence relating to its charitable number for income-tax purposes, and confirmation that it meets the reporting requirements of the Charities Accounting Act

Each application is unique. Determinations of eligibility will depend on the specific organization and its proposed use of proceeds. Review the Lottery Licence Application Procedure for more information.

Submit the following to the Township's Clerks Office: 

1. Appropriate application form (see types of lottery schemes section below)
2. Required documents as listed above in the eligibility section

Allow for a minimum of ten (10) business days for the Township to determine eligibility and process the application. Once it is processed, the Licensing Officer will contact the organization about the licence fee. The Township of North Dumfries' Council has approved a licence fee of 3% of the total value of prizes to be awarded, based on the Lottery license fees recommended by the AGCO.

The following list are common lottery schemes. For more information, see the AGCO website. 

Raffle

A raffle is a lottery scheme where tickets are sold for a chance to win a prize in a draw. The different types of raffle schemes are usually identified by the method of determining the winner. Raffle prizes may consist of merchandise or cash, or a combination of the two. Additional information for Raffles.

• Raffle Terms and Conditions
• Raffle Application Form
• Raffle Report Form

Paper Based 50/50 Draws

Tickets for paper-based 50/50 draws may only be sold during scheduled time periods, such as sporting events. Since the actual prize for each draw cannot be determined before the draw date, the organization must indicate the maximum possible prize on the licence application. The maximum prize must not exceed half the revenue available if all the tickets authorized by the licence were sold at the scheduled time. The licensee may only award prizes based on a 50/50 split of the gross proceeds for a given draw. The licensee must not award any additional prizes under a paper-based 50/50 lottery licence. The licensing authority may issue a licence allowing an organization to hold more than one paper-based 50/50 draw over a specified time period, provided that there is a separate draw for each scheduled time during the licence period.

Blanket Raffles

A blanket raffle licence allows eligible organizations to obtain a single lottery licence to conduct and manage more than one type of raffle event within a fixed time period (for up to a maximum of a one-year period), from one location, and in which the total value of prizes does not exceed $50,000.

The types of raffle events that a licensee may conduct under a blanket raffle licence include:

• stub draws
• elimination draws
• paper-based 50/50 draws
• meat spins/turkey rolls
• “name the raffle” lottery

• Blanket Raffle Application Form
• Blanket Raffle Report Form 

Amendments to a Raffle Licence

A licensee must conduct a raffle lottery in accordance with the licence application and terms and conditions. A licensee must not change its conduct and management of a lottery event unless it has obtained an amendment from the Township. If it is in the best interest of the public, a licensing authority may:

• issue a lottery licence amendment, or
• refuse a licence amendment request

Requests for licence amendments are:

• considered on a case-by-case basis
• there is no obligation to issue an amendment based on amendments issued under similar conditions
• not granted based solely on the expectation of loss
• not granted after ticket sales have begun
• not granted to lottery licences that have expired

Application for a Lottery Licence Amendment

1. The licensee must apply for a licence amendment in writing on the applicant organization's letterhead and signed by the individual(s) authorized to bind the organization.
2. An application for a lottery licence amendment must be made before any tickets have been sold under the licence. 
3. If changes to the lottery licence application are made before submission to the licensing authority, each change must be initialed, on each document, by the individual(s) with signing authority.
4. The licensing authority will only consider amending a raffle licence when it has discussed the reasons for the request with the licensee and established that the amendment is in the public interest.