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This Lottery Licensing Policy Manual (LLPM) contains the policies and procedures that municipal and provincial officials must follow to issue and administer charitable gaming licences in Ontario.
These policies reflect the mandate of the AGCO to regulate charitable lotteries to ensure they are conducted with honesty and integrity, and in the public interest.
For the purposes of this manual, “lottery” means a gaming event or scheme that is conducted by a charitable or religious organization or a non-profit group with charitable objects and purposes. The policies apply to raffles, break open ticket sales, charity bingo and one-time special occasion gaming events and bazaars run by these organizations.
The LLPM has been designed to ensure lottery licences are issued and administered on a consistent basis throughout the province.
The AGCO also uses the LLPM to communicate changes in the Registrar’s policies and in the regulatory structures for lottery licensing.
Printed versions of the LLPM should not be considered up to date. Before making any decisions regarding a lottery application or licence, users of this manual should refer to the AGCO website for any amendments to the legislation and any new terms and conditions and information bulletins as well as any recent revisions of the LLPM.
A glossary of lottery licensing terms is provided at the end of this manual.
Lottery licensing staff should read and become familiar with the full manual as well as the various terms and conditions and guidelines, which are all provided on the Charitable Gaming: Municipalities portal on the AGCO web site.
Licensees and applicants are advised to read the first three chapters of the LLPM as well as the chapter related to the lottery type they intend to conduct. They should also read the Lottery Licence Terms and Conditions, the terms and conditions for their lottery type and any additional documents that may relate to their lottery type. Get the most recent versions of all these documents from the Charitable Gaming: Charitable and Religious Organizations portal on the AGCO web site.
Raising funds through gaming contains a certain element of risk on the part of the charitable organization– lotteries should be viewed as a supplement or alternative to the organization’s other fundraising ventures: Lottery proceeds may not be the main source of fundraising for a charitable organization.
The lottery licensing policies in this manual were developed by the Registrar, based on authority and direction flowing from:
Each type of licensed lottery is governed by a specific set of rules known as “terms and conditions.”
In Canada, all authority to license gaming activity flows from provisions in the Criminal Code (Canada), which makes it possible for eligible charitable and religious organizations to conduct and manage lottery schemes under a licence issued by the appropriate provincial authority.
Based on the authority conferred by the Criminal Code, the Government of Ontario has passed an Order- in-Council 208/2024, delegating its authority to license charitable gaming events to:
The Registrar has the authority to license all types of approved lottery events. Municipal councils may license certain types of approved lottery events.
The responsibility for gaming in Ontario has been divided into three main areas: regulation, licensing of charitable gaming, and conduct and management.
The Alcohol and Gaming Commission of Ontario (AGCO) is responsible for regulating:
The Registrar as well as municipal councils may issue charitable gaming licences, as outlined in this manual.
The Ontario Lottery Gaming Corporation (OLG) is responsible for the conduct and management of:
Where a charitable or religious organization is licensed, it too may conduct and manage a lottery scheme.
The current regulatory framework is based on six key elements :
Eligible charitable and religious organizations may conduct and manage lottery schemes under a licence issued by the appropriate provincial authority under an exception to the Criminal Code (Canada) general prohibition on gambling.
In this manual the term “charitable” includes both “charitable and religious” organizations as referred to in the Criminal Code (Canada).
The Gaming Control Act, 1992 regulates the commercial sector of the charitable gaming industry. Among other things, the Act details:
The Lieutenant Governor in Council may make Regulations prescribing anything required under the Act. For example, the Regulations currently in force establish such things as exemption from registration, classes of registrants and terms of registration.
The Order-in-Council :
It also provides broad policies for the administration of lottery events and general terms and conditions for the conduct of lotteries.
The Order-in-Council does the following:
The Registrar issues a specific set of rules, known as the terms and conditions, to regulate each type of licensed lottery event. The terms and conditions provide detailed instructions for the conduct and management of licensed lottery events. For example, the terms and conditions govern:
The Registrar may impose additional terms and conditions on any lottery licence, as necessary. A municipal council may impose additional terms and conditions on any lottery licence it issues, provided they do not conflict with those of the Registrar. Licensees must observe all the terms and conditions of their lottery licence.
The Registrar may issue Standards and Directives that must be followed by licensees and registrants.
This Lottery Licensing Policy Manual (LLPM) contains the policies and some of the procedures licensing officers must use when issuing and administering lottery licences. The policies are derived from the legislation and regulations to address specific aspects of lottery licensing to ensure consistency throughout the province. The manual is updated to contain any policy matters addressed in relevant Information Bulletins, Standards and Directives.
The AGCO also uses the LLPM to communicate changes in the Registrar’s policies and in the regulatory structures for lottery licensing.
The AGCO was established under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996. Order-in-Council 208/2024 gives the Registrar authority to administer the lottery licensing provisions of the Criminal Code (Canada) for the Province of Ontario.
The Registrar’s areas of authority include such things as issuing registrations under the Gaming Control Act, 1992; the issuance, suspension and cancellation of gaming licences; conducting inspections; setting standards; requiring reporting for licensees; and setting fees and terms and conditions on licences.
Municipal councils have the authority to issue licences for most lottery events conducted in their communities, including:
As long as it does not contravene criteria established by the Registrar, a municipal council may develop additional criteria, through bylaws and policies, for making licensing decisions and administering lottery licensing in their municipality.
Municipalities must also:
A municipal council may refuse, suspend or cancel licences, in accordance with the Order-in-Council and the Registrar’s policies. The AGCO is available to assist the municipality in any compliance and investigation matters.
Municipalities that issue licences also must ensure that applicants are eligible for lottery licences (see Chapter 2); be fair and equitable when issuing licences; and remain satisfied that licensees continue to meet the requirements of the Criminal Code (Canada), the Order-in-Council and the terms and conditions of their licences.
The Registrar or municipality may suspend or cancel lottery licences where:
The Registrar also has the power to refuse to issue a licence for the grounds set out in section 5 of the Order-in-Council or to suspend or cancel a licence issued by a municipal council.
If an organization continues to conduct lottery events after its licence has been suspended or cancelled, the lottery events will be illegal pursuant to the Criminal Code (Canada).
See Order-in-Council 208/2024, as well as 3.4.1, “Suspending or cancelling lottery licences,” and 5.11.1, “Requests to cancel raffle licences.”
Each municipality has the responsibility to investigate any contraventions of the terms and conditions of a licence it issues. A municipality may request the assistance of the local police force or the AGCO.
Municipalities have the authority to:
In addition to the above, the Registrar has the authority to:
In order to ensure that lottery licensing is administered fairly and consistently, lottery licensing decisions must be guided by the following fundamental principles:
This chapter outlines the policies and procedures a licensing official must follow to determine:
To be eligible to receive a lottery licence, an organization must first have charitable objects and purposes that fall within one of the four classifications of charitability:
Determining an organization’s eligibility for lottery licensing is a complex process. The guidelines set out in this chapter cannot be considered independently of each other; a licensing official must consider all circumstances to determine which of the organization’s objects or purposes and activities fall within one of the four charitable classifications. It is not sufficient to look at an organization’s purposes to decide whether it qualifies as charitable: it is also necessary to look at the organization’s activities.
A licensing official may reference decisions made by the courts, the Canada Revenue Agency and Office of the Ontario Public Guardian and Trustee as a guide to eligibility decisions. However, registration under the federal Income Tax Act as a charitable organization does not confer automatic lottery licensing privileges. Similarly, approval of letters patent of incorporation by the Office of the Ontario Public Guardian and Trustee does not confer automatic lottery licensing privileges. Licensing officials must make eligibility decisions on a case-by-case basis, by considering the specific circumstances of each organization.
Licensing officials must determine the eligible uses of lottery proceeds for each organization by examining the charitable classification of the organization’s objects or purposes and activities. For example, an organization that has not demonstrated that it has an object that falls within the “relief of poverty” classification cannot use lottery proceeds to operate a food bank.
Some organizations have objects or purposes and activities that fall within more than one of the four charitable classifications. In this case, eligible uses of lottery proceeds may also fall within more than one of the four classifications.
This chapter is provided as guidance. It is not intended to provide definitive statements with regard to any organization that may apply for a lottery licence. It provides details regarding:
The examples are not exhaustive. They are provided to describe the principles a licensing official must use to determine the eligibility of an organization’s objects or purposes and activities.
Organizations must be continuously reviewed and reassessed to ensure continued eligibility. The examples used in this chapter reflect the current interpretation of what is eligible. It is the duty of licensing authorities to remain current.
To be eligible for a lottery licence, an applicant must qualify either as an eligible charitable organization or as a non-profit organization with charitable objects or purposes.
There is no general statutory definition of “charity” and “charitable.” Although there are many worthwhile activities and causes, not all are considered charitable. An essential and common element in the determination of what is charitable is the provision of “public benefit.” What is considered to benefit the public does not remain constant. It changes with the changing values and needs of society and reflects the social conditions of the time.
In order to determine which organizations are eligible for lottery licences, the Alcohol and Gaming Commission of Ontario (AGCO) uses the four charitable classifications described in the next sections. In order to qualify for a lottery licence, an organization must demonstrate that it exists to provide services in one of the four charitable classifications. In addition, an eligible organization must also meet all of the following criteria:
An organization may have objects or purposes that focus its activities towards a specific segment of the community, for example, Indigenous persons, senior citizens or people with physical or developmental disabilities. Such organizations may be eligible if their objects or purposes and activities fall within one of the four charitable classifications. A licensing official must assess the activities of the organization in order to determine whether the organization is eligible and, if so, within which of the four charitable classifications it falls:
(A) The relief of poverty
The “relief of poverty” classification includes organizations that assist the economically disadvantaged by directly providing goods, social services, programs or facilities. The financial and other assistance provided is intended to alleviate the effects of living in poverty.
Poverty must be considered in relation to current economic and social conditions. The provision of goods or services to relieve poverty is intended to ensure that individuals have a basic standard of living. Individuals do not have to be destitute in order to qualify for this assistance.
Food banks, soup kitchens and organizations that provide clothing, furniture and appliances are examples of these types of organizations.
See also “2.7.1. Policies: The relief of poverty”.
(B) The advancement of education
The courts have defined the “advancement of education” as:
Simply providing information does not meet this definition: significant training or instruction must also be offered.
To meet this definition, the instruction must be available to a wide section of the public and must not be restricted by any means. It is not necessary for an organization to provide instruction or training in a formal classroom setting, but its activities must improve human knowledge and provide a public benefit through instruction.
Teaching institutions and schools are examples of organizations that may fall within this charitable classification.
See also “2.7.2. Policies: The advancement of education”.
(C) The advancement of religion
The “advancement of religion” refers to:
To be eligible as a charitable organization in this classification, a group’s spiritual beliefs or faith must include an element of worship of a personal God, gods or deities. Fostering a belief in proper morals or ethics alone is not enough to qualify a group as an eligible organization in this classification.
The group’s activities must also include an element of public instruction and the promotion of spiritual teachings. Its activities must serve religious purposes for the public good. The group’s beliefs and practices cannot include anything the courts consider subversive, immoral or illegal.
Places of worship, such as churches, mosques, temples and religious congregations, are examples of these types of organizations.
See also “2.7.3. Policies: The advancement of religion”.
(D) Other charitable purposes beneficial to the community
This is the broadest classification and the most difficult to consider. An organization with a charitable purpose that does not fall under one of the first three classifications may be eligible in this classification. The organization’s activities must provide a public, not private, benefit.
The phrase “other charitable purposes beneficial to the community” has been interpreted to include activities that benefit the whole community, without discrimination, so that the purposes have a truly public character. This may include:
See also “2.7.4. Policies: Other charitable purposes beneficial to the community”.
In general, eligible organizations fall into one of two categories.
In order to be considered a charitable organization for the purposes of lottery licensing, an organization must have objects or purposes and activities that are exclusively and wholly charitable. A charitable organization cannot have a mixture of charitable and non-charitable purposes or activities.
Charitable organizations have a number of characteristics:
The Office of the Public Guardian and Trustee has supervisory responsibility for charitable organizations and their use of charitable funds. Charitable organizations must comply with the reporting requirements of the Charities Accounting Act and the ownership restrictions set out in the Charitable Gifts Act.
Charitable organizations may register with the Canada Revenue Agency. However, registration as a charitable organization for the purposes of the Income Tax Act does not automatically qualify an organization for lottery licensing.
Organizations that have a mixture of charitable and non-charitable objects or purposes may be considered to be “non-profit with charitable objects.” A non-profit organization with charitable objects is eligible to receive lottery licences if its charitable mandate falls within one of the four charitable classifications and it meets all the other relevant criteria.
Non-profit organizations have a number of characteristics in common with charitable organizations. However, non-profit organizations do not have the same level of restriction placed on their business activities and the public benefit that they provide.
If an organization’s application does not include documentation proving its status as a charitable organization, it should be considered against the eligibility criteria to determine whether it is a non-profit organization with charitable objects.
If a licensing official receives an application from an organization that appears to be a sub-group, “partner” or auxiliary of another eligible organization, the official must ask the following questions in order to determine the status of the two organizations:
If the comparison shows that the two organizations exist for the same purposes, the parent group may be licensed if it is an eligible organization. The sub-group, “partner” or auxiliary may only be licensed where the parent group chooses not to conduct lottery events and permits the sub-group, “partner” or auxiliary group to hold lottery licences on its behalf.
If two or more eligible organizations amalgamate, the resulting entity must be treated as one organization for lottery licensing purposes. For example, if two community service organizations that each have a break open ticket licence amalgamate, the new organization may have only one licence. When two or more eligible organizations amalgamate, licensing officials must complete a full eligibility review.
Eligible organizations that amalgamate must disburse the funds in their designated lottery trust accounts for the purposes approved by the licence. The funds may be disbursed after amalgamation. If the funds are not disbursed before amalgamation, the licensing authority must approve the disbursement of funds.
When an eligible organization amalgamates with an ineligible organization, the new organization may or may not be eligible for lottery licensing. Licensing officials must complete a full eligibility review before issuing any new lottery licences.
An eligible organization that amalgamates with an ineligible organization must disburse the funds in its designated lottery trust account before amalgamation, for the purposes approved on the licence. The licensee must notify the licensing authority of the disbursement.
Prior to the disbursement of funds the lottery licensing authority must approve any request to hold lottery proceeds in a designated lottery trust account past the date of amalgamation and must also give prior approval of any final disbursement that occurs after amalgamation.
An organization is ineligible for a lottery licence if:
Organizations ineligible for lottery licensing include:
The above list is not intended to be exhaustive. Every organization must be reviewed, based on the documents provided, since all organizations are unique.
Governments are political bodies established for administrative purposes. Their primary mandate is to govern, which is not a charitable object. Services provided by governments may provide a public benefit and, if provided by a charitable organization, may be considered a charitable activity. However, a government is not a charitable organization and is not eligible for lottery licensing.
When reviewing organizations that are associated with governments, licensing officials must determine the extent to which the organization is:
For example, conservation authorities established under the Conservation Authorities Act are not separate legally, administratively and financially from the government. Therefore, typically these types of organizations are not eligible for lottery licensing.
A licensing authority must never issue a lottery licence to a municipality or one of its administrative departments. Municipalities derive their powers from the Municipal Act or, in some cases, a constituting act. As entities established primarily for local administration, they are not given the power to carry out charitable objects or to conduct lottery schemes. Therefore, municipalities and their operating committees or agencies do not meet the definition of a charitable organization and do not qualify for licensing under Section 207(1)(b) of the Criminal Code.
When reviewing organizations associated with a municipality, a licensing official must determine the extent to which the organization is controlled by the municipality and whether the organization is separate legally, administratively and financially from the municipality.
Public libraries constituted under the Public Libraries Act are not separate financially and administratively from the municipality. Therefore, boards of public libraries established under the Public Libraries Act are not eligible for lottery licences.
Many agencies operate under legislation and receive government funding. To determine the eligibility of these organizations, a licensing official must review the legislation that sets out the organization’s mandate and its relationship to government. Whether the organization is separate legally, administratively and financially from government and the degree of control exercised by government over the organization will determine whether the organization is eligible for lottery licensing.
Once a licensing official has decided an applicant is eligible to receive a lottery licence, the licensing official must examine the intended use of lottery proceeds listed on the licence application.
In order to determine the eligibility of the proposed use of proceeds, a licensing official must review the organization’s programs and services.
As outlined in Section 2.1.0, an eligible organization’s charitable objects and purposes must fall within one of four classifications. The eligible uses of proceeds will vary by classification and by eligible organization. As such when determining what is considered an eligible use of proceeds for an eligible organization, the following factors must be taken into consideration:
Eligible uses of proceeds must be:
A licensing official must determine the eligible uses of proceeds on a case-by-case basis. To determine which of the organization’s ongoing costs are eligible, the licensing official should review the proposed budget against the organization’s stated mandate. Only those costs that relate directly to the delivery of its eligible programs should be approved as eligible uses of lottery proceeds.
In addition to using lottery proceeds for the direct delivery of its eligible programs, an organization may also use lottery proceeds to pay some of the administrative expenses of those programs. To be considered an eligible use of lottery proceeds, these expenses must be essential for the direct delivery of the organization’s charitable objects. The licensing authority must give prior approval to requests to use lottery proceeds for administrative expenses on a case-by-case basis.
The licensing official may limit the use of proceeds to only those expenses that relate to the direct delivery of programs.
The licensing authority must monitor the use of lottery proceeds to ensure they are used as approved, for expenses related to the direct delivery of the eligible charitable services, for the benefit of Ontario residents.
All proceeds raised from lottery licences must be used for a charitable object or purpose that directly benefits the residents of Ontario. The funds do not necessarily have to be spent in Ontario, but an Ontario resident or community must benefit. This policy applies regardless of the beneficiary’s status as a citizen of Canada. For example, refugees living in Ontario may be beneficiaries of programs set up for the relief of poverty in Ontario. However, lottery proceeds cannot be used to bring non-residents to Ontario to then benefit from lottery proceeds. Also, proceeds must be used to generate a charitable, not an economic, benefit.
The following examples are eligible uses of lottery proceeds spent out-of-province to benefit a project or resident of Ontario:
The following list provides some examples of projects that do not qualify:
Although many of these activities are worthwhile projects, they provide a direct benefit to individuals outside Ontario. The Order-in-Council limits the allowable use of lottery proceeds to charitable activities that provide a direct benefit to the residents of Ontario.
Eligible charitable organizations requesting approval to donate lottery proceeds to other eligible organizations must demonstrate that:
The same type of eligible charitable organization as described in Section 2.4.1(A)(i) may also in certain circumstances donate lottery proceeds towards goods or services for use by organizations that in themselves may not be considered charitable in nature, including those that are dependent upon municipal governments. In this instance it must be demonstrated that:
An example of an eligible charitable organization donating lottery proceeds towards goods or services for use by another organization that in itself may not be considered charitable in nature:
A service club such as a Rotary Club raises funds for the inclusion of a public computer workstation for a public library established by a municipality. Raising funds for the inclusion of a computer may constitute a charitable use of funds by the club provided it can be shown that the proposed use is over and above the basic services that would normally be provided by the library.
An example of an ineligible use of proceeds:
A service club wishes to donate lottery proceeds to purchase jackets for a men’s baseball league.
In some cases, an eligible charitable organization that meets the criteria set out in 2.4.1(a)(i) may purchase or donate funds towards the purchase of a non-core item for another organization. The recipient organization must use the item for a purpose that provides a public, not a private benefit.
Prior to the purchase, the donating and recipient organizations must enter into a trust agreement outlining their respective responsibilities. The agreement must include the following information:
This agreement is necessary to ensure:
An example of an eligible use of proceeds when a charitable organization donates funds towards a capital expenditure:
A service club raises lottery proceeds towards the purchase of a van for a publicly owned long- term care home to transport patients. The purchase of the van may be an eligible use of proceeds provided the service club can demonstrate that the purchase of the van is over and above the services that the long-term care home would normally provide.
Eligible organizations must provide very detailed information concerning their proposed use of lottery proceeds. Because many organizations do not have wholly charitable objects or purposes, it is sometimes difficult to determine whether a proposed use of proceeds can be considered a charitable purpose. In broad terms, proceeds may be used to offset the expenses that are integral to the charitable functions of the organization. These are known as “direct expenses.” A direct expense includes any expense that directly helps to fulfil the organization’s charitable mandate.
Organizations have costs that may be classified as direct or indirect expenses. A curling club that runs a youth program as a charitable function, in addition to its adult program, has costs that may be considered as direct or indirect depending on the program for which they are incurred. The cost of ice time necessary to deliver the youth program is eligible as a direct expense if it can be isolated from the cost for the adult program. If the cost of the ice time required for the youth program cannot be determined and isolated, it is not an eligible use of lottery proceeds.
Indirect expenses include the group’s general operating costs such as salaries, administration, rent, or utility expenses such as heat and hydro. Indirect expenses are not generally considered essential for the delivery of the charitable purpose and therefore may not be eligible uses of proceeds.
The licensing authority may approve these expenses if the applicant meets all of the following requirements:
Volunteer and/or staff training may be an eligible use of lottery proceeds. Generally, lottery proceeds may not be used to pay expenses associated with attending, organizing or running conferences or workshops. However, in certain circumstances conferences or workshops may constitute a charitable purpose.
In order to use lottery funds to attend, organize or run a training session, the organization must demonstrate that the training provides a significant charitable and community benefit related to an educational program. The following types of training may qualify:
If the conference or workshop is only for personal development or if it only benefits the membership of the organization, it does not constitute community benefit and cannot be funded with lottery proceeds.
The following types of conferences and training are examples that do not qualify as a charitable use of lottery proceeds:
The licensing authority must determine whether or not the conference or training constitutes a charitable purpose. The following questions will assist in that determination.
Unless the answers to the above questions clearly indicate that a public charitable benefit will result, the licensing authority must not grant the organization permission to use lottery licensing proceeds for the conference, workshop or training expenses.
An eligible charitable organization that conducts research as an integral part of its charitable mandate may apply for a lottery licence to fund the direct costs of that research. Research may be funded through lottery proceeds if it advances human knowledge and if the resulting advances provide a public benefit either through instruction (“the advancement of education”) or by improving the health and well-being of the residents of Ontario (“other charitable purposes beneficial to the community: health and welfare”).
The licensing authority may grant approval on a case-by-case basis, under the following conditions:
The cost of travel for staff, volunteers and individuals benefiting from the charitable activities of the organization may be an eligible use of proceeds. These costs must directly benefit residents of Ontario and must be considered integral to the organization’s eligible charitable objects or purposes and activities.
The following examples are eligible uses of lottery proceeds for travel costs:
In some cases, organizations may request approval to pay out-of-province travel costs. The organization must demonstrate that a direct benefit will be provided to the public of Ontario. If the travel provides only a private benefit, the travel costs are not eligible. A licensing official must determine the type of benefit provided on the basis of the organization’s charitable object or purpose and activity.
A licensing official must consider requests for approval to pay out-of-province travel costs with lottery proceeds on a case-by-case basis. For example, out-of-province travel to advance education, particularly for youth, is eligible.
On the other hand, out-of-province travel is not an eligible use of lottery proceeds for an arts or cultural organization. Arts and cultural organizations must provide a benefit directed towards the broader public of Ontario, not the individual members of the performing organization. When the performance is outside Ontario, the audience is not made up of Ontario residents. Therefore, the benefit of the travel is considered a private benefit directed to the individual performers. This also applies to school bands travelling out-of-province for the sole purpose of performing while travelling.
The courts have recognized that support to “the aged” (senior citizens) through programs that improve physical and mental health may be considered charitable in nature.
These types of programs may fall under the eligible charitable category of “relief of poverty” or “other purposes beneficial to the community” depending upon the activity. For example, programs that provide relief from loneliness and isolation of the aged, and improve their mobility and fitness may be eligible under “Other purposes beneficial to the community: Health and welfare.” A non-profit organization that is established to operate and maintain a senior citizens’ centre or seniors’ social club to provide recreation, cultural activities and other programs for senior citizens may also be eligible for licensing.
The licensing authority may grant approval on a case-by-case basis, under the following conditions:
An organization cannot use lottery proceeds for any purpose that was not approved on the original licence application, unless it obtains prior written authorization from the licensing authority.
To obtain an amendment to its proposed use of proceeds, an organization must submit a written request to the applicable licensing authority setting out the reasons for the requested amendment. The requested uses must be related to the direct delivery of the objects or purposes of the licensee. The licensing authority has the right to refuse to amend the approved uses of proceeds.
A proposed use of lottery proceeds is ineligible if:
Eligible organizations may not use the proceeds from lottery licences for:
This section provides an overview of the process to determine whether or not an organization is eligible for lottery licensing, and whether or not its proposed use of proceeds is eligible.
STEP 1: Determine the eligibility of the organization
If the organization’s objects and purposes are eligible, continue to Step 2. If not, the organization is ineligible for a lottery licence and the process stops here.
STEP 2: Determine the eligibility of the proposed use of proceeds
To evaluate the use of proceeds, ask the following questions:
If the answer to both questions is “Yes,” the applicant’s lottery application and some or all of its proposed uses of proceeds may be eligible for lottery licensing.
To be eligible for lottery licensing, an applicant must have an established organizational structure. The applicant must be a legal entity and must have a formal document that establishes the organization. However, incorporation, whether provincial or federal, is neither a prerequisite nor a guarantee that a licence will be issued. No one may use lottery proceeds to start up an organization.
In order to be eligible, an organization must:
The terms and conditions for each lottery licence set specific application requirements, which are summarized in the relevant licensing policy sections of this manual.
When an organization first applies for any type of lottery licence, or whenever a review of its eligibility is required, it must provide all of the following information and documents that apply to it:
The organization must also provide any other information that will assist the licensing official to determine the charitable nature of its objects, purposes and activities.
After the review has been completed, the licensing officer may require additional information to process the application. The organization must provide any information that is requested.
If any changes are made to the documents submitted, the organization must provide the licensing authority with the amended documents as soon as they are available.
Because organizations change, an organization that is considered eligible for lottery licensing must continue to provide the licensing authority with any amended documents as soon as they are available.
Organizations that receive lottery licences will be subject to periodic eligibility reviews.
In order to determine eligible uses of proceeds, the organization must set out in detail its proposed uses of proceeds and to which programs the proceeds will be applied. The organization’s proposed use of proceeds must be for charitable programs and the programs must be consistent with the charitable objects and purposes of the organization. These objects and purposes must be of a charitable nature and fall within at least one of the four charitable classifications listed in Section 2.1.0.
In addition to the policies for “Use of Proceeds” and examples of “Eligible Uses of Proceeds” provided throughout this chapter, the following guidelines may be used to evaluate and determine eligible uses of proceeds:
The licensing official must assess the applicant’s eligibility by asking the following questions. If the answer to any of these questions is “no,” the organization is ineligible.
Every applicant organization must have a document that establishes the organization, setting out the members’ common purpose and detailing how the organization will operate in order to achieve that purpose. Formal documents include letters patent, constitution, and memorandum of association. Informal associations that have not adopted formal written constituting documents are not eligible for lottery licensing.
The organization must demonstrate that the following items are included in its constituting documents:
The guidelines in this section are intended to help licensing officials determine:
An organization’s charitable classification determines its eligible uses of lottery proceeds. The four classifications are:
The lists of eligible uses below are not intended to be exhaustive. A licensing authority may approve other proposed uses, depending upon the specific mandate of the organization. Any eligible organization, regardless of its charitable classification, may be approved for other uses of proceeds, provided that those uses are:
When an application is approved, the application for the licence forms part of the licence itself. If the licensing authority does not approve all the requested uses of proceeds, the approved uses of proceeds and any restrictions must be specified on the licence when it is issued.
Licensees wishing to use proceeds for any purpose not requested on their original application must request a licence amendment and receive approval before using the proceeds for those purposes.
See also “2.4.0. Overview: Eligible use of proceeds”“2.4.1. Policies: Eligible use of proceeds”, “2.4.1(G) Amendments to the approved uses of proceeds” and “2.5.1. Policies: Ineligible use of proceeds” .
To be eligible in this classification, a charitable organization must meet all of the basic eligibility criteria set out in this chapter and must demonstrate that its programs and services assist those who are:
Examples of the types of organizations that may be eligible in this classification include:
With prior approval from the licensing authority, a charitable organization may use lottery proceeds to set up a fund to assist those in financial need. The fund must provide assistance to address a common need and must be available to anyone in the community who has that need. Approved uses of the fund may include the provision of short-term relief or a one-time payment to relieve an exceptional condition or circumstance (for example, floods that result in devastation to an Ontario community). More than one charitable organization may contribute to the fund, provided it falls within the charitable organization’s mandate. Payments must be made directly to the service provider/retailer.
The licensing authority may approve eligible organizations in this classification to use lottery proceeds for the direct delivery of services for:
To be eligible in this classification, an organization must meet all the basic eligibility criteria and restrictions on uses of proceeds set out in this chapter. Proceeds cannot be used to fund core programs or services. They must demonstrate that its programs and services:
Normally, the training or instruction provided will lead to a recognized degree, diploma or certificate.
Eligible charitable organizations must demonstrate that:
Education for the professional development of a person or group (such as training courses for teachers, lawyers and nurses) is not an acceptable use of funds in this classification.
An organization that provides a program or curriculum that is contrary to the laws of Ontario or Canada or international law is not eligible for lottery licensing.
Examples of the types of organizations that may be eligible in this classification include:
In the case of schools, the lottery licensing applicant must be the school itself, not a class or department within the school. However, parent/teacher associations or other groups may also be eligible for lottery licensing, provided that they:
Only one related eligible organization may be licensed at any one time to fund the same educational purpose, school, program or governing body. Therefore, the school and its parent/teacher association may not both hold lottery licences. The parent/teacher association is only eligible for lottery licensing if the school determines that it will not raise funds through charitable lotteries.
School councils required by the provincial government are not eligible for lottery licensing.
Proceeds raised from lotteries cannot be used to fund core programs or services. The definition of core programs or services depends on what has been historically provided by the individual school and what is mandated by the provincial government. Additionally, eligible uses may vary between boards of education and schools in the same community.
The licensing authority may approve eligible organizations in this category to use lottery proceeds for the following purposes, so long as they are not historically provided by the organization or mandated by the provincial government:
Schools may only use lottery funds to purchase non-core services, items or equipment as approved by the lottery licence. Schools may not use lottery proceeds for the purchase, construction or renovation of facilities or buildings or to purchase other capital assets, such as school buses.
The lottery proceeds raised must be used for the overall benefit of the school. For example, lottery proceeds raised for athletic programs must be used to support all representative sports teams within the school, not just selected teams.
Schools may receive donations of lottery proceeds raised by eligible organizations for approved uses. In some cases, an eligible organization may purchase or donate funds towards the purchase of a non-core item that has not historically been provided by the school.
Prior to a capital expenditure, the board and the donating organization must enter into an agreement outlining their respective responsibilities. This agreement must include the following information:
This agreement is necessary to ensure:
Lottery proceeds may be used to establish or support scholarship or bursary funds for educational purposes, under the following conditions:
A scholarship fund that allows only a limited number of applicants, such as the children of members of a small service club, to apply would be considered too narrowly focused. Lottery proceeds may not be used for this purpose.
Scholarships or bursaries for the development of established professionals are also ineligible.
The “advancement of religion” refers to promoting the spiritual teachings of a religious body and maintaining the doctrines and spiritual observances upon which those teachings are based.
To be eligible in this classification, an organization must meet all the basic eligibility criteria set out in this chapter and must demonstrate that its programs and services assist in the delivery of religious services and programs to the community. Additional objectives of religious organizations usually include support of the poor, sick and destitute as well as a host of other charitable objectives. In order to be eligible, an organization must demonstrate:
Activities that advance religion may include:
Examples of the types of organizations that may be eligible in this classification include:
Religious organizations may use lottery proceeds to provide direct benefits only to the residents of Ontario.
The licensing authority may also allow religious organizations to use lottery proceeds to provide programs falling within other classes of charitable purposes, such as the relief of poverty and the advancement of education, as long as these are included in the objects or purposes of the organization.
An organization that attempts to influence public opinion or actions on political issues is not advancing religion in the charitable sense. Therefore, advocacy, self-help groups and groups dedicated to the political, personal and financial advancement of their members are not eligible organizations in this category.
The licensing authority may approve eligible organizations in this classification to use lottery proceeds for the following purposes:
In addition to meeting all the basic eligibility criteria set out in this chapter, an organization may be eligible under this classification if one of its main objects is a charitable purpose beneficial to the community and does not fall within one of the first three classifications.
An organization must have a purpose that provides a public benefit, but this alone is not enough to qualify it as charitable. To be eligible in this classification, an organization must demonstrate that it provides a broad public benefit directed toward an identifiable segment of the community or a significant portion of the community.
An eligible organization in this classification may also have objects or purposes that are not charitable, as long as those objects are secondary to the main purpose, which must be charitable. The organization must be operated on a non-profit basis.
For administrative purposes, eligible organizations with other purposes beneficial to the community have been divided into the following six categories:
The promotion of voluntarism, in itself, is not eligible for lottery licensing. Advertising for volunteers, matching individuals to volunteer placements and promoting volunteer activity are not eligible uses of lottery proceeds. However, volunteer training and support and providing direct charitable services, such as counselling for those in need, are eligible uses of proceeds.
See also “2.4.0. Overview: Eligible use of proceeds”, and “2.5.0. Overview: Ineligible use of proceeds”
To be eligible in this category, an organization must meet all the basic eligibility criteria set out in this chapter and demonstrate that:
Examples of the types of organizations that may be eligible in this classification include:
A licensing authority may approve eligible organizations in this category to use lottery proceeds for the following purposes:
To be eligible in this category, an organization must meet all the basic eligibility criteria set out in this chapter and demonstrate that:
Eligible organizations may provide programs dedicated to:
Examples of the types of organizations that may be eligible in this classification include:
The following are some examples of what a licensing authority may approve as eligible uses of lottery proceeds:
To be eligible in this classification, an organization must meet all the basic eligibility criteria set out in this chapter and must demonstrate that it provides programs and services to enhance health and fitness through organized, competitive physical activity.
An organization must demonstrate that:
Three types of groups are eligible in this category:
Only Ontario residents competing in amateur sports as individuals or as members of teams that are part of a recognized sports organization may benefit from lottery proceeds.
For the purposes of lottery licensing, the term “youth” refers to anyone under the age of 18. The majority of individuals (over 50%) benefiting from programs offered by organizations in this category must be under 18 years of age at the start of the sporting season. Adult teams and leagues are not eligible.
To be eligible in this category, an organization must meet all the basic eligibility criteria set out in this chapter and must demonstrate that it is:
Examples of the types of organizations that may be eligible in this category include:
Ontario associations for representative teams are eligible for one licence per type of gaming event, per team in a municipality at a time, provided that:
If a non-profit club runs both youth and adult programs, only direct expenditures for the youth programs may be considered as eligible uses of lottery proceeds. In order to be eligible, the club must be able to separate the costs of the youth and the adult programs in the budget and the financial tracking system.
Most of the individuals benefiting from programs offered by organizations in this category must have a demonstrated physical, mental or developmental disability.
To be eligible in this category, an organization must meet all the basic eligibility criteria set out in this chapter and must demonstrate that it is:
Examples of the types of organizations that may be eligible in this category include:
Adult amateur sports organizations (where most of the players are 18 and over) representing Ontario or Canada in the Olympics, the Pan American Games or the Commonwealth Games may be eligible to receive lottery licences.
To be eligible in this category, an organization must meet all the basic eligibility criteria set out in this chapter and must demonstrate that it is:
Only Ontario residents may benefit from lottery proceeds, regardless of whether the organization is representing Ontario or Canada.
The types of organizations that may be eligible in this category include teams representing Canada in the Olympics, Pan American Games and Commonwealth Games, but lottery proceeds may only be directed towards the expenses related to Ontario residents.
In order to be eligible for lottery licensing, adult sports organizations that do not represent Ontario or Canada in competitions must fulfil some other purpose beneficial to the community. This means that an organization must demonstrate that it has a charitable mandate beyond its adult sports purpose. Lottery proceeds may only be used for the charitable objects of the organization, not for any adult sports objective.
The following types of organizations are not eligible to receive lottery licences:
A sports organization must provide detailed information regarding its proposed use of lottery proceeds. The licensing official must consider the proposed use of proceeds on a case-by-case basis.
The licensing authority may approve eligible organizations in this category to use lottery proceeds for the following purposes:
Lottery proceeds may be used for travel and transportation costs for sanctioned out-of-town tournaments or competitions. These costs may include meals, accommodation, airline tickets, bus rental and other reasonable expenses incurred by the players, and a reasonable number of coaches and chaperones for any youth participants. Please note that third-party commercial receipts must be provided for travel.
Mileage costs for personal vehicles are not permitted.
The organization must provide the following information with its licence application:
Except in unusual circumstances, lottery proceeds may not be used to fund travel costs associated with out-of-province training. A sports organization requesting approval for such costs must demonstrate that:
See also “2.4.1(E) Travel costs”.
Coaching fees (salaries) are considered an indirect expense. However, it is recognized that in certain sports, coaching plays an important role in the development of the players. Therefore, coaching fees are considered eligible uses of lottery proceeds provided the following conditions are met:
Sports organizations may also use proceeds for training or to develop coaches themselves to the level of ”Community Sport” certification under the National Coaching Certification Program.
If the presence of officials and referees is integral to the proper conduct of the sport, the following types of organizations may use lottery proceeds to pay their fees:
The fees must be based on amounts authorized by the league or association and only be paid to individuals assigned by the league or association to officiate at the event.
Adult amateur sports organizations representing Ontario or Canada may not use lottery funds to pay officials or referees.
The following costs are not considered eligible uses of lottery proceeds for any amateur sports organization:
In the case of sports organizations, administration costs such as administrators’ salaries, tournament and team registration fees, office expenses and utilities are considered to be indirect expenses that are not essential to the delivery of the sports program. Since these administration costs are not considered charitable, they cannot be paid using lottery proceeds.
Organizations that support youth programs and services for youth that enhance human development, civic responsibility and pride in the community may be eligible for lottery licensing in this category.
An organization must meet all the eligibility criteria set out in this chapter and demonstrate that:
Examples of the types of organizations that may be eligible in this category include organizations formed to:
Cadet organizations associated with the Armed Forces, such as Air Cadets, may be eligible to receive lottery proceeds. In some circumstances cadet organizations may be controlled by the Provincial Command Provincial Command of the Royal Canadian Legion and may therefore not be constituted as separate legal and administrative organizations. The eligible organization may be the Provincial Command. In those cases, the Provincial Command must apply for and hold the lottery licence on behalf of each cadet group.
The licensing authority may approve eligible organizations in this category to use lottery proceeds for the following purposes:
To be eligible in this category, an organization must meet all the eligibility criteria set out in this chapter and demonstrate that:
Examples of the types of organizations that may qualify in this category include those providing:
Member organizations of the Ontario Federation of Snowmobile Clubs may be eligible provided that:
The licensing authority may approve eligible organizations in this category to use lottery proceeds for the following purposes:
Eligible member organizations of the Ontario Federation of Snowmobile Clubs may only use lottery proceeds for education and safety programs approved by the Registrar. Proceeds cannot be used for other activities, such as trail grooming and maintenance.
In some cases, an eligible charitable organization that meets the criteria set out in Section 2.4.1(a)(i) may purchase or donate funds toward the purchase of a non-core item for another organization. The recipient organization must use the funds for a purpose that provides a public benefit and is an eligible use of proceeds.
Prior to the purchase, the donating and recipient organizations must enter into an agreement outlining their respective responsibilities. The agreement must include the following information:
This agreement is necessary to ensure:
Community service organizations are established to provide funds to other organizations that carry out charitable activities for the benefit of the community. To be considered eligible for lottery licensing, a community service organization must have an object or purpose that allows them to make donations to eligible organizations. A community service organization must include a statement of how it intends to use the proceeds with its lottery licence application.
Community service organizations are divided into three categories:
Service clubs are generally set up to perform activities and undertake projects that benefit eligible charitable organizations or to operate programs that provide a direct charitable benefit to the public.
To be eligible for lottery licensing, a service club must meet all of the basic eligibility criteria set out in this chapter.
Each branch or chapter of larger service clubs, such as the Rotary or Lions clubs, which have regional, provincial or national mandates, may be eligible, providing the branch:
Examples of the types of organizations that may be eligible in this category include:
Eligible uses of lottery proceeds by service clubs
The service club must give the licensing authority detailed lists of how it proposes to use the lottery proceeds. The service club may only donate lottery proceeds to an organization that is itself eligible to receive a lottery licence and has been approved by the licensing authority. The service club must ensure that donated lottery proceeds are used for purposes consistent with the receiving organization’s mandate and approved uses of funds.
The licensing authority may approve service clubs to use lottery proceeds for the following purposes:
Ineligible uses of lottery proceeds by service clubs
In addition to their charitable objects and purposes, service clubs have a mandate to provide membership- oriented activities. These activities provide a private, not a public, benefit to the members of the service club. Membership-oriented activities do not qualify as charitable and service clubs may not use lottery proceeds for these purposes.
The following types of costs do not qualify as eligible uses of proceeds for service clubs:
Service club building funds
If a service club owns a building that it allows charitable organizations to use free of charge, it may use lottery proceeds for a building fund. The building fund may be used to renovate the sections of the building made available to charitable organizations in accordance with the policies for building funds outlined in this chapter. The service club must demonstrate that the public benefit goes beyond the occasional usage by outside charitable groups.
Many of the objects and purposes of the Royal Canadian Legion and similar veterans’ service organizations are similar to those of general service clubs. Therefore, for lottery licensing purposes, the branches and commands of the Royal Canadian Legion and similar veterans’ service organizations are treated in the same manner as general service clubs, and the accepted uses of proceeds for service clubs also apply.
The Royal Canadian Legion and its branches may use lottery proceeds for:
Eligible uses of lottery proceeds
The licensing authority may approve the Royal Canadian Legion to use lottery proceeds for the following purposes:
(See also “2.4.1(G) Amendments to the approved uses of proceeds”.)
Royal Canadian Legion building funds Guidelines:
A number of Royal Canadian Legion branches provide their facilities free of charge to eligible charitable organizations. At times, the branches may need to use lottery proceeds to construct new buildings or to cover the costs of renovations. In addition to the general policies set out in “2.8.1. Policies: Building funds”, the Registrar has established supplemental building fund policies that apply to the Royal Canadian Legion and its branches. In addition to the usual approval from the licensing authority (who has the final decision), a branch’s proposal to use lottery proceeds for building funds must be reviewed and approved by the Ontario Provincial Command of the Royal Canadian Legion.
Eligibility criteria
The licensing authority may grant approval for a branch of the Royal Canadian Legion to use up to a maximum of 50 per cent of net lottery proceeds to cover the capital costs of construction, repair or the leasehold improvement of branch buildings. Capital repairs do not include the normal painting, decorating (interior and exterior) and service calls that are included in the percentage of net lottery proceeds allowed for general maintenance of the building.
The licensing authority may approve a building fund under the following conditions:
Approval process
Prior to using lottery proceeds for renovations or the construction of new buildings, branches must comply with the procedures set out by the Ontario Provincial Command of the Royal Canadian Legion. In addition, branches must follow the general policies for building funds. (See “2.8.1. Policies: Building funds” for further information.)
If the branch does not comply with this approval procedure, the licensing authority must refer the matter to the Administrative Committee of the Ontario Provincial Command for any action it may deem necessary.
This policy also applies to Legion branches in northwestern Ontario. However, they are not required to obtain approval from the Ontario Provincial Command, since they do not fall under its jurisdiction, but they must follow the general policies for building funds. (See “2.8.1. Policies: Building funds” for further information.)
Application requirements
If a branch proposes to use lottery proceeds for building fund purposes, it must supply the following information with its licence application:
The Ontario Provincial Command may request additional documentation to support building fund proposals. The Command must make these documents available to the licensing authority upon request.
Eligible uses of proceeds
Once the licensing authority has approved the use of proceeds for a building fund, the branch may use up to 50 per cent of net lottery proceeds for the following building fund purposes:
Please note that lottery funds may be used to renovate the portions of a building used by the public but not the members’ lounge.
Ontario Provincial Command: Construction and renovation procedures
Each branch must comply with the procedures set out by the Ontario Provincial Command of the Royal Canadian Legion for branch construction. These procedures are outlined below:
Prior to purchasing property or engaging the services of an architect or consultant, the branch must present a motion in a notice mailed to each member.
The notice must include:
A branch cannot apply for a lottery licence to raise funds to purchase property or hire an architect and/or consultant until this motion has been approved.
Once the branch has approved the motion and the Provincial Command has granted permission, the branch may engage the services of an architect and/or consultant and obtain an estimate for the proposed plans.
When the branch receives the estimate, it must present a Notice of Motion to a General Meeting. The Notice of Motion must include the following details:
The branch must mail a copy of the Notice of Motion and the date of the General Meeting at which it will be considered, to each member in good standing. The branch must also send a copy of each Notice of Motion and certified copies of the minutes of the General Meeting at which the motion was approved, to the Provincial Command.
The branch must obtain prior written approval from the Ontario Command for each expenditure from the building fund in excess of $5,000 during the course of the fiscal year. The branch must send a copy of this approval to the licensing authority.
The Royal Canadian Legion branch must submit regular financial reports as per the terms and conditions of the lottery licence.
Royal Canadian Legion: Selling property purchased with a building fund
The branch must obtain prior approval from the licensing authority before selling or mortgaging any property acquired or renovated through a building fund made up of lottery proceeds. The branch must prepare a document outlining the value of the lottery proceeds applied to the building fund.
When the property is sold, the branch must calculate the value of the lottery funds contributed to the building fund and must direct that amount of money to other eligible charitable organizations in the community. The branch may reduce this amount by the amount of money the branch could have made on an annual basis by renting the facility instead of providing it free of charge (foregone revenue).
Please note that if the sale occurs after the obligation has been reduced to zero, the branch does not have to distribute any funds from the sale of the property to charitable organizations in the community.
Service Clubs, and the Royal Canadian Legion and similar veterans’ service organizations are permitted to use lottery proceeds for general operating and maintenance costs in certain circumstances.
General operating and maintenance costs may include:
Eligible use of proceeds for general operating and maintenance costs may include the following:
The licensing authority can use the examples that follow to assist in determining the amount allowed for building maintenance costs:
Example 1 (For calculating operating and maintenance cost requests above 20% of net proceeds)
* Mortgage payments are not an eligible building maintenance expense. For claiming rent, a copy of the rental agreement must be submitted.
+ This expense is for minor repairs or general maintenance to the building. Organizations wishing to use lottery proceeds for renovation projects, or capital expenditure costs must submit the required documentation — see “2.8.1(B) Approval process for building funds“.
* The licensing authority must review the list of organizations using the facility. As not all groups using the facility may be charitable, the percentage of use of the facility is determined by those charitable/religious organizations which would be eligible for lottery licensing themselves. If the licensee provides their own charitable programs and services, this usage of the building should also be included in this list.
Example 2
Building maintenance cost per year: |
|
$10,000 |
% of building available for public use (excluding offices & members lounge) |
50% |
($5,000) |
Cost of maintaining public portion of hall |
|
$5,000 |
Number of days per year used by charitable groups (for example, assuming 1 Group per day @ 91 days out of 365 days = 25%) |
|
x25% |
Amount allowed for building maintenance per year: |
|
$1,250 |
Many public, corporate and private sector places of employment conduct and manage lottery events amongst their employees as part of their annual fundraising campaigns on behalf of the United Way and/ or Federated Health (UW/FH). The funds raised from these lotteries are donated to the UW/FH, which, in turn donate these proceeds to eligible charitable organizations that provide a direct charitable benefit to the community.
Public, corporate and private sector places of employment are permitted to conduct and manage lottery events at their places of employment when overseen by the UW/FH and must obtain a lottery licence in order to comply with the Criminal Code (Canada).
Lottery licences will only be issued for events to be held during the official fundraising campaign period of the UW/FH.
Licensing policies for UW/FH
In addition, the following policies apply to all lottery licences issued to UW/FH employee fundraising committees:
The licensing authority must handle requests from organizations wishing to use lottery proceeds for building or renovation projects in the same manner as any other request for the use of lottery proceeds. The organization must show that the building fund constitutes an eligible purpose.
The licensing authority may approve an eligible organization to use up to a maximum of 50 per cent of net lottery proceeds for the capital costs of construction, repair or the leasehold improvement of real property including land and buildings, if:
The following types of construction or renovation may qualify:
The licensing authority may approve a building fund under the following conditions:
Where the building is not used solely for eligible purposes, the maximum amount of lottery proceeds approved for the building fund must be proportional to the percentage of time the building is used to provide a public charitable benefit.
If the applicant organization wishes to use lottery proceeds for the renovation or construction of a building, it must submit the following information to the licensing authority for review prior to, or with the licence application:
All of these criteria will not be relevant in all cases. The licensing authority will base its decision on whether the building/facility will be of benefit to the community or a charitable group, and what happens to the proceeds if the building/facility is sold.
Please note that general maintenance costs are not eligible as part of a building fund.
The licensing authority may grant an organization permission to use a specific amount of proceeds from any licensed lottery event for a building fund. A maximum of 50 per cent of the net lottery proceeds may be allocated to the building fund, once approval has been given for the fund. The licensing authority must approve a specific amount of proceeds, rather than a percentage, and must specify the period of time over which funds may accumulate in the building fund. The period of time will be limited and reasonable and must not exceed two years without further approval.
The eligible organization must:
The organization must obtain prior approval from the licensing authority in order to sell or mortgage any property acquired or renovated through a building fund made up of lottery proceeds. The organization must also prepare a document outlining the value of the lottery proceeds applied to the building fund and obtain prior approval on how the proceeds will be distributed upon the sale.
When the property is sold, the organization must calculate the value of the lottery funds contributed to the building fund and must direct that amount of money to other eligible charitable organizations in the community.
This chapter contains explanations of policy on the following subjects:
In simple terms, a lottery scheme may be defined as any scheme that has the following three components:
Therefore, a lottery scheme exists if money is paid or some other consideration is given for a chance to win a prize.
There are many types of lottery schemes for which licences are not available. The licensing authority will confirm whether or not a licence is available for a proposed lottery scheme. If the proposed event is one for which a lottery licence is available, the organization must apply for a lottery licence. The organization is responsible for ensuring that all its schemes are operated legally.
Licences are available for certain types of games of chance and games of mixed chance and skill.
Games of chance, sometimes called “mechanical games,” do not involve any element of skill. Games of chance are the most popular form of gambling. There are hundreds of these games, including raffles, bingo, wheels of fortune and break open tickets.
In games of skill, the element of chance is virtually non-existent. Checkers, chess, bowling, tennis, golf and all sports contests are examples of games of skill.
Games of “mixed chance and skill” combine both elements and include most games played with cards. Blackjack is an example of a game of mixed chance and skill.
Organizations may conduct contests resembling lottery schemes to promote their products and increase sales. Although there is no formal definition of a contest, contests are often operated by commercial for- profit organizations or their representatives. These organizations cannot be licensed to operate a lottery because they are not charitable. Therefore, the company must ensure that the contest does not fall within the definition of a lottery scheme.
Prior to conducting a contest, organizations may first wish to:
Only those games for which a licence is available from the Registrar may be licensed.
The Criminal Code (Canada) prohibits the following lottery schemes:
In Three-Card Monte, the dealer shows three cards (usually aces), two red and one black, then shuffles them face down. The player tries to guess the location of the black ace. A variation of the game is played with three cups or walnut shells and a pea.
A coin table is enclosed by a rail and has a highly polished square surface, with many small, coloured circles. The players toss pennies or other coins from outside the rail onto the layout and receive a prize if the coin lands inside the circle.
A punchboard is made of pressed paper full of holes each containing a printed slip. Players pay to punch out a slip, and win a prize if the slip has a lucky word or number.
The Registrar will not issue licences for the following lottery schemes. This is not an exhaustive list; any new lottery schemes should be proposed to the Registrar for review before any further action is taken.
A licensee must not allow any person apparently under the age of 18 to participate as a player in any game of chance, or the age of 19 if alcohol is included in the prizes.
Advertising is an integral part of the conduct and management of lottery schemes, therefore the licensee is responsible for the design, placement and cost of advertising.
Licensees must consult the licensing policies for each type of lottery and the terms and conditions of their licences for specific advertising and promotion restrictions.
See also “9.7.1. Bingo advertising and promotion”. For pooling bingo halls operating under the Bingo Revenue Model, see “10.10.1(d) Marketing fund”.
All content, including graphics, used to advertise and promote licensed lottery events must comply with the following guidelines:
There are areas of the province without a local municipal council. These include unorganized territories, First Nations communities and Crown lands.
For the purposes of lottery licensing, an unorganized territory is any geographic area without a local municipal council. Eligible organizations in unorganized territories must apply to the Registrar for a lottery licence.
In addition, only the Registrar may issue licences for events to be conducted in First Nations communities (except in the case of First Nations with delegated authority) and on Crown lands, such as military bases.
Prior to making a decision to suspend or cancel a lottery licence, the licensing authority must consider the implications, with regard to the integrity of the gaming event and public expectations. The licensing authority may suspend or cancel a licence if it is in the public interest to do so.
If a licence is cancelled or suspended for an indefinite period, the licensee must refund all ticket purchases. In appropriate circumstances, the licensing authority may allow the licensee to complete the event, then take administrative action after all prizes have been awarded. For example, the licensee’s future licence applications may be denied, or licences may be issued with additional terms and conditions.
If the licensee believes that it cannot fulfil the terms and conditions of its licence, it may apply to the municipality or the Registrar to have its licence cancelled. The licensing authority must not cancel a licence if the licensee has requested the cancellation solely on the basis of insufficient sales. The licensee must show that cancellation of the licence is in the public interest. Should the licensing authority grant the request, the licensee must refund all ticket purchases and wind down the event in an orderly manner.
See also “1.5.1. Refusing, cancelling or suspending a licence” for further information.
The following policies apply to the HST:
For details on specific circumstances and any applicable taxes, please contact the appropriate financial authority.
For pooling bingo halls, please see also “10.11.1. Application of Harmonized Sales Tax (HST)”.
Licensees may employ Gaming-Related Suppliers and Gaming Assistants to provide the goods and services and professional assistance necessary for the conduct and management of lottery schemes.
The Gaming Control Act, 1992 and its Regulations govern the commercial sector that supplies the charitable gaming industry. Gaming-Related Suppliers and Gaming Assistants must be registered under the Act. Sections 2–10 of Regulation 78/12 define classes of Gaming-Related Suppliers and Gaming Assistants that require registration. These include:
Category 1 Gaming Assistant—An individual who is employed in the conduct, management or operation of a lottery scheme or in the operation of a charitable gaming site and who, in the opinion of the Registrar, exercises a significant level of decision-making authority or has significant supervisory or training responsibilities with respect to the lottery scheme or the site.
Category 2 Gaming Assistant—An individual who is employed in the conduct, management or operation of a lottery scheme or in the operation of a gaming site and who, in the opinion of the Registrar, does not exercise a significant level of decision-making authority or have significant supervisory or training responsibilities with respect to the lottery scheme or the site.
Gaming-Related Supplier—A person who manufactures, provides, installs, tests, maintains or repairs gaming equipment or who provides consulting or similar services directly related to the playing of a lottery scheme or the operation of a gaming site.
Seller—Someone who is permitted to sell break open tickets on behalf of a licensed charitable or religious organization.
Operator—A person who operates a gaming site.
Before issuing a licence to an eligible organization that plans to use the services of a Gaming-Related Supplier, the licensing authority must ensure that the Gaming-Related Supplier’s registration is valid. Municipalities can verify the registration status of a Gaming-Related Supplier by requesting a copy of the registration certificate.
If the registration certificate has expired, but the supplier has applied for a renewal and paid the renewal fee prior to expiry, the registration will be deemed to have been renewed until the Registrar grants the renewal or registration is revoked. The supplier must provide proof that the renewal application was made and the fee was paid prior to the expiry date. This proof could be in the form of receipt for the renewal fee or a dated courier’s receipt, signed by someone from the AGCO.
Municipalities can also quickly verify registration status by contacting the AGCO.
Please see “9.1.2. Bingo hall registration” for further information.
The Regulations under the Gaming Control Act, 1992 grant certain classes of persons exemption from registration.
See also Section 11 of Ontario Regulation 78/12 made under the Gaming Control Act, 1992 for further information on classes of person exempt from registration under the Act.
When a lottery licence is issued, the licensee becomes responsible for the conduct and management of the lottery event. Provisions in the Gaming Control Act, 1992 and its Regulations allow the licensee to use the services of a Gaming-Related Supplier to assist in the conduct of the event, but these suppliers may only perform certain tasks. Some tasks cannot be delegated, and must be performed by bona fide members of the licensed organization.
Refer to the relevant chapter for each type of licensed lottery event for further information.
The licensed organization must perform the following general administrative functions:
According to the terms and conditions for lottery licences, bona fide members of the eligible charitable organizations must conduct and manage the licensed lottery scheme. This is a legal requirement. Without the participation of bona fide members, as set out in the licence, the lottery becomes illegal. In such a case, the licensing authority may suspend licences for future lottery events. A bona fide member for the purposes of lottery licensing is an individual who:
A bona fide member cannot be a member of convenience. That is, he or she cannot have been admitted to the organization solely to assist in the operation of the lottery scheme.
A bona fide member of an organization that is a member of a Hall Charities Association cannot be a bona fide member of another member organization of the Hall Charities Association, unless that individual meets the membership requirements for the other organization as well.
The following conflict of interest guidelines have been established to give the public confidence in the integrity of charitable organizations conducting lottery events. As this is a sensitive issue, licensees must be vigilant in preventing any possibility of a potential or perceived conflict of interest.
Examples of conflict of interest
Conflicts of interest could jeopardize the public’s confidence in the integrity of licensed gaming events. Although conflicts of interest may not result in criminal charges, they could affect the reputation of the organization in question, and could even jeopardize the organization’s future licensing privileges. Conflict of interest guidelines are set out in the relevant chapter for each type of licensed lottery event.
All licensees must hold lottery proceeds in designated lottery trust accounts, for the purposes specified in the lottery licence application and approved by the licensing authority. The licensing authority may limit the amount that may be held in the trust account. Lottery proceeds must be used for the purposes approved by the licensing authority and cannot be accumulated for other purposes or over a period of time not approved by the licensing authority.
A licensed organization must open and maintain a separate lottery trust account, designated as a trust account by the branch of a recognized financial institution, in the Province of Ontario. The designated lottery trust account must be in Canadian funds. If the licensee (except for a Hall Charities Association in a non-pooling bingo hall) conducts more than one type of lottery event, it may hold either one designated lottery trust account for all lottery proceeds or a separate designated lottery trust account for each type of lottery.
A Hall Charities Association in a non-pooling bingo hall may hold either a separate designated lottery trust account for each type of lottery event to account for all lottery proceeds or a minimum of two (2) designated lottery trust accounts as permitted under the Financial Management and Administration of Non-Pooling Bingo Halls Terms and Conditions.
Licensees that are permitted to accept American currency must also maintain a trust account in American funds, as set out in Section 3.6.5, “Lottery trust accounts for American currency.”
If the licensee maintains only one lottery trust account, the licensee must keep a separate ledger for each type of lottery event and for each licence issued. The bookkeeping and accounting requirements for each type of lottery are covered in detail in the licence terms and conditions.
The trust account(s) must:
The fact that it is a trust account must be stated on the face of the cheques. If a licensee’s cheques do not currently state this fact, the licensee should ensure that the information is added when cheques are reordered.
The licensee must keep all records for a minimum of four (4) years. In addition to the account information, the licensee must keep a general ledger of all expenses supported by receipts and/or original invoices.
The following rules apply to lottery trust accounts:
See “9.12.1. Lottery trust accounts for bingo events” for further information. For pooling bingo halls, please see “10.8.1. Lottery trust accounts”.
The licensee must pay start-up costs, also commonly known as “seed money,” for the conduct and management of a licensed lottery event from the designated lottery trust account. However, if there are no funds or insufficient funds in the designated lottery trust account the licensee may write a cheque or make an electronic transfer from its general operating account to its lottery trust account to pay for the start-up costs.
Upon completion of the licensed lottery event the licensee must repay the funds by cheque or electronic transfer to its general operating account from its designated lottery trust account. In this instance, the licensing authority must monitor the repayment of the start-up costs and ensure that the repayment is made within an appropriate time period.
Licensing authorities may approve a portion of lottery proceeds to be used to pay for insurance premiums or the indemnification of officers, directors or trustees in some circumstances. Approval must be received prior to making the expenditure. The licensing authority must review each request on a case-by-case basis. To be an eligible use of proceeds, the charitable organization must demonstrate that this expense is necessary to advance its objects and purposes and is in compliance with the Charities Accounting Act. Hall Charities Associations must show that this expense is necessary in relation to the conduct and management of their licensed lottery events. If approved, the insurance or indemnity can be paid for within the maximum allowable administrative expenses set out by the Registrar.
In general, lottery proceeds cannot be accumulated. They are intended to provide a public benefit and must be used to do so in a timely manner. However, with the prior approval of the licensing authority, an eligible organization may accumulate lottery proceeds, subject to the terms and conditions imposed by the licensing authority.
To ensure compliance with lottery licensing policy and the terms and conditions of lottery licences, the licensing authority must monitor the use of revenues and the level of funds in the lottery trust account(s).
When an organization wishes to accumulate lottery proceeds it must apply to the licensing authority and demonstrate that:
Eligible organizations conducting bingo events in communities that border the United States may accept American currency during the conduct of bingo events, which may include break open ticket sales.
If a patron purchases bingo paper in American funds, any prizes won must be paid out in American funds. If the paper is purchased in Canadian funds, the prizes must be paid out in Canadian funds. House rules may be applied that may or may not require patrons to buy all bingo paper, including specials, in the same currency. These rules must be clearly displayed.
Eligible organizations that accept American currency must keep separate Canadian and American lottery trust accounts that have been designated as trust accounts by the branch of a recognized financial institution in Ontario, and must deposit the funds into the corresponding account. Hall Charities Associations in non-pooling bingo halls must maintain a separate American trust account for each type of licensed event.
All lottery expenses and eligible uses of proceeds must be paid from the Canadian account. The American account may only be used to deposit the American currency collected during the event, with the exception of withdrawals for a cash float for the conduct of a bingo event. Expenses, donations or any other withdrawals cannot be made from this account unless the licensing authority grants permission.
The maximum amount that may be accumulated in this account must not exceed the total value of the estimated prize board. When accumulated funds in the American account exceed the estimated prize board, they must be transferred to the Canadian lottery trust account. The date of the transfer, the exchange rate, and the premium or loss (at buying rate), as well as any eligible expenses (uses of proceeds) made from the Canadian account, must be recorded in the Bingo Hall Charity Association Report and in the financial ledgers.
Funds may be transferred from the American account to the Canadian account without the preapproval of the licensing authority but must be moved if the licensing authority requires them to be moved.
The terms and conditions of lottery licences require organizations to provide the licensing authorities with a verified financial statement within 180 days of the organization’s year-end. The type of financial review required depends upon the licensee’s gross annual revenues from all sources. Licensees that receive less than $250,000 in gross annual revenues must prepare financial statements in accordance with the standards set out in the CPA Canada Handbook. Licensees that receive $250,000 or more in gross annual revenues must prepare financial statements in accordance with the standards set out in the CPA Canada Handbook and which have been audited by a public accountant.
The licensing authority may require an audited financial statement to be prepared at the licensee’s expense at any time.
Organizations that already obtain audited financial statements from an independent accounting firm may submit these statements. In addition, the organization must provide a Review Engagement Report or an Auditor’s Report addressing compliance with the terms and conditions and regulations of their lottery licence(s). A public accountant must prepare the audited compliance report in accordance with Section 5815 of the CPA Canada Handbook.
Organizations that realize less than $250,000 from all sources during their fiscal year must provide an annual financial statement verified by the two signing officers of the lottery trust account(s) and the organization’s Board of Directors. At its discretion, the licensing authority may also request a compliance report. The compliance report must be verified by the licensee’s Board of Directors.
For pooling bingo halls operating under the Bingo Revenue Model, see Section “10.7.1. Reporting requirements” for further information.
The licensing authority may require a complete financial picture of a licensee’s gaming operations before the expected delivery of an annual financial statement, or the licensing authority may require a thorough review by a third party. The licensing authority may require a licensee to provide an audited financial statement within the time period set out in the licence, or as specified by the licensing authority.
In order to safeguard the interests of both the public and the licensee, and to ensure that all prizes can be awarded, the licensing authority may require that an organization submit a financial guarantee covering the total value of prizes.
The licensing authority must require a financial guarantee for lotteries with a total fixed prize value of $10,000 or more, including taxes. When the total fixed-prize value is $10,000 or more, the licensing authority requires an irrevocable standby letter of credit as the form of financial guarantee. (See 3.6.8, “Letters of credit” for further information.)
Where deemed appropriate, the licensing authority may also require a financial guarantee for lotteries with a fixed prize amount below $10,000 where the prize is a percentage of the gross ticket sales.
Acceptable forms of financial guarantees are:
The Registrar may specify the form of financial guarantee that must be provided.
Guarantees for municipally issued licences must be made payable to the municipality and guarantees for provincially issued licences must be made payable to the Minister of Finance. A guarantee must begin on the date of the licence application and expire no sooner than 45 days after the licence expiry date. The financial guarantee must indicate the purpose for which it was issued and must be in a form acceptable to the licensing authority.
If a licensee is unable to award the prizes approved by the licence, the licensing authority may draw upon the financial guarantee to ensure that the prizes are awarded.
The licensing authority will return the financial guarantee to the organization as soon as the organization has distributed all prizes and submitted the list of winners and the required financial reports. Therefore, it is in an organization’s best interest to fulfil these obligations as soon as possible.
In the case of municipal licences, the municipality must inform the Registrar if the licensee is unable to award the prizes as approved in the licence. This information may have implications for future applications from the licensee.
With the exception of 50/50 draws, licensing authorities must obtain irrevocable standby letters of credit for lottery licences with a total prize value of $10,000 or greater, including taxes. A licensing authority may also require a letter of credit for a lower prize amount. A letter of credit or other financial guarantee may be required for 50/50 draws where deemed appropriate.
The letter of credit must:
The licensing authority may accept a letter of credit set up and paid for by a third party that permits draws to secure the licensee’s obligations.
A letter of guarantee is not an acceptable financial guarantee. A letter of credit must be made payable independent of any occurrence of default on any obligation by the licensee.
Payment under a letter of credit must not require the Minister of Finance or municipal licensing authority to provide a statement that amounts paid will be retained or used in connection with any obligation or pursuant to any agreement between the licensing authority and the licensee.
The licensing authority will return the letter of credit to the licensee once the licensee has distributed the prizes and submitted the list of winners and a financial report. If a licensee is unable to award the prizes as approved on the licence, the licensing authority may draw upon the letter of credit to ensure that the prizes are awarded as approved on the licence.
A municipality must inform the Registrar if a licensee is unable to award the prizes. A licensee’s inability to award prizes may have implications for the licensee’s future applications.
Licensees must complete accurate standard financial reports for each lottery event. The reports must be filed with the licensing authority in accordance with the reporting requirements of the terms and conditions of the lottery licence. Licensing authorities will report any inconsistencies to the AGCO.
The licensee must provide the licensing authority with a monthly report verified by the licensee’s Board of Directors, setting out all expenses paid from the proceeds derived from the charitable gaming event, as prescribed by the Registrar. The monthly report must be filed within 30 days of the end of the month covered by the report.
Where there is a Hall Charities Association (HCA), it must provide the licensing authorities and the Registrar with a financial report for each monthly period. The report is due 30 days following month-end and must include the necessary information, which includes all licensed lottery events held within the bingo hall. Further details are provided in chapter 10.
Electronic funds transfer (EFT) allows for the transfer of funds between accounts by electronic means. EFT may be used:
The provisions for licensees and HCAs that choose to implement EFT are detailed in the Financial Management and Administration of Pooling Bingo Halls Terms and Conditions (4242). In general:
The licensee and HCA must not use other forms of electronic banking such as:
EFTs must not be used to pay certain expenses including:
A bazaar is a sale of goods held to raise money for a charity. Municipalities may issue licences to allow eligible organizations to conduct and manage lottery events in conjunction with a bazaar, provided the lottery events are ancillary to the bazaar itself.
Three types of lottery events are permitted at bazaars:
Please refer to the Bazaar Licence Terms and Conditions for further information on the conduct of each type of event.
Under a bazaar licence, the licensee may conduct a maximum of three wheels of fortune, with maximum bets of two (2) dollars.
For the purposes of a bazaar licence, a wheel of fortune is a game where players wager chips, tokens or cash on the spin of a wheel in order to win a prize. Players set their wagers, then the wheel is spun. The wheel must complete at least three (3) full revolutions and come to a complete stop before prizes may be awarded. The prizes are based on the amount wagered and the rules for winning on that particular wheel of fortune.
See also “6.1.1(B) Wheels of fortune” in this manual and Section 3.5 of the Bazaar Licence Terms and Conditions for further information.
Under a bazaar licence, a licensee may conduct a bingo lottery with a maximum of $5,500 in prizes. The licensee may sell bingo cards for cash only. The bingo cards may be sold only on the day of the event.
The caller must announce the arrangement of winning numbers immediately before the game begins. All prizes must be awarded as outlined and approved on the licence application.
See also “9.2.1. General bingo licensing policies”.
Under a bazaar licence, a licensee may conduct a raffle lottery with a maximum of $50,000 in prizes. The licensee must sell tickets by cash transactions only. The tickets must be consecutively numbered. All prizes must be awarded as outlined and approved on the licence application.
For raffles where tickets are sold at a single premise and tickets are drawn on the same day as they are sold, the licensee is exempt from general raffle policies requiring a licensee to print complete raffle information on the ticket and retain unsold tickets for one year.
For a set price, participants purchase a certain number of tickets that are usually detachable from the stub portion (retained by the purchaser). Participants may enter as many tickets as they possess on any item (prize) they are interested in by depositing the tickets into a container assigned to that item (prize). The item (prize) is awarded to the person whose ticket is drawn, at random, from the container.
The raffle is limited to a maximum prize board of $50,000 and individuals must be present to win. A prize list is not required with the application.
See also “5.1.2. General raffle licensing policies”.
The following policies apply to bazaar licences:
Eligible organizations must submit applications for a bazaar licence to the municipality in which the bazaar is to be held. For events to be conducted and managed at bazaars in unorganized territories, on Crown lands or in some First Nation communities, organizations must submit their applications to the Registrar:
An application must include:
See “3.6.7. Financial guarantees” and “3.6.8. Letters of credit”.
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.
This chapter outlines the policies and procedures for licensing the following permitted raffle lottery events:
The Registrar has sole authority to issue lottery licences for raffles where the total value of the prizes to be awarded is greater than $50,000 or where the raffle lottery is to be conducted and managed in conjunction with another licensed gaming event.
Only the Registrar may issue a raffle licence permitting an eligible organization to conduct a raffle lottery event in an unorganized territory, on Crown lands or in First Nations communities that do not have their own Order in Council.
Only the Registrar issues licences for electronic raffles, regardless of prize amount.
Municipalities may only issue licences permitting eligible organizations to conduct non-electronic raffle lotteries where the total value of the prizes to be awarded, including any taxes is $50,000 or less.
The following general policies apply to all types of raffle lottery events:
In addition to the general conflict of interest guidelines outlined in Section 3.5.3, licensees must comply with the following guidelines for raffle lottery events:
A stub draw is a raffle lottery with two-part tickets. The purchaser keeps one part of the ticket and the licensee keeps the other part, known as the “stub,” which contains purchaser information. The stubs of all sold tickets are placed in a container and a winner is determined by a random selection.
The lottery advertising and rules pertaining to the raffle must clearly state the sequence of draws and include a listing of all the prizes that will be given for each draw. The advertising and rules must also state whether the prize-winning tickets will be returned to the draw to be eligible for all other prizes. If prizes are drawn from lowest value to highest value, the ticket must be re-entered in the draw for all subsequent draws.
The licensee may also award early-bird prizes, as long as the tickets drawn for the early-bird prizes are returned to the ticket container, so that all ticket buyers have a chance at winning the prizes in the main draw.
The licensee must ensure that all the rules approved by the licensing authority for the conduct of the draw and awarding of prizes are carefully followed. Any variation from the format approved by the licensing authority would constitute a breach of the terms and conditions of the licence.
An “elimination draw” is a variation on the stub draw in which all tickets are drawn from the container one at a time, until only one ticket is left. The last remaining ticket is the grand prizewinner. The licensee may also award lesser prizes at specific intervals. For example, every 50th ticket pulled could win $100.
The applicant must establish a procedure for conducting the raffle draw if not all tickets have been sold. This procedure must be submitted as part of the licence application.
In order to minimize complications and ensure that all prizes are awarded as advertised, elimination draws may only be licensed under the following additional conditions:
In a “calendar draw,” the ticket purchaser buys a calendar on which prizes are identified for a series of draws to take place on selected days. A purchaser wins a prize by matching the number on the calendar with the number drawn from a container on the specific date. Depending on the rules established for the lottery, a winning calendar number may be placed back in the container for subsequent draws or it may be eliminated from future draws. The rules for winning must be clearly stated on the licence application and on the calendar itself.
A “golf ball drop” raffle lottery is a lottery in which participants buy a numbered ticket that corresponds to a numbered golf ball. The golf balls that are inscribed (in indelible ink) with the corresponding numbers are transported to the venue of the drop by mechanical means (for example, crane, cherry picker) or lifted into the air, and dropped over a pre-determined/designated drop area. The drop must be witnessed by the designated members-in-charge and an auditor.
In addition to the basic application requirements to conduct and manage a raffle lottery event, the applicant must include the following:
The licensee is responsible to ensure that safety precautions, safety equipment and safety procedures are in place in the conduct and management of this lottery. For operation of aircraft or other mechanical lifting device, the licensee and aircraft and/or mechanical lifting device operator must conform to all applicable regulations.
Should the licensee choose to insure the lottery event against loss (in the conduct and management of the event), the premium cannot be paid from lottery trust funds.
Reasonable premiums to insure the lottery event against liability for injury or any unforeseen damage to property in the area of the drop may be paid from lottery trust funds.
The licensee must ensure the rules of play submitted for the conduct and management of the event and the awarding of prizes are carefully followed. Any variation from the format approved by the licensing authority would constitute a breach of the terms and conditions of the licence.
The prize board must be a fixed amount and consist of cash, merchandise or a combination of the two.
A “rubber duck” race is a lottery in which participants buy numbered tickets that correspond to numbered artificial, inanimate floating objects of uniform size, shape and weight, such as rubber ducks. All the “ducks” are placed into a river or other naturally moving body of water. The use of any device to create a moving body of water for this type of event is strictly prohibited. The winner is the ticket holder with the number corresponding to the number on the “duck” that crosses the finish line first.
The licensee may award a bonus prize, in addition to the first prize, on a pre-selected “duck” if that duck wins the race. The pre-selected duck must be chosen by a separate draw, prior to the conduct of the event. This draw must be properly witnessed by the designated members-in-charge and/or the auditor. The licensee must keep the identifying number of the pre-selected duck confidential until after the race.
In addition to the basic application requirements for all raffle lottery events, applications to conduct and manage a “rubber duck” race must include:
The supplier of the “ducks” does not have to be registered under the Gaming Control Act, 1992 as a Gaming-Related Supplier.
A paper-based (that is, non-electronic) 50/50 draw is a raffle lottery in which the prize is one half the value of all tickets sold during the event or a defined period of the licence. The purchaser receives a ticket containing a number. A ticket stub with the same number is placed in a drum or other container for a draw.
If roll-type tickets are used, the purchaser must be present at the draw in order to collect his or her prize. If the holder of the winning ticket number is not present when the number is drawn, the licensee must draw another ticket. This information must be included in the rules and any advertising for the event.
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 award prizes based on a 50/50 split of the gross proceeds for a given draw. They may also include a reasonable number of fixed-prize draws, such as for an early bird or consolation prize. The fixed prizes, such as cash or merchandise, must be paid from the charity’s half of the ticket sales
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.
For example, the ABC Hockey Association may apply for a raffle licence to conduct a series of paper- based 50/50 draws. The draws will take place at the second intermission during hockey games, on the first and fifteenth of each month, from January to March.
Example: ABC Hockey Association 50/50 Raffle Licence Number of tickets printed: 5.000 at $1 each Maximum Prize Board = $2.500 |
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Draw Dates: |
Jan. 1 |
Jan. 15 |
Feb. 1 |
Feb.15 |
Mar. 1 |
Mar. 15 |
Tickets sold: |
500 |
800 |
1.000 |
1.050 |
750 |
900 |
Prize payout: |
250 |
400 |
500 |
525 |
375 |
450 |
Balance of tickets for next draw: |
4.500 |
3.700 |
2.700 |
1.650 |
900 |
Nil |
The licence will be issued for the period of Jan. 1st to March 15th, with draws to be held on the dates specified above. |
Whenever a licence is issued for a series of paper-based 50/50 draws, the licensee must use different tickets for each draw throughout the course of the licence. The tickets must clearly identify the draw for which they are sold. The licensee must keep a careful audit trail, as in the example above, to maintain the integrity of the event and to ensure it does not sell more than the maximum number of tickets specified on the licence.
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 period and from one location within a capped prize amount of $50,000 for total prizes.
The types of raffle events that a licensee may conduct under a blanket raffle licence include:
See “5.2.1(H) Meat spins/turkey rolls” and “5.2.1(I) “Name the raffle” lottery” for further information.
A licensee may apply to the licensing authority for a blanket licence to conduct any number of these raffle events or combination of these raffle events for up to a maximum of a year and for a total prize board not to exceed $50,000.
In addition to the basic application requirements for all raffle lottery events, each application for a blanket raffle licence submitted to the licensing authority must include the following information:
Below is an example of a raffle lottery events schedule that might be used by the applicant to provide details to the licensing authority about each of the events to be conducted under a blanket raffle licence.
Details of Event(s):
Type of Event(s): |
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Draw Dates |
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Total Tickets |
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Cost per ticket / Set of Cards |
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Prize Board |
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Licence Fee |
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For Official Use only |
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Total Prize Board: |
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Licence Fee: |
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Period of Licence Fee: |
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For tracking purposes and to facilitate the completion of the standard report form for blanket raffle licences, licensees must keep a separate ledger for each raffle event outlining the financial details including: proceeds derived, expenses paid, and a list of how proceeds have been disbursed. Licensees must identify on each deposit slip the date of the raffle event for each deposit made into the designated lottery trust account and specify the total proceeds deposited for each individual event.
Meat spins/turkey rolls are similar to a stub draw (see “5.2.1(A) Stub draw”). The difference is that there is only one part to the ticket because the winner is determined by a random spin of a wheel rather than by a random selection from the ticket stubs in a container. All of the numbers on the tickets coincide with the numbers on the wheel. For example, if the tickets are numbered 1 to 60, the numbers 1 to 60 are randomly placed around the perimeter of the wheel. Pegs and a clapper slow the wheel to a stop to indicate the winning ticket number.
Since the ticket seller does not have to complete a stub identifying the purchaser, the purchaser must be present at the draw in order to collect his or her prize.
The licensee must meet the following additional conditions when conducting a meat spin/turkey roll:
Meat Spin/Turkey Roll Tracking Sheet Example
A “name the raffle” lottery is a small-scale type of event conducted under a blanket raffle licence (see “5.2.1(G) Blanket raffle licence (issued by municipality only)”). A “name the raffle” lottery allows licensees to award edible products such as porchetta, meats and desserts as prizes.
The game differs from a typical raffle in a few ways:
Players purchase three playing cards at the price approved on the application for licence. Before the start of each game, the dealer announces the number of sets of cards in play. The first game begins when the dealer turns up the first card. The winner is the first player whose set of cards all match the cards turned up by the dealer and who calls out “bingo.”
In addition to the Raffle Licence Terms and Conditions, a licensee conducting the “name the raffle“ lottery must operate the event in accordance with the rules of play. The rules of play are set out on the following page. The municipality must ensure a copy of these rules is supplied with each licence issued.
“NAME THE RAFFLE” LOTTERY is a game where the prize consists of an edible product.
The game is played with four (4) complete decks of 54 playing cards, inclusive of the Dealer’s deck. Two Jokers are included in a complete deck.
Dealer must be a bona fide member of the licensee. The Dealer will have one complete deck of playing cards. The Dealer conducts the game by calling out the cards turned over in the Dealer’s deck.
Draw is the number of games as approved on the licence application.
Winner is declared when a player’s cards match the cards turned up by the Dealer.
Set of Cards means three playing cards held together by a string or metal ring that are sold to players. Sets of cards may be sold in a sealed envelope.
Game Schedule means a complete list of games that are to be played, the price per set of cards and the prizes that are to be awarded.
Cards are sold in sets of three held together with a string or metal ring. The first game begins when the dealer turns up the first card. The winner is the first player whose cards all match cards turned up by the Dealer and who calls out “BINGO”. The Dealer must verify the “Bingo”. Before the game is closed, the Dealer must ask three (3) times whether there are any other winners of that game. To be declared the winner the player does not need to have the last card called. In the event there are multiple winners, the licensee must award additional prizes. In such cases, the licensee will reduce the numbers of games in the draw to ensure it does not exceed its maximum payout as in Scenario #1.
In the event that there are multiple winners in the last draw of the day, the licensee must award additional prizes, as required. Details respecting the additional prizes must be set out in the lottery report. See scenario #2.
Draw # 1. (Scenario #1) * |
Draw # 1. (Scenario #2) ** |
Game #1.. Winner Mr. A |
Game #1………….. Winner Mr. A |
Game #2 .. Winner Ms. B |
Game #2………….. Winner Ms. B |
Game #3 .. Winners Mr. X & Ms. Y |
Game #3………….. Winner Mr. C |
Game #4… Cancelled, as 4 prizes allocated for this draw have already been awarded |
Game #4………….. Winners Mr. X & Ms. Y |
* The licensee must cancel one of the games on the last draw to ensure that they do not exceed the prize board on the lottery licence.
** The licensee must award an additional prize and must report this on the lottery report.
pertaining to the “Name the Raffle” Lottery are to be submitted to the licensing authority with the application. The documents as approved by the licensing authority must be posted at the venue of the event prior to the event.
“Bossy bingo” or “cow patty bingo” is a raffle event conducted using a large area divided into many squares. Participants draw a number representing a square. A cow is then placed in the designated area. The prizewinner is the person holding the number of the square upon which the cow’s bowel movement lands.
Technically, this scheme has the three elements necessary for a lottery scheme: consideration, chance and prize; therefore a lottery licence is required.
A municipality may issue a licence for this type of event should it wish to do so. The municipality must ensure that the licensee is able to comply with the terms and conditions of a raffle licence and is able to ensure the integrity of the event.
The licensee must establish rules for playing the game and determining a winner in a case where more than one square is “marked.” These rules must be approved by the municipality.
An “auction-style” raffle is a raffle in which a series of draws is made during a single event, with one prize for each draw. Elements of the game use terminology and actions reminiscent of an auction, but the game does not involve the purchase and sale of items at agreed-upon prices as in an ordinary auction setting.
In an auction-style raffle, participants “bid” by indicating that they wish to enter the draw. A “bid” is the participant’s entry into a draw. During play, the opportunity to enter a “bid” will be announced. Prior to conducting the draw, the licensee may announce additional opportunities to enter the draw by inviting additional entries in an “auction style”; that is, by soliciting second “bids,” third “bids,” and so on until no further participants want to increase their number of entries for the draw. When no further entries are forthcoming, the opportunity to enter the draw is closed and a draw is made from all tickets entered.
A “Catch the Ace” progressive (accumulating jackpot) raffle lottery is a multiple-draw game in which:
If the card selected is not the Ace of Spades, the selected card is removed from the deck and the progres- sive prize portion of the ticket sales for that draw is rolled over into the progressive jackpot for the next scheduled draw. The licensee conducts the scheduled events using the playing cards remaining from the original deck until the Ace of Spades has been selected and the progressive jackpot has been awarded.
Tickets are valid only for the draw for which they are purchased. Once the draw is complete, the non- winning tickets are removed from the draw container and a new series of tickets is made available for sale for the next draw.
The prize structure must be as follows:
In addition to completing the required application form, applicants will also submit a proposed draw schedule along with a safety and security plan describing the control measures that will be put in place as the progressive prize amount grows. Control measures should address issues including (but not limited to) how the applicant will address the potential for increased attendance and traffic at the draw venue, and how the money from ticket sales will be secured.
The following Terms and Conditions are applicable to Catch the Ace progressive raffles:
Under a Raffle Lottery Licence:
The following Raffle Licence Terms and Conditions do not apply to Catch the Ace events:
Under a Bingo Revenue Model Lottery Licence:
The following Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions do not apply and are modified as follows solely for the purposes of Catch the Ace events:
A completed Catch the Ace Report (6044), along with all supporting documentation must be submitted to the licensing authority within seven calendar days after every fourth draw.
Charities may apply to the AGCO to conduct Catch the Ace draws with prize boards over $50,000 using paper-based ticket sales for initial draws, and propose through an amendment request to conduct ticket sales for later draws in-person using AGCO-approved electronic devices. Please note:
For information on electronic Catch the Ace raffles, please see 5.3.1, “Electronic raffles”.
Electronic raffles are raffles in which computers (including handheld devices) may be used for the sale of raffle tickets, the selection of raffle winners and the distribution of raffle prizes in Ontario.
Eligible charitable or religious organizations may apply to the Registrar for a licence to conduct and manage electronic raffles.
No minimum prize board is needed to obtain a licence to conduct and manage an electronic raffle. Three types of electronic raffles are permitted:
All the policies that apply to paper-based raffles also apply to electronic raffles, with some exceptions and additions as noted below.
Terms and conditions that electronic raffle licensees must comply with include:
The use of paid ticket sellers is permitted for electronic raffles. Sellers may not be paid based on the number of tickets they sell, and the money used to pay sellers must come from a general account.
All electronic raffles are required to provide clear communications on resources available to support problem gambling. Tickets must provide contact information for the ConnexOntario problem gambling service phoneline (1-866-531-2600). Additionally, electronic raffle personnel are required to have the knowledge to direct players to the ConnexOntario problem gambling phoneline and website (https:// www.connexontario.ca/).
Licensed charities are permitted to accept sponsorship for their electronic raffles in the form of fixed cash or merchandise prizes. Charities must also ensure that sponsorships are clearly communicated to customers. As the amounts received from sponsors become part of the prize board, licensing fees, which are set at one per cent of the prize board, are calculated to include any sponsorship funds.
Any incidents, such as suspected cheating or gaming supply/system malfunctions, occurring before or during the electronic raffle event must be reported by the licensee to the Registrar within a specific timeframe. The Notification Matrix—Electronic Raffles lists all the incident types that must be reported, when and to whom.
In order to assist charities that wish to conduct electronic raffles, a list of registered suppliers and their technical solutions is posted on the AGCO website. As part of their conduct and management responsibilities, it is up to charities to ensure that they are working with a registered supplier and using the approved version of a supplier’s technical solution.
An irrevocable standby letter of credit is required for all fixed-prize electronic raffles. For other electronic raffle types, licensing authorities may require a financial guarantee for prizes.
Licensees have the flexibility to sell tickets for an electronic raffle both in person and online. For an electronic raffle that combines both in-person and online sales, such as a 50/50, licensees must conclude the draw before they can open sales at the same venue(s) for another raffle of the same type that combines in-person and online sales.
Licensees may conduct and manage a maximum of four online raffles at the same time. (The term online refers to sales that occur when a customer uses the internet to purchase a ticket.)
There are a number of registered Gaming-Related Suppliers with AGCO-approved electronic raffle solutions that charities may use. Licensees may also develop their own online raffle sales platform. All proposed solutions, including charity-developed sales platforms, are subject to review and approval by the AGCO’s Technical and Laboratory Services.
Licensees may sell electronic raffle tickets at multiple locations where they lease, own or have permission to sell tickets. The following restrictions apply:
Licensees may sell tickets for an electronic raffle over multiple days.
Charities may obtain a licence that permits multiple draws over an extended period, such as during a sports season.
A sports pool, based on any combination of chance and skill, must not be licensed. The Criminal Code prohibits lottery schemes involving pool selling or bets on any race, fight or other single sporting event or athletic contest.
With the exception of “rubber duck” races, a licensing authority may not issue a licence for any scheme where the winner of a prize is decided on the outcome of a single sporting event, contest or race.
Similarly, sports pools based on a series of sporting events, contests or races are not allowed if the purchaser chooses the team or player or results on which his chances to win are based.
The use of the word “donation” in lieu of a purchase price for tickets does not alter the fact that consideration is being paid for a chance to win a prize. Accordingly, this type of raffle constitutes a lottery scheme under Section 206(1) of the Criminal Code. A licensing authority must not issue a licence for a raffle in which part of or the entire purchase price of a ticket is a “donation”.
“Scratch and win” raffle lotteries must not be licensed.
See also “5.1.2. General raffle licensing policies”.
The licensee is accountable to both the licensing authority and the public, to ensure that the prize originally offered is the prize actually awarded. In the interest of consumer protection and to ensure that any disputes can be resolved, it is essential that:
These requirements help ensure that the integrity of the event is upheld.
Lottery licensing fees, the type of licence required (municipal or provincial) and whether a letter of credit is required are based on a fixed prize value. Where the value of prizes is based on factors beyond the applicant’s control, it is impossible to properly administer the event. Therefore, such types of events cannot be licensed.
In addition to the general raffle licensing policies set out in Section 5.1.2, the following policies apply to licences issued by municipalities:
Organizations applying for a municipal raffle lottery licence must comply with the following procedures:
The municipality may also require:
The municipality may set up a fee structure to cover the cost of issuing licences and any additional costs related to the supervision and control of the licensed lottery events.
The fee for a municipal raffle lottery licence must not exceed the maximum amount set by the Registrar. In the case of a 50/50 draw, the licence fee is calculated based on the maximum prize board (see “5.2.1(F) 50/50 draw (paper-based)” for an example).
Please see “Chapter 10: Bingo—in Pooling Bingo Halls”, for fees applicable to raffles conducted and managed in pooling bingo halls operating under the Bingo Revenue Model.
In addition to the general raffle lottery licensing policies set out in Section 5.1.1, the following policies apply to raffle licences issued by the Registrar:
Organizations applying for a raffle lottery licence from the Registrar must comply with the following procedures:
A licensee must conduct a raffle lottery in accordance with its licence application and the terms and conditions of the licence. However, if it is in the public interest to do so, a licensing authority may issue an amendment to a licence it has issued, as long as no tickets have yet been sold (with the exception of Catch the Ace raffles as described in 5.2.1[l][v]). A licensing authority may also refuse a licence amendment request. A licensee must not change the way it is conducting and managing an event unless it has first obtained a licence amendment.
The licensing authority must consider requests for licence amendments on a case-by-case basis. The licensing authority is under no obligation to issue an amendment solely because it has previously issued an amendment under the same or similar conditions. Amendments must not be granted solely on the expectation of loss.
The licensee must apply for a licence amendment in writing before any tickets have been sold under the licence. The licensing authority will not grant amendments after ticket sales have begun. Expired licences may not be amended or cancelled.
If changes to the licence application package are made before submission to the licensing authority, each change must be initialled, on each document, by the individual(s) with signing authority for the applicant.
Requests for amendments to information already submitted to the licensing authority by way of completed application package must be made in writing on the applicant organization’s letterhead and signed by the individual(s) authorized to bind the applicant. Any supporting records must be provided.
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.
An organization licensed to conduct a raffle event may request to have its licence cancelled at any time, provided that no tickets have been sold. Any such request must be made in writing to the licensing authority and must state that no sales have taken place.
In the interests of consumer protection, a licence may not be cancelled once sales have begun except under the following conditions:
The request to cancel must be made in writing to the applicable licensing authority with an explanation of why the licensee is making the request.
Unless all ticket purchasers agree to the above conditions, the licensee must conduct the lottery event as originally set out in the application for licence.
See also “3.4.1. Suspending or cancelling lottery licences”.
In order to safeguard the interests of both the public and the licensee, and to ensure that all prizes can be awarded, regardless of any extenuating circumstances, the licensing authority may request that an eligible organization present a financial guarantee covering the total value of the prizes. The licensing authority must require a financial guarantee for all fixed-prize raffle licences with a total prize value of $10,000 or greater, including taxes. The licensing authority may also require a financial guarantee when it determines it is appropriate, including for a prize amount less than $10,000 amount or where the prize is a percentage of the gross ticket sales.
When the total prize value of a fixed-prize raffle licence is $10,000 or greater, the licensing authority requires an irrevocable standby letter of credit as the form of financial guarantee.
For 50/50 draws, a letter of credit is not mandatory unless the licensing authority otherwise directs; however, where a letter of credit is not required by licensing authorities, another form of financial guarantee for prizes may be required when deemed appropriate.
See “3.6.7. Financial guarantees”, and “3.6.8. Letters of credit” for further information.
The licensee is responsible for ensuring the accuracy of the information used in its advertising. The licensee should have its advertising materials reviewed by its legal counsel for compliance with all applicable federal and provincial legislation.
A municipality may only approve lotteries within its own boundaries and the Registrar may approve lotteries within Ontario. Therefore:
See “3.3.0. Advertising licensed lottery events” for further information.
» financial success;
» social acceptance;
» professional achievement;
» personal success;
» sexual opportunity;
» the fulfillment of any goal; or
» the resolution of financial, social, physical or personal problems
See “3.3.2. Advertising Content guidelines” for further information.
Celebrities and other well-known personalities may endorse or otherwise promote raffles, but only if they provide such assistance to the licensee free of charge.
In addition, celebrity endorsement must not:
Print and internet advertisements for raffle lotteries must contain the following information:
If space restrictions prevent a licensee from giving full details of the prizes to be awarded, the licensee should refer the customer to a brochure, website or other resource containing those details.
Organizations conducting raffle lotteries often sell tickets through a mail order form built into an adver- tisement. The advertisement and the mail order form must both bear the lottery licence number. The consumer sees the advertisement, fills out the order form and mails it, along with the proper payment, to the charitable organization. The organization, in turn, records the purchase and mails the ticket to the consumer.
While the Registrar allows this procedure, organizations should be aware that it could cause administrative difficulties if the form is distributed in areas outside Ontario. Licensees must ensure that the mail order forms are not distributed beyond provincial boundaries nor should the licensee accept orders from outside Ontario.
While a licensee may advertise in national or international newspapers and magazines, on the Internet or web sites, or on radio and television that may cross borders, tickets may only be sold in Ontario. A licensee may publish the winner’s name and ticket number on the Internet.
Call centres, ticket fulfilment centres and other organizations that provide a ticket order–taking service for licensed lottery events must be registered under the Gaming Control Act, 1992. Licensees that operate their own call centres must use their bona fide members and/or their own staff members, provided that the staff members’ primary responsibility is not providing gaming services that would normally require registration.
If a licensee uses gaming services provided by an unregistered supplier or sub-contractor, the licensee will be in breach of the terms and conditions of the lottery licence.
In order for a lottery scheme to be legal it must be conducted and managed by bona fide members of the licensed organization. (See also “3.5.2 Bona fide members”.)
An organization must designate a minimum of two bona fide members to be in charge of the conduct of a raffle lottery event. The organization must submit the names of the designated bona fide members to the licensing authority and must be prepared to provide documentation proving the designated individuals are bona fide members and not members of convenience. The designated members in charge must be at least 18.
The bona fide members are responsible for:
The Raffle Licence Terms and Conditions do not make provisions for reimbursing expenses for bona fide members who participate in the conduct and management of raffle lotteries.
In addition to the general raffle licensing policies, the following policies apply to house raffle applications.
» covered by the Ontario New Homes Warranties Plan Act;
» ready for occupancy prior to the draw; and
» situated in the Province of Ontario.
In addition to the general raffle lottery policies, the following policies apply to all motor vehicle raffle applications:
An organization may offer an antique motor vehicle as a prize in a licensed raffle lottery, provided the vehicle meets the requirements set by the Ministry of Transportation of Ontario (MTO) to be qualified for historic motor vehicle licence plates.
In the interests of consumer protection and to ensure that any advertising represents the true full retail value of the items offered, these types of prizes will be allowed only where the following documents accompany the application:
Raffle lottery licensees may award Ontario Lottery and Gaming Corporation (OLG) tickets as secondary prizes for raffle lottery events provided that the following conditions are met:
Occasionally, organizations conducting raffle lotteries offer antiques or art objects as the main prize for their event. In the interests of consumer protection and to ensure that any advertising represents the true market value of the item(s) offered, these types of prizes will be allowed only if the following documents accompany the application:
Organizations conducting raffle lotteries may offer vacations as prizes, provided the travel agency is registered with the Travel Industry Council of Ontario (TICO). Where vacations are offered as prizes for raffle lotteries, the locations and dates of the arrivals and departures for all portions of the vacation package must be included in the licence application. The summary of the vacation package offered must include a full description of all services, including hotel accommodations, meals, complete travel arrangements including points of departure and entry (which must be in Ontario), limousine services, airline tickets, carriers and boat cruises.
Liquor may be awarded as a prize for a raffle lottery provided that the organization conducting the raffle lottery ensures that:
Prohibited and restricted firearms as defined in the Criminal Code (Canada) must not be used as prizes for raffle lotteries.
Licensees may only use non-restricted firearms (long guns) such as shotguns and rifles, which are reasonably used for hunting and sporting purposes, as prizes for raffle lotteries provided the following conditions are met:
Prohibited crossbows as defined in the Criminal Code (Canada) must not be used as prizes for raffle lotteries.
Licensees may only use crossbows that are reasonably used for hunting and sporting purposes as prizes for raffle lotteries. The crossbows must be purchased or donated through an authorized dealer in the province of Ontario.
Organizations that have conducted raffle lotteries and are unable to find the holder of the winning ticket(s) are obligated to make every reasonable effort to contact the winner, including:
The organization must keep records of the attempts made to contact the winner, as part of the documentation retained under the terms and conditions of the licence.
The unclaimed prize must be held in trust by the licensee for a period not less than six (6) months from the date the prize was awarded. At the end of the six-month period, the total amount of the prize held in trust, including interest, or the value of a merchandise prize equal to the manufacturer’s suggested retail price, must be included by the licensee in the gross proceeds of the lottery event.
Only the Registrar may issue special occasion gaming licences.
A “special occasion gaming licence” is a lottery event conducted as a secondary or complementary component of a social occasion, such as a dinner or dance sponsored by:
A licensee may operate up to 20 blackjack tables and 20 wheels of fortune at a special occasion gaming event. The operating hours of a special occasion gaming event must fall within the time period of the social occasion and must not exceed eight (8) consecutive hours between 12:00 noon and 2:00 a.m.
The object of blackjack is to achieve a better hand than the dealer’s. A player wins if he or she has a higher total than the dealer without exceeding 21 points (busting), or if the dealer’s total exceeds 21. Each card is counted at face value, except the ace, which can be valued at one (1) or 11 points at the player’s discretion, and the face cards (jack, queen and king), which count as 10 points each.
A wheel of fortune is a game where players wager non-negotiable chips on the spin of a wheel in order to win a prize. Players set their wagers, then the wheel is spun. The wheel must complete at least three (3) full revolutions and come to a complete stop before prizes may be awarded. The prizes are based on the total value of the chips wagered and the rules for winning on that particular wheel of fortune.
Licensees may use only wheels of fortune approved by the Registrar. The Registrar has approved the following wheels of fortune for use in the conduct of a special occasion gaming licence:
Only the Registrar may issue special occasion gaming licences.
The following licensing policies apply to special occasion gaming licences:
An eligible organization must submit a separate application for each special occasion gaming licence.
A licensee may conduct a raffle lottery in conjunction with a special occasion gaming licence on the same licence, if the total value of all the raffle merchandise or cash prizes is $5,000 or less. In this case, the Raffle Licence Terms and Conditions also apply to the special occasion gaming licence.
If a licensee intends to award raffle prizes with a total value of over $5,000, the licensee must apply for both a raffle lottery licence and a special occasion gaming licence. The licensee must comply with the Raffle Licence Terms and Conditions.
An organization with a municipal raffle licence may use a special occasion gaming event (licensed by the Registrar) as a venue for a raffle draw, provided the raffle licence clearly states that ticket sales will end prior to the conduct and management of the special occasion gaming licence.
The licence fee for a special occasion gaming licence is set at five (5) dollars per table or wheel of fortune.
Betting limits for a special occasion gaming licence are set at a one (1) dollar minimum and five (5) dollars maximum.
If an entrance fee is required for a special occasion gaming event, the entrance fee must not include any chance to win a prize in a licensed raffle. Raffle tickets must be sold separately.
The licensee must keep costs related to the licensed games separate from those related to the non-gaming parts of the special occasion gaming event for accounting expense purposes. The only exception is rental costs, provided the licensed games are played in the same room as the one in which the special occasion gaming event takes place.
The licensee must track and report all gaming revenue from the special occasion gaming event separately from any other revenue received from the social occasion.
The licensee may establish a special occasion gaming licence trust account for all expenses and revenues related to the licensed gaming events. Alternatively, if the licensee has established one designated lottery trust account, it must establish a separate ledger for the special occasion gaming licence. Costs related to the non-gaming activities of a special occasion gaming licence must not be paid from the designated lottery trust account or the special occasion gaming licence trust account.
If the licensee incurs costs for the licensed games prior to the conduct of the special occasion gaming event, the licensee may pay those costs from the designated lottery trust account or from funds deposited to its special occasion gaming licence trust account by cheque from its general operating account. The licensee must repay the funds from its general account by cheque from its special occasion gaming licence trust account upon completion of the special occasion gaming licence. The licensee must notify the licensing authority when it intends to move funds from one account to another to pay start-up costs. The licensing authority must monitor the situation to ensure that the repayment is made within an appropriate time period. (See “3.6.2. Start-up costs for lottery events” for further information.)
If the licensed games at a special occasion gaming event operate at a loss, the licensee must deal with the loss in accordance with the procedures set out in the terms and conditions of the licence.
A licensee may request to make changes to an application, in accordance with the licensing procedures. However, once a special occasion gaming licence has been issued, the Registrar will not consider further requests for changes.
The Registrar will not issue a licence to an applicant that has not submitted and received approval for financial reports due for previous lottery events.
Only the Registrar may issue special occasion gaming event licences. Applications must include:
The Registrar will return applications that are not accompanied by the required documents and note the deficiencies.
Organizations must request changes to an application in writing, on letterhead, signed by the member who signed the original licence application. The request must include a letter of support from the municipality and any supporting documents that may be affected. The Registrar requires two weeks to respond to a request for changes, and may approve or deny the request.
Examples of facilities that may qualify as acceptable locations for a special occasion gaming licence include:
In order to be an acceptable location for the conduct of a special occasion gaming licence, a location must meet the following standards:
The special occasion gaming licence location must have a separate entrance that is not shared by patrons of any other activity conducted on the premises. Patrons of the special occasion gaming event must have direct access to the washrooms and food services. If patrons must pass through other activity areas to reach the washrooms or food services, the location is not acceptable.
A location must be used primarily for lease or rent to the general public for various functions, such as weddings, parties and meetings. A location that must close down all or part of its regular facility/business in order to hold a special occasion gaming event is not an acceptable location.
The Registrar may not issue special occasion gaming licence at locations where the owners and/or operators have been charged and/or convicted of gaming-related offences or had their registrations suspended or revoked.
The Registrar may not issue special occasion gaming licences at locations where owners and/or operators have been charged and/or convicted of liquor-related offences or had their liquor licence suspended or revoked.
If the applicant proposes to permit the consumption of liquor during a special occasion gaming licence, the applicant should contact the Alcohol and Gaming Commission of Ontario for information regarding liquor licence laws and Special Occasion Permits.
The Registrar will not issue special occasion gaming licences for events to be held in the following locations:
Some organizations conduct events such as blackjack or wheels of fortune as “fun nights,” for the sole purpose of providing entertainment for their guests.
Typically, at these types of events, the chips, tokens or play money are made available to everyone free of charge (no direct or indirect consideration). As well, no prizes are awarded if an entrance fee of any kind has been charged. If any kind of fee (direct or indirect consideration) has been charged for the event, the chips, tokens or play money are not redeemed for goods, wares, merchandise or cash at the end of the evening.
As there is no licence available for this type of event, it is ultimately the responsibility of organizations or individuals wishing to conduct “fun nights” to ensure that any events they conduct comply with the Criminal Code (Canada). Organizations or individuals wishing to conduct “fun nights” may wish to seek independent legal advice.
“Break open tickets” (BOTs) are instant-win lottery tickets, commonly known as “pull tab” or “nevada” tickets and the brand name “Pocket Slots.” Break open tickets:
Some break open ticket games offer the traditional instant prizes and a chance to win a secondary/special prize. Two such games are “seal card” games and “bingo event ticket” games.
Seal card games feature tickets called “hold tickets” that provide certain players a chance at a secondary prize or prizes determined by removing a window from a larger break open ticket known as a “seal card.” The seal card is opened to reveal winning numbers or symbols that match the numbers or symbols on the player’s “hold” ticket.
See “7.4.1(A) Seal card game policies”, and the Break Open Ticket Licence Terms and Conditions for further information.
For pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions, and Financial Management and Administration of Pooling Bingo Halls Terms and Conditions for further information.
Similar to the seal card game, a “bingo event ticket” game also provides players a chance at a secondary/ special prize. The difference is that these games are conducted in conjunction with licensed bingo events and feature “hold” tickets that contain bingo ball numbers or symbols based on the number of bingo balls being used in the bingo event. The winner of the bingo event ticket game prize(s) is determined by matching the bingo ball symbol(s) on the hold ticket with one or more of the bingo numbers called during a licensed bingo event or dabbing a pattern of bingo ball numbers or symbols on the game ticket during a bingo event.
See “7.4.1(B) Bingo event ticket game policies”, and the Break Open Ticket Licence Terms and Conditions for further information.
For pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions and and Financial Management and Administration of Pooling Bingo Halls Terms and Conditions for further information.
In order to be approved for sale in Ontario, all break open tickets, including seal card games and bingo event game tickets, must comply with the Registrar’s requirements and standards related to break open tickets, including the Standards for Suppliers of Goods and Services: Break Open Tickets.
Schedules of approved break open tickets are available from the Registrar and can be found on the AGCO website.
Break open tickets are packaged in “boxes” within “deals” and are identified by “type” and “style.”
Deal: Refers to each separate series of break open tickets with the same serial number.
Box: Refers to a separately sealed box of break open tickets within a deal, as shipped by the Gaming- Related Supplier.
Type: Refers to the number of tickets per deal, the price of each ticket and the total prize value per deal.
Style: Refers to the combination of approved graphics (such as bells, boats or fruit) and prize structure used for the break open tickets. There may be many different styles within a break open ticket type, as approved graphics may be used with any type, and several different prize structures may be approved for each type.
Prize Structure: Refers to the number and combination of winning tickets and prize amounts used to reach the total prize value in the break open ticket type, as approved by the Registrar.
Prize structure example:
Number of Winning Tickets = 223 Total Prizes = $1,015
1 x $300 =$300
4 x $100 =$400
1 x $50= $50
2 x $25 =$50
215 x $1 =$215
Graphics: Refers to the symbols (such as bells, boats or fruit) and any other approved illustrations appearing on the break open tickets.
Break open tickets are sold either in a transparent container or an approved break open ticket “dispenser.”
Container: A clear box from which an attendant manually withdraws break open tickets. Break open ticket containers do not require prior approval by the Registrar.
Dispenser: A break open ticket dispenser is an electrical or mechanical device used to dispense break open tickets. Break open ticket dispensers must be approved by the Registrar and manufactured by a manufacturer registered as a Gaming-Related Supplier registered under the Gaming Control Act, 1992.
Licensees may purchase break open tickets directly from any manufacturer that is registered as a Gaming-Related Supplier under the Gaming Control Act, 1992.
Registered Gaming-Related Suppliers are permitted to supply break open tickets to licensees for sale at bingo halls or other charitable gaming sites, third-party locations or their own premises.
Cash, rebates, loyalty rewards and other similar incentives to registered third-party locations that sell break open tickets (break open ticket Sellers and OLG Lottery Retailers) in order to obtain the use of, or to secure the continued use of, their services is not permitted and may result in administrative sanction.
A list of approved manufacturers of break open tickets for the Ontario market is available from the Registrar.
In addition to the general conflict of interest guidelines outlined in Section 3.5.3, licensees must comply with the following guidelines for break open ticket lottery events:
See “7.1.3. Break open ticket suppliers” for further information.
The Order-in-Council gives the Registrar sole authority to issue lottery licences allowing eligible organizations to conduct and manage:
Municipalities issue licences permitting eligible organizations to conduct break open ticket lotteries from locations within their own boundaries, provided the break open ticket lotteries are not conducted and managed in conjunction with another licensed gaming event.
See also “2.2.4. Policies: Organizations that amalgamate” for further information.
See Section “7.9.1. Retention and destruction of break open tickets” for further information.
See “7.5.1. Municipal licensing policies”, and “7.6.1. Provincial licensing policies” for further information.
The following policies apply specifically to seal card games:
See the Break Open Ticket Licence Terms and Conditions for further information.
For Hall Charities Associations in pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions.
The following policies apply specifically to bingo event tickets:
See the Break Open Ticket Licence Terms and Conditions for further information.
For Hall Charities Associations in pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions.
The following licensing policies apply to break open ticket licences issued by municipalities:
See “7.7.1. Sales locations for break open tickets” for further information.
The following procedures apply to break open ticket licences issued by municipalities:
For first time applicants, please refer to the documents outlined in “7.1.0. Introduction”.
It is expected that limitations imposed by licensing authorities on the number of BOT licences issued to any eligible organization will be the result of detailed analysis and only used where the limitation is warranted (for example, where a waiting list of new eligible organizations awaiting BOT sales locations exists).
The Registrar retains the authority to issue PBOT licences. However, the Registrar may place a limit on the number of retail locations permitted per PBOT licensee in a municipality or area covered by a given licensing authority if a similar limit, that is warranted, has been placed on the number of retail locations that may sell BOTs for each charity by the local licensing authority.
However, the licensee may choose to apply for an amendment to remove that ticket type from the licence in order to reduce the reporting requirement. Otherwise, the licensee must report nil sales for the remainder of the licence period.
The following licensing policies apply to break open ticket licences issued by the Registrar to Hall Charities Associations in non-pooling bingo halls:
In order to sell break open tickets throughout the province, an eligible organization must demonstrate that it provides a direct benefit to communities across Ontario and its services are accessible throughout the province.
A provincial break open ticket (PBOT) licensee must provide a broad benefit to the residents of Ontario. As a result, certain programs, such as those that are too narrowly focused, are not eligible to receive PBOT proceeds, even though they may be eligible to receive proceeds from other types of lottery licences.
Examples of programs ineligible to receive PBOT proceeds include:
The following policies apply to PBOT licence applications:
It is expected that limitations imposed by licensing authorities on the number of BOT licences issued to any eligible organization will be the result of detailed analysis and only used where the limitation is warranted (for example, where a waiting list of new eligible organizations awaiting BOT sales locations exists).
The Registrar retains the authority to issue PBOT licences. However, the Registrar may place a limit on the number of retail locations permitted per PBOT licensee in a municipality or area covered by a given licensing authority if a similar limit, that is warranted, has been placed on the number of retail locations that may sell BOTs for each charity by the local licensing authority.
The Registrar will permit licensees selling from locations in an amalgamated municipality to continue sales from their former locations for an 18-month period. After 18 months, they must comply with the new municipality’s licensing policies.
Eligible organizations applying for a break open ticket (BOT) lottery licence from the Registrar must follow the procedures listed below. If the organization is an HCA in a non-pooling bingo hall, it must also observe the additional procedures set out in 7.6.2(B).
For pooling bingo halls operating under the Bingo Revenue Model, see Chapter 10, “Bingo—In Pooling Bingo Halls,” for further information.
Eligible organizations applying for a provincial break open ticket (PBOT) licence must follow the procedures outlined in 7.6.2(C).
In addition to the general requirements set out in 7.6.2(A), HCAs applying for break open ticket lottery licences in a non-pooling bingo hall must observe the procedures listed below.
An HCA must submit the following additional information with its application:
When an HCA wishes to sell multiple ticket types under a single licence, it must enter into an agreement with the Operator of the bingo hall, outlining a division of roles and responsibilities. Only the HCA may perform certain duties required for the conduct and management of the lottery event.
Tickets may be sold at the locations and under the circumstances listed below.
A licensee that provides goods or services to itself and sells tickets at its own premises is not required to be registered under the Gaming Control Act, 1992. A licensee may sell tickets from its own premises without registration provided that it:
The landlord of the premises does not have to be registered, provided that the landlord does not participate in the conduct and management of the break open ticket event, and does not receive any payment (rent or otherwise) based on a percentage of tickets sold.
A licensee selling from its own premises may choose to pay itself rent for the portion of the premises used for the sale of its break open tickets. In order to create an audit trail for these rental payments, the licensee must issue itself an invoice, and pay itself with a cheque issued from the lottery trust account. The revenue from these rental payments may be deposited to its general account. A licensee’s expenses related to the sale of break open tickets must not exceed the maximum amount established by the Registrar.
If an eligible organization proposes to sell break open tickets at a location other than a bingo hall or a premises it owns or leases for its own charitable activities, the location must be registered as a Seller under the Gaming Control Act, 1992. The Seller’s registration number must be included with the licence application.
In order to sell break open tickets at a registered Seller location, the licensee must enter into a contract with the Seller. This contract must contain a termination clause allowing either party to terminate the contract upon at least 90 days written notice prior to licence expiry, to be effective upon licence expiry. The termination clause must also provide for immediate cancellation of the contract should the organization’s licence or the Seller’s registration be suspended or revoked. In the event that a licence is suspended or revoked, the Seller may enter into a contract with another licensee.
The licensee may pay the Seller the allowable commission for the sale of break open tickets. The licensee may choose to request its net proceeds (gross proceeds minus sales commissions) when the break open tickets are delivered to the Seller. Alternatively, the licensee may choose to allow the Seller to pay the net proceeds for all break open tickets within 30 days after they have been delivered for sale.
If a licensee cancels a contract with a Seller and the Seller does not sell all the deals but has paid the full net proceeds, the licensee must refund to the Seller the full amount of the net proceeds for the unsold deals.
For purposes of reconciliation, the Seller is responsible for the security of the break open tickets once the seal on the deal package is broken. The Seller must return all the unsold deals and partial deals to the licensee, to allow the licensee to do a full reconciliation.
A municipality may issue break open ticket licences allowing eligible organizations to sell break open tickets at special community events of limited duration, such as community festivals, regardless of whether or not they have licences to sell tickets at break open ticket Seller locations, provided that:
An eligible organization with a current break open ticket licence may apply to be licensed to sell tickets at a community festival in one of two ways:
If a registered Seller location or a licensee-owned (or leased) premises is already selling break open tickets on the community event grounds, they may continue their ticket sales during the event.
Break open ticket sale locations at festivals and other community events do not have to be registered as Seller locations under the Gaming Control Act, 1992 unless the location is providing other services that would require registration under the Act.
The Registrar may issue break open ticket licences allowing eligible organizations to sell tickets at designated fairs or exhibitions, regardless of whether or not they have licences to sell break open tickets at Seller locations, provided that:
Break open ticket sale locations at designated fairs or exhibitions do not have to be registered as Sellers under the Gaming Control Act, 1992 unless the location is providing other services requiring registration under the Act.
If a registered Seller location or a licensee-owned (or leased) premises is already selling break open tickets on the designated fair or exhibition grounds, they may continue their ticket sales during the event.
Break open ticket dispensers are electrical or mechanical devices, and do not include “containers” as defined in 7.1.2, used to dispense break open tickets. They may be used in bingo halls, Seller locations registered to sell break open tickets under the Gaming Control Act, 1992 and at other locations exempt from registration, provided the following conditions are met:
If the licensee chooses to rent a dispenser, the licensee must enter into a written contract with the registered Gaming-Related Supplier. Any rental contract must state the terms and duration of the rental and outline what will happen in the event that the licence is suspended, revoked or cancelled.
The Break Open Ticket Licence Terms and Conditions require that the seal card be prominently displayed identifying the dollar value of the seal card prizes available to be won.
The Break Open Ticket Licence Terms and Conditions require that a bingo event ticket game poster be displayed to identify the dollar value of prizes available to be won.
In order for a lottery scheme to be legal it must be conducted and managed by bona fide members of the licensed organization. The licensee must designate at least one bona fide member to be responsible for the conduct of the break open ticket lottery. If the tickets are to be sold by an HCA in a non-pooling bingo hall, the association must designate a minimum of two bona fide members.
The licensee must submit the names of the designated bona fide members to the licensing authority and must be prepared to provide documentation proving that the designated individuals are bona fide members and not members of convenience. The designated members must be at least 18 years old. (See also “3.5.2 Bona fide members”.)
For pooling bingo halls operating under the Bingo Revenue Model, see “10.5.1(a) Bona fide members” for further information.
Destruction of unsold, imprinted tickets ensures that gaming product is not re-introduced into the marketplace for illegal sale. The licensee must keep reconciled tickets for 90 calendar days after the interim or final report is filed with the licensing authority and then destroy them in the manner set out below.
Following the prescribed retention period, the following tickets must be destroyed:
The tickets must be destroyed in the following manner:
The Registrar retains the sole authority to approve all tickets, including their graphics, prizes, prize values, sponsorship and promotions. Only ticket types and styles approved by the Registrar may be sold in Ontario.
Licensees are permitted to award merchandise as prizes for BOT lotteries, in addition to existing prize options of cash or free tickets. The value of merchandise prizes for purposes of establishing the prize board and licence fees will be based on the manufacturer’s suggested retail price (MSRP). Licensees must be able to provide documentation indicating the MSRP of prizes at the time they were obtained for reporting purposes and upon request.
Merchandise prizes may be stored at a premise other than the retail location. Licensees are required to provide the winning ticket holder with a claim ticket to be exchanged for the actual prize which, in turn, must be awarded within one week of winning ticket redemption. Licensees must ensure that the winning ticket holder can pick up the prize at the retail location or should deliver the prize directly to the winning ticket holder within the one-week period. This will be communicated through a sign posted by the licensee at the point of sale stating these requirements.
In order to ensure retailers are not required to keep large sums of cash onsite to pay out top prizes, licensees, in consultation with their retailers, may designate an amount above which customers will receive a claim ticket for their prize. All cash prizes must be paid within 48 hours. Licensees are required to ensure that retailers post a sign notifying customers of this.
Licensees may permit external sponsors to place their branding on break open tickets sold by the licensee. The ticket must be prominently identified as a charity product. Any benefits realized by the manufacturer or the supplier are to be disclosed to the licensee. Sponsorship and branding must comply with the prescribed graphic approval requirements.
As part of the prescribed prize board, licensees may offer prizes provided by external sponsors.
Games may be developed whereby players submit the played ticket for a coupon to be redeemed for a free item, at which point no further purchase is required. The face value of the coupon is to be included as part of the prize board.
A licensee may elect to sell break open tickets that have promotions of additional value attached to them. The value of the promotions may or may not be included in the prescribed prize board. The ticket may be used or redeemed for a coupon in the following manner:
The Criminal Code (Canada) allows lottery events to be licensed at designated fairs or exhibitions. Only the Registrar may:
The Ontario Association of Agricultural Societies maintains a list of fairs and exhibitions. The Registrar recognizes these as fairs and exhibitions for the purpose of lottery licensing. Fairs and exhibitions appearing on the list must meet all other eligibility requirements for lottery licensing.
The Registrar may consider designating other fairs and exhibitions not included on this list for the conduct and management of lottery events.
The boards of designated fairs or exhibitions or the operators of concessions leased from the boards (concessionaires) may apply to conduct and manage lottery events.
Lottery events to be conducted and managed at fairs or exhibitions are also subject to the Fair and Exhibition Gaming Event Terms and Conditions (3018a).
The following policies apply to all licence applications from fair or exhibition boards and concessionaires:
See “6.1.1. Blackjack and wheels of fortune”, and also the Fair or Exhibition Gaming Event Licence Terms and Conditions “Rules of Play (3018a)” for further information.
The following licence fees apply:
Bingo is a game of chance where players are awarded a prize or prizes for being the first to complete a specified arrangement of numbers on bingo paper, based on numbers selected at random.
This chapter contains the policies and procedures for licensing bingo events conducted anywhere other than in pooling bingo halls. (For information on bingo and other charitable gaming events conducted in pooling bingo halls, please refer to Chapter 10: “Bingo—In Pooling Bingo Halls.”)
The Registrar issues certain types of bingo licences and municipalities issue others. Currently, the following types of bingo events may be licensed in Ontario:
The above list is subject to change.
If a municipal official receives an application for a bingo game that he or she is not familiar with, the official must first ensure that the bingo game in question is one which is currently approved for licensing by the Registrar before issuing a licence.
The Order-in-Council gives the Registrar sole authority to issue lottery licences allowing eligible organizations to conduct and manage:
The Order-in-Council authorizes municipalities to issue licences permitting eligible organizations to conduct Regular Bingo games with maximum prize boards of up to $5,500.
The Registrar has established criteria and procedures for opening, upgrading, relocating and reopening bingo halls.
The Gaming Control Act, 1992, governs the registration of Operators of bingo halls, which include:
Licensees that rent out their premises and/or equipment to another licensee may require registration as prescribed by Regulation.
Registration is not required in the following circumstances:
Bingo licensees must comply with the following conflict of interest guidelines, in addition to the general conflict of interest guidelines outlined in “3.5.3. General conflict of interest guidelines”:
The following policies apply to bingo licences issued by municipalities:
This section contains information on municipally issued licences for the following types of bingo games and events:
Pursuant to the Order-in-Council, a municipality may issue licences allowing eligible charitable organizations to conduct Regular Bingo events with prize boards that do not exceed $5,500.
The licensee’s game schedule may include any combination of fixed prize and variable prize games. Variable prize games must show a minimum and maximum prize payout for each game on the schedule.
If all the games on a licensee’s schedule are variable prize games, the maximum prizes to be awarded cannot exceed 60 per cent of gross sales for each game. The total prizes paid out can never exceed the licensed prize board.
“Merchandise Bingo” is a bingo game or event where the prize board consists of items of merchandise. An eligible organization may be licensed to conduct Merchandise Bingo as a regular bingo event, as part of a Regular Bingo event or at a “black tie event”.
At a “black tie event”, participants play by invitation only. They pay a fixed amount to participate in the event. The entrance fee covers the cost of playing bingo.
Boards of designated fairs or exhibitions, or concession operators at designated fairs or exhibitions, may apply to the Registrar to conduct Merchandise Bingo events during the fair or exhibition.
See also “Chapter 8: Fair and Exhibition Gaming Event”.
The following licensing policies apply to Merchandise Bingo games conducted as a Regular Bingo event, as part of a regular bingo event or at a “black tie event”:
A Loonie Pot Bingo is a special, variable prize game within a Regular Bingo game schedule. Bingo patrons pay a dollar to have their bingo paper stamped for the designated Loonie Pot Bingo game. Before the game begins, a number is selected, announced and put back into the machine. If a player with stamped bingo paper calls bingo and their winning number arrangement contains the pre-selected number, they also win the Loonie Pot Bingo prize. (Note that “Loonie Pot Bingo” is different from “Loonie Progressive Bingo”; see “9.4.1(G) Loonie Progressive game”, and “9.4.2(E) Loonie Progressive game” for more information.)
The following licensing policies apply to Loonie Pot Bingo:
Decision Bingo differs from Regular Bingo in two ways:
Players purchase chips at $0.25 each for (a) buying regular bingo paper in single strips and/or books for an amount authorized by the licensing authority, and (b) upping the ante.
Before the start of each game, the caller announces the number of cards in play. After three numbers have been called, the players must decide whether or not to continue playing. If a player continues, the player must ante one chip ($0.25) after each three numbers have been called. The game continues until a one-line bingo winner is declared. The prize awarded is the total value of the antes received during the game, up to a limit of $100.
The following licensing policies apply to Decision Bingo:
9.3.2 (d) (ii) Decision Bingo terms and conditions
In addition to the Regular Bingo reporting requirements, the additional terms and conditions require that Decision Bingo financial reports include:
Table Board Bingo, also known as “shutter board” bingo, is a bingo game played on a mechanical table board bingo device. This device contains permanent bingo cards and shutters. A player marks a number by covering it with a shutter. The prize amount is variable and is determined by the number of boards in play.
A municipality may license an eligible organization to conduct Table Board Bingo as a Regular Bingo event or as part of a Regular Bingo event, where the total prize board for the event does not exceed $5,500.
See “9.4.1(E) Table Board Bingo”, for licences issued by the Registrar.
The following policies apply to municipally issued licences for Regular Bingo events that are made up entirely of Table Board Bingo or include Table Board Bingo games as part of the Regular Bingo prize board:
9.3.2(F) Media Bingo
Pursuant to the Order-in-Council, a municipality may issue licences allowing eligible organizations to conduct a Media Bingo event with prize boards that do not exceed $5,500.
Media Bingo is operated through the public media including radio, newspaper, or television. Media Bingo differs from Regular Bingo in that the licensee may only sell bingo cards that have a clearly visible, consecutively numbered serial number. This is for tracking purposes, as bingo cards are usually distributed to local merchants who sell the bingo cards on behalf of the licensee organization. The licence number must appear on all Media Bingo cards.
Persons who have covered the specified arrangement of numbers required to win would call a local telephone number to register their “bingo” and provide their card to the licensee in order to collect their prize.
Radio Bingo
Games may be aired on the radio in one of two ways:
Newspaper Bingo
The bingo numbers are published in a local newspaper and run for a period of time, usually two to four weeks in length, with a few called numbers being published each day. The game proceeds until a winner has been declared.
Television Bingo
This type of bingo is usually aired over a local cable television station in a half-hour or hour-long program. The winner is the first person to phone in and claim a bingo during the broadcast.
The following licensing policies apply to Media Bingo:
Applicants must submit their bingo licence applications to the municipality in which the bingo event is to be held. The following documents must be submitted:
This section contains information on licences issued by the Registrar for the following types of games and events:
The Registrar has the sole authority to issue a licence for a break open ticket event to be held in conjunction with another licensed gaming event. Even if the municipality licensed the related bingo event, only the Registrar may issue the licence for the break open ticket event.
The municipality may only licence a break open ticket event if it is not held in conjunction with another gaming event.
Please see “Chapter 7: Break Open Tickets”, for further information.
The Registrar licenses all Regular Bingo events to be conducted in unorganized territories, on Crown lands and in First Nations communities (except those who exercise licensing authority under an Order-in- Council). Applicants must follow the application procedures for obtaining a licence issued by the Registrar.
The following policies apply only to Special (Monster) Bingo events:
Special Bingo events are limited to one licence per 15 days, per 30-km radius, in the following areas:
Super Jackpot Bingo is a separately licensed bingo game that is part of a Regular Bingo event. The Super Jackpot Bingo prize is in addition to the Regular Bingo event prize board.
The Super Jackpot prize is awarded based on a set, increasing number of bingo numbers called at successive Super Jackpot games. A player must complete a full card in order to win the Super Jackpot prize. Fifty bingo numbers are called at the first Super Jackpot game. At each successive game, the number of bingo numbers called increases by one until the Super Jackpot game has been won.
The licensee must award a consolation prize when the Super Jackpot is not won within the designated number of bingo numbers called.
Once a Super Jackpot has been won, a new game begins at the next Super Jackpot game covered by the licence. If the Super Jackpot prize has not been won prior to the end of the licence period the prize will be carried forward to the new licence period.
Licensees should apply for their new licence at least 45 days before the end of their current licence period, to ensure that a new licence can be issued before the current licence expires. If a licensee is conducting the last game in a licence period, and the licensee will not be obtaining another licence, the full Super Jackpot prize must be awarded.
The following policies apply to Super Jackpot Bingo games:
- “Horizontal” licences allow licensees to offer different Super Jackpot prize boards in conjunction with Regular Bingo events. A “horizontal” licence limits a Super Jackpot prize to a single time slot per day. For example, a licensee could have one “horizontal” licence for a 2:00 p.m. slot and another licence for a 7:00 p.m. slot. If the jackpot is not won at the 2:00 p.m. slot, it must be carried over to the 2:00 p.m. time slot on the next day. Similarly, if the jackpot is not won at 7:00 p.m., it must be carried over to the next 7:00 p.m. time slot.
Example: Horizontal Super Jackpot Licences A, B, C = Separate Horizontal Licences # = Number of Balls called in Super Jackpot Game * = Super Jackpot Winner |
|||||||
|
Sun. |
Mon. |
Tue. |
Wed. |
Thu. |
Fri. |
Sat. |
2 p.m. |
A-> |
A -> |
A -> |
A (Win)* (53#s) |
A (New)-> |
A -> |
A -> |
7 p.m. |
B -> |
B -> |
B -> |
B -> |
B -> |
B*(Win) (55#s) |
B (New) (50#s) |
10 p.m. |
C -> |
C -> |
C -> |
C -> |
C -> |
C -> |
C -> |
- A “vertical” licence allows licensees to offer Super Jackpot games only at Regular Bingo time slots that have the same Super Jackpot prize board. With a “vertical” licence, the Super Jackpot is carried over to the next time slot with the same prize board, until it is won. For example, it can be carried over from the 2:00 p.m. slot to the 7:00 p.m. slot, providing they have the same Super Jackpot prize board.
Example: Vertical Super Jackpot Licence V = Vertical Super Jackpot Licence # = Number of Balls called in Super Jackpot Game * = Supper Jackpot Winner |
|||||||
|
Sun. |
Mon. |
Tue. |
Wed. |
Thu. |
Fri. |
Sat. |
2 p.m. |
V (50#s) vI |
V (53#s) vI |
V (Win)* (56#s) - |
V (52#s) vI |
V (55#s) vI |
V (58#s) vI |
V (New) (50#s) vI |
7 p.m. |
V (51#s) vI |
V (54#s) vI |
V (New) (50#s) vI |
V (53#s) vI |
V (56#s) vI |
V (59#s) vI |
V (51#s) vI |
10 p.m. |
V (52#s) vI |
V (55#s) vI |
V (51#s) vI |
V (54#s) vI |
V (57#s) vI |
V (Win)* (60#s) - |
V (52#s) vI |
Example: Monthly Super Jackpot Disbursements Total Net Proceeds to be Disbursed to All Member Groups = $15,000 Total # of Regular Bingo Events (“Events“) = 10 |
|||||
Groups |
# of Events |
|
Share* |
Amount** |
Year to Date*** |
Charity A |
3 |
X |
1500 |
$4,500 |
- |
Charity B |
2 |
X |
1500 |
$3,000 |
- |
Charity C |
2 |
X |
1500 |
$3,000 |
- |
Charity D |
3 |
X |
1500 |
$4,500 |
- |
Totals: |
10 |
|
|
$15,000 |
|
*Share = Total net proceeds divided by total number of events **Amount = Share multiplied by number of events per group ***HCA should also keep a running total of disbursements for year-to-date. |
The Super Jackpot licence fee would be calculated as
180 x ($3,000 + $300) x 40% x 3% = $7,128.00
Table Board Bingo may be licensed by the Registrar in one of the two following ways:
The following policies apply to Table Board Bingo events licensed by the Registrar:
The following policies apply to the use of Table Board Bingo devices:
See 9.3.2 (E), “Table Board Bingo,” for information about municipal Table Board Bingo licensing.
A Progressive Bingo game is a separately licensed bingo game, held in conjunction with a Regular Bingo event, where the prize amount increases from event to event. If the progressive prize is not won at
one event, it is added to the amount of the prize to be awarded at the next Progressive Bingo game. The progressive prize increases at each successive event until the specified limit is reached or until the progressive prize is won.
The licensee must award a consolation prize at every event whether or not the main Progressive Bingo game prize is won. The structure of the consolation prize must be described on the game schedule of the Regular Bingo event during which the Progressive Bingo game will be conducted.
The dollar amounts of the Progressive Bingo game prize and the consolation prize must be announced prior to the commencement of each game.
Rules of play
Progressive Bingo games must be managed and conducted in accordance with Rules of Play that are attached to and form part of the Progressive Bingo Game Licence Terms and Conditions.
A licensee has the option of conducting and managing up to two Progressive Bingo games in conjunction with any one licensed Regular Bingo event. Under this option licensees may apply for:
» Rules of Play “B” –“$10,000 Progressive-style game”, or;
» Rules of Play “C” –“$5,000 Progressive-style game”, or;
» Rules of Play “D” –“Two $5,000 Progressive-style games”.
The following policies apply to Progressive Bingo games:
» A principal officer from each member organization of the HCA must sign the Progressive Bingo game licence application.
» The HCA must use a separate lottery account designated as a “trust account” by the bank or other financial institution to administer the Progressive Bingo game licence.
» The HCA must maintain a separate ledger for each Progressive Bingo game licence.
» The HCA must prepare a separate Progressive Bingo game report for each Progressive Bingo game licence.
» The HCA must submit a prescribed financial report to the Registrar by the 15th day of the following month.
4 events per day x $12 = $48 x 7days = $336 x 26 weeks = $8,736.00
The Loonie Progressive game is a separately licensed game that is played during the Regular Bingo event where the prize amount increases from event to event. If the Loonie Progressive game prize is not won, it is added to the amount of the prize to be awarded at the next Loonie Progressive game event. The Loonie Progressive game prize is allowed to increase at each successive event to a maximum of $5,000 or until the prize is won. Players must purchase a Loonie Progressive game ticket and paper for the Regular Bingo event in order to play the Loonie Progressive game. Licensees may offer the Loonie Progressive game in two game formats each of which is governed by its own set of Rules of Play.
The Loonie Progressive game must be conducted and managed in accordance with the Rules of Play that are attached to and form part of the Loonie Progressive Game Licence Terms and Conditions:
Prior to the commencement of each licensed Regular Bingo event, a bingo ball is randomly drawn from the bingo blower. The number on the drawn bingo ball becomes known as the “Indicator Number.”
The “Indicator Number” (bingo ball) must be clearly shown and announced to all players in the hall and returned to the bingo blower before the bingo session begins. If the Indicator Number is drawn, the bingo ball drawn immediately after the Indicator Number is the Loonie Progressive game number.
The player or players who have a valid Loonie Progressive Game “A” ticket and complete the specified arrangement of numbers when the Loonie Progressive Game Number is called win the Loonie Progressive Game “A” prize. Whether or not the Loonie Progressive Game “A” prize is won, no amount may be awarded as a consolation prize.
The Loonie Progressive game prize must be calculated and awarded in accordance with the Loonie Progressive Rules of Play Game “A” attached to and forming part of the Loonie Progressive Game Licence Terms and Conditions.
In order to play Game B, players must purchase a Loonie Progressive Game “B” ticket. Unlike in Game A, there is no indicator number drawn.
The Loonie Progressive Game “B” prize is awarded to the player who completes the specified arrangement of numbers on the bingo paper within a designated number of calls and has a valid Loonie Progressive Game “B” ticket.
If the Loonie Progressive Game “B” prize is not won and the prize has accumulated to $5,000, the designated number of calls must increase by one at each session until the Loonie Progressive Game “B” prize is won.
The Loonie Progressive game prize must be calculated and awarded in accordance with the Loonie Progressive Rules of Play Game “B” attached to and forming part of the Loonie Progressive Game Licence Terms and Conditions.
The following policies apply to both game formats for the Loonie Progressive game:
» name of the Loonie Progressive game participant;
» hall location, session, date and time of the Loonie Progressive game event;
» total prize amount that may be awarded;
» the price to play the Loonie Progressive game;
» ticket number (all tickets must be sequentially numbered)
The following licensing policies apply to the Loonie Progressive game:
4 events per day x $2 = $8 x 7days = $56 x 26 weeks = $1,456.00
Where an HCA exists, only the HCA may apply for a licence to conduct and manage the Loonie Progressive game. Where no HCA exists, the individual licensee may apply for a licence to conduct and manage the Loonie Progressive game.
Loonie Progressive game applicants must submit the following information with the application:
On the financial report licensees are required to specify the ticket numbering system used for the Loonie Progressive Game “B” tickets. Any tickets that are void must be accounted for on the financial report and the original void tickets must be submitted with the financial report.
The following policies apply to an HCA with respect to Loonie Progressive game licences in a non-pooling hall:
The following procedures apply to bingo licences issued by the Registrar: Applications must include:
» the bingo games to be played;
» the winning arrangement of numbers for each game;
» the value of the prize for each game;
» the minimum and maximum payouts for variable prize games;
» the prices of the bingo paper;
» the total value of all prizes offered for the bingo event;
» any special purchase provisions for used bingo paper exchanged for new bingo paper (for example, $0.25 instead of $0.50); and
» the start and end time for the time slot during which the Regular Bingo event and any licensed lottery events/games conducted in conjunction with it will be held.
First-time applicants must allow a minimum of 45 days for the Registrar to process their licence application.
The Registrar will:
Super Jackpot licence applicants must comply with the following procedures:
Organizations submitting Table Board Bingo applications to the Registrar must comply with the following procedures.
Progressive Bingo game licence applicants must comply with the following procedures:
» a list of all organizations that are members of the association; and
» the signature of an authorized principal officer from each member organization, verifying that he or she has read, understands and agrees to comply with the Progressive Bingo Game Licence Terms and Conditions.
» notify an applicant if its application is deficient, requesting the missing documents; and
» communicate only with the appropriate contact person of the HCA, as listed on the application form (for example, a member-in-charge or a principal officer of the association), regarding applications, licences and amendments.
Super Ball Bingo is a Regular Bingo game where the prize value is based on a dollar amount multiplied by the number called from a designated ball.
Super Ball Bingo may only be licensed if:
» a minimum and maximum potential prize payout, and
» the rules for determining the prize (for example, an amount multiplied by the last or first number called).
“Pay as you play” bingo (or “walk-in” bingo) refers to a way of playing bingo, rather than a specific type of game. At “pay as you play” bingo, patrons purchase bingo paper for only the games they wish to play and are not required to buy bingo paper for the whole event.
“Pay as you play” bingo games may be licensed, provided the following conditions are met:
The licensing authority must review each proposal to determine that there is proper accountability in the operation of the bingo event. Each proposal must include:
The following types of bingo games must not be licensed:
Licensed charitable organizations are responsible for the conduct and management of bingo events. While only a licensee’s members, employees or volunteers may carry out certain duties, other duties may be carried out by an Operator registered under the Gaming Control Act, 1992.
» supervising the handling of all revenues generated from its own licensed events;
» paying expenses, including hall rental, advertising and reimbursement for bona fide member expenses; and
» setting up and maintaining the lottery trust account(s), including depositing all incoming monies.
» selling bingo paper and tracking sales;
» cash counting and reconciliation; and
» responding to customer complaints.
Each licensee is responsible for deciding how to staff its bingo events, as long as the minimum of three (3) bona fide members of the licensed organization are present to conduct and manage the event.
1. In addition to three (3) bona fide members, licensees may staff their events with any combination of:
2. If the Operator of the bingo hall provides all the runners as in 1(c) above, the licensee and the Operator share the entire staffing costs. When the staffing costs are shared:
For an example of how to calculate the amounts to be distributed to the Operator of the bingo hall and the licensee when the cost of runners is shared, please refer to Figure 1.
Fig. 1: Sharing the Cost of Runners Between the Hall and the Licensee Scenario
$7.00 x 4 = $28.00 $28.00 x 3 = $84.00
$7.00 x 0.10 = $0.70 0.70 x 4 = $2.80 2.80 x 3 hours = $8.40
Total Costs of the Bingo Event |
|||
Gross Receipts |
|
$5,000 |
|
Less(-) Prizes |
|
(4,000) |
|
|
Gross Profit |
$1,000 |
|
|
|
|
|
Licence Fee |
$120 |
|
|
Actual staffing costs (84.00 + 8.40) |
92.40 |
|
|
HST (92.40 x 0.13) |
12.01 |
|
|
Advertising (2% of prize board) |
80.00 |
(304.41) |
|
Less total costs |
$304.41 |
|
|
Net Profit before hall expenses |
$695.59 |
|
|
|
|
||
Hall Operator’s Amount (695.00 x 40%) |
$278.24 |
|
|
+HST on Hall Rental |
36.17 |
(314.41) |
|
Less total Hall costs |
$314.41 |
|
|
Net Profit/Licensee’s amount |
$381.18 |
|
|
|
|
|
|
Less out-of-pocket expenses for designated members in charge |
($30.00) |
|
|
|
Net Licensee amount |
$351.18 |
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The terms and conditions for bingo licences describe how a licensee must distribute the gross receipts from bingo events. The licensee must calculate the distribution of the gross receipts from the bingo events based upon whether or not it uses the services of a registered Operator of a bingo hall and, if so, which services are provided.
In order to calculate the amount to be paid to the Operator (the hall rent), the licensee must first deduct from the gross receipts the other eligible costs incurred in the conduct and management of the bingo event. These expenses may include the prizes, licence fee, bona fide member expenses, advertising and promotion, hand-held personal bingo verifiers and the cost of transportation as approved by the licensing authority. The amount calculated by deducting these expenses from the gross receipts is referred to as the “Base Amount.” The licensee must then use this “Base Amount” to calculate the hall rent payable to the Operator of the bingo hall for goods and services provided to the licensee for the bingo event, as outlined in 9.6.3(a) to (c).
Calculating the base amount
Less(-) (Prizes + licence fee + reimbursements* + advertising and promotional costs + authorized transportation + hand-held personal bingo verifiers)
Equals (=) Base Amount
*Refers to out-of-pocket expenses or staffing costs of runners shared with the hall
Any remaining expenses (including, but not limited to: bingo paper, security, storage, equipment, costs related to the building and employee wages) must be paid by the Operator of the bingo hall.
If the Operator or its employees makes an error that results in a cash shortage, this shortage must be deducted from the amount paid to the Operator.
The licensee must keep a minimum of 60 per cent of the Base Amount and pay the Operator either a maximum of 40 per cent of the Base Amount, or up to 15 per cent of the gross receipts, whichever is less.
The licensee must keep a minimum of 60 per cent of the Base Amount and pay the Operator either a maximum of 40 per cent of the Base Amount or 14 per cent of the gross receipts, whichever is less.
When the licensee and the Operator of the bingo hall share the cost of the runners, the licensee’s share of the staffing costs is paid from the amount allowed for reimbursement of out-of-pocket expenses, which is a maximum of three (3) per cent of the Regular Bingo prize board for that event.
The licensee must keep a minimum of 60 per cent of the Base Amount and pay the Operator either a maximum of 40 per cent of the Base Amount or 14 per cent of the gross receipts, whichever is less.
Total expenses are capped at 15 per cent of gross receipts, not including the HST. The terms and conditions outline the allowable expenses.
In Super Jackpot calculations, only the prizes, licence fees and advertising and promotion costs are deducted from the gross receipts:
Gross Receipts – (Prizes + Licence Fee + Advertising and Promotion Costs) = Base Amount.
The HCA must keep a minimum of 60 per cent of the Base Amount and pay the Operator a maximum of 40 per cent of the Base Amount, up to a maximum of 15 per cent of the gross receipts, whichever is less.
For an example of how to calculate the monthly Super Jackpot disbursements to a Hall Charities Association’s member groups, please refer to the example in “9.4.1(d)(2)”.
For all other bingo events licensed by the Registrar and conducted in registered charitable gaming sites, licensees must use the “Base Amount” to calculate the hall rental payable to the Operator, as outlined in Section 9.6.3(a) to (c).
At bingo events where American currency is accepted, the total gross receipts are affected by the value of the American dollar. All administrative expenses must be paid in Canadian funds, and the amount of adjusted gross receipts must be calculated taking into account the value of the American currency converted into Canadian dollars.
The Registrar has established guidelines giving licensees and Operators of bingo halls a wide variety of options for bingo advertising and promotion. Allowable bingo advertising and promotions activities include:
Licensees and Operators are responsible for ensuring that they comply with the Registrar’s policies, the Criminal Code (Canada), the Gaming Control Act, 1992 and Regulations and any other applicable municipal, provincial and federal legislation. Licensees and Operators may contact the AGCO for clarification on AGCO policies.
Licensees may choose to advertise and promote their events:
Licensees that choose to market their events together and/or in conjunction with an Operator of a bingo hall must develop a joint marketing plan, as outlined in “9.7.4”.
The content of all bingo advertising and promotion, including graphics, must comply with the policies outlined in “3.3.2. Advertising Content guidelines”, and the policies listed below:
» the name of the eligible charitable organization conducting the event, and
» the lottery licence number(s).
The licensees in an HCA may decide to market their events together or in conjunction with the Operator of the bingo hall. Each licensee who wishes to participate must consent in writing to the marketing plan. Licensees may develop only one joint marketing plan per hall. A licensee may choose to opt out of the joint marketing plan and conduct its own advertising and promotion.
The licensees must develop a joint marketing plan through the HCA. If the Operator is sharing the cost of the plan, the Operator will be involved in the development of the plan as well.
The joint marketing plan must outline:
Joint advertising costs must be shared between the HCA and the Operator on a 60/40 (HCA/ Operator) basis. The licensee or HCA must contribute its 60 per cent from the up to two (2) per cent it is allowed to spend for advertising. The two (2) per cent must cover the total amount of a licensee’s advertising and promotional activity, including amounts spent independently or jointly.
See “9.7.5. Setting aside funds for advertising and promotion” for further information.
Licensees may set aside an amount of up to two (2) per cent of the Regular Bingo and Table Board Bingo prize board for advertising and promotion activities and up to two (2) per cent of the actual prizes awarded from their Super Jackpot, Progressive Bingo Game and Loonie Progressive Game events.
Members of the HCA who are participating in the joint marketing plan as described in 9.7.4 must submit the agreed upon amounts to the HCA.
Licensees who participate in joint advertising may also conduct their own independent advertising plan, provided they have funds remaining within the allowable limits.
No limit has been set on the amount an Operator of a bingo hall can spend on its own independent advertising and promotional activities.
When an Operator is participating in joint advertising and/or promotion with an HCA, the Operator’s contribution is limited to 40 per cent of the entire cost of the activities.
Licensees who advertise and promote their events independently must deposit funds, up to the prescribed limits, in a separate designated trust account used solely for advertising expenses. Each licensee member of an HCA must submit a report to the HCA outlining:
HCAs must provide member organizations and the Operator of the bingo hall with a quarterly report, including:
At any time, an HCA may return accumulated, unused advertising and promotion funds to the Operator and licensees. The amount returned must be based on the amounts contributed by the individual licensees and the Operator.
Licensees who are carrying out independent advertising and promotion activities must submit quarterly reports on these activities to the HCA.
Licensees and Operators may offer giveaways of non-gaming products to customers and prospective customers. The following policies apply to giveaways:
While both Operators and licensees may stage promotional contests, there are some restrictions:
A third party or an Operator may donate prizes to be given away as part of an Operator or licensee- run promotional contest in exchange for promotional consideration only. No other form of payment is permitted. Operators and licensees may not contract with a third party to offer inducements, such as gifts or the chance to receive a gift, to play games of chance. Operators and licensees must ensure that all promotional contests comply with the relevant municipal, provincial and federal legislation.
Operators and/or licensees may establish customer loyalty programs that reward customers for their patronage, based on the frequency of their visits. A “visit” is defined as one session of not less than 1.5 hours. Customers may redeem their accumulated loyalty points for rewards in the form of giveaways of non-gaming products. Customer loyalty points cannot be redeemed for cash.
If customer loyalty programs are part of a joint marketing plan between licensees and the Operator of the bingo hall, the licensees’ share of the costs, including administration and rewards, must fall within the prescribed limits for advertising and promotion.
Customer loyalty programs may be shared across charitable gaming sites, including those belonging to different Operators, and across geographic/municipal boundaries.
If the organization discontinues the program or ceases operation, the program will constitute a liability, based upon points and/or rewards earned by customers. An organization offering a customer loyalty program must be able to fund this liability.
Customer loyalty programs must be pre-approved by the Registrar in writing. Licensees and/or Operators must submit a detailed proposal containing:
Licensees and Operators may use customer tracking systems to record the information necessary to operate their customer loyalty programs. The tracking system may be as simple as punch cards or as sophisticated as electronic cards. In most cases, the suppliers of the customer tracking systems will not be required to register under the Gaming Control Act, 1992. However, the Registrar may require that a supplier be registered under the Act in order to contract with an Operator and/or licensee to track points or guarantee liability.
The Registrar will make registration decisions on a case-by-case basis, prior to granting program approval. Also, at any time the Registrar may require that a supplier be registered.
Licensees and Operators may use direct mail advertising to communicate with existing customers only. The mail must be addressed to the intended recipient. The licensees/ Operator must compile a formal mailing list of the names and addresses of actual customers at that bingo hall. The list must be available for inspection by the licensing authority.
Licensees and Operators may sell gift certificates or offer them as promotional items. These gift certificates may only be redeemable for cash or non-gaming products. Each gift certificate must state its restrictions, such as what it may be redeemed for, when it may be used and its expiry date. The cost of a gift certificate must be the same as its redemption value.
Gift certificates produced by a licensee may only be sold during that licensee’s events. This must be stated on the certificate.
As gift certificates are the equivalent of cash, they represent a liability for the issuing organization. Licensees and Operators must:
Licensees and Operators who intend to sell gift certificates must develop a policy outlining:
While the Registrar does not have to approve the policy or the accounting measures in advance, the licensee or Operator must be able to provide them for inspection or audit purposes.
The Registrar permits three types of advertising outside the bingo hall:
For advertising that contains both event-specific and non–event specific advertising, a licensee or an HCA may share the cost with an Operator of a bingo hall. Such advertising may contain, for example, information about specific games to be played and general information about the hall, including promotional activities.
When licensees or HCAs and Operators wish to engage in such joint advertising, they must develop a joint marketing plan, as outlined in Section 9.7.4. and make it available upon request by a licensing authority.
Operators and licensees/HCAs may engage in non–event specific advertising, either jointly or independently.
Only licensees, either individually or through a HCA, may engage in event-specific only advertising.
Third parties (parties other than licensees or Operators) may not financially contribute to advertising outside the hall, but they may provide promotional considerations in return for advertising. For example, a company may provide a product giveaway that goes directly to players, in return for being mentioned in an advertisement.
If a third party sponsor is mentioned in an advertisement containing event-specific information, the licensee’s name must be featured more prominently than that of the third party sponsor.
Operators may offer advertising space within the hall to third party sponsors only in return for promotional considerations that go directly to players. Operators may not sell advertising space.
This section covers expenses that the licensee may incur during the conduct and management of bingo events. These expenses include:
Advertising and promotion costs are covered in Section 9.7.1.
The municipality or the Registrar may charge a licence fee for any Regular or Special Bingo. The municipality or the Registrar may charge a licensing fee as a flat rate or as a percentage of the prize board, as long as the total amount does not exceed the Registrar’s prescribed maximum lottery licensing fee. The licence fee for variable prize board events is calculated based on the value of the maximum licensed prizes.
Up to one (1) per cent of the gross Super Jackpot receipts, break open ticket receipts, Table Board Bingo receipts, Progressive Bingo game receipts, Loonie Progressive game receipts and up to one (1) percent of the gross pooled bingo receipts may be used to pay for bookkeeping and administrative costs, (including HST) associated with each type of lottery. The HCA must pay for these costs from the HCA’s share of the net proceeds. Only actual expenses may be charged. The one (1) per cent is a maximum allowable expense and must be supported by invoices. Funds to pay for administrative costs may not be pooled into a separate account.
The HCA cannot pay any of the one (1) per cent allowed for bookkeeping and administrative tasks to:
Operators and licensees may contract with transportation companies to bring customers to a bingo hall only under special circumstances and with the prior written approval of the licensing authority. The following policies apply to transportation to bingo halls:
The Operator or licensee may provide passengers with free coupons, contest entries or other in-hall giveaways under the following conditions:
A personal bingo verifier (PBV) is a hand-held device that individual bingo players may use to track and verify numbers as they are called by the bingo caller during the bingo game. Under no circumstances does a PBV replace the conventional method of playing bingo with bingo paper and dabbers; rather, it is meant to assist the player with playing their cards or paper.
The provisions for the use of the PBV are set out in the Regular and Special Bingo Licence Terms and Conditions. Pursuant to the terms and conditions, licensees may choose to offer the use of hand-held PBVs provided:
Other provisions:
An organization’s licensing privileges may be jeopardized if it makes the following types of ineligible payments:
This list is not exhaustive. The licensing authority may deem other types of payments and expenses ineligible as well.
A Hall Charities Association (HCA) is an association formed by the individual charitable organizations conducting Regular Bingo events at a bingo hall. All charitable organizations using bingo halls where four or more events are held within a seven-day period must form a HCA. (See “Chapter 10: Bingo—in Pooling Bingo Halls”, for further information.)
In bingo halls where three or less events are held within a seven-day period, the formation of an HCA is optional.
When setting up an HCA, the member organizations must adopt a constitution and bylaws outlining their administrative objectives and establishing criteria for:
The HCA has several important functions:
The HCA’s responsibilities are detailed in the terms and conditions of the licence. In general, an HCA:
The above tasks may be performed in consultation with the Operator of the bingo hall.
In the case of a loss at a bingo event, the licensee must pay the prizewinners first. The payment may be made from the float and the gross receipts of the event. If there is still not enough money to pay the prizes, the organization may pay the prizewinners by cheque from its lottery trust account.
The Operator of the bingo hall and the licensee must share the responsibility for a bingo loss. The licensee is responsible for 50 per cent of the loss and the Operator is responsible for the remaining 50 per cent.
When there is a loss at an event, the licensee cannot reimburse bona fide member expenses.
A licensed organization must open and maintain a separate lottery trust account, designated as a trust account by the branch of a recognized financial institution, in the Province of Ontario. The designated lottery trust account must be in Canadian funds. If the licensee (except for an HCA) conducts more than one type of lottery event, it may hold either one designated lottery trust account for all lottery proceeds or a separate designated lottery trust account for each type of lottery.
Licensees that are permitted to accept American currency must also maintain a trust account in American funds, as set out in “3.6.5. Lottery Trust Accounts for American Currency”.
If the licensee maintains only one lottery trust account, the licensee must keep a separate ledger for each type of lottery event and for each licence issued. The bookkeeping and accounting requirements for each type of lottery are covered in detail in the terms and conditions for each type of licence.
See also “3.6.1. Designated lottery trust accounts” for further information.
The terms and conditions of lottery licences require organizations to provide the licensing authority with a verified financial statement within 180 days of the organization’s year-end. The type of financial review required depends upon the licensee’s gross annual revenues from all sources.
Licensees that receive less than $250,000 in gross annual revenues must prepare financial statements in accordance with the standards set out in the CPA Canada Handbook.
Licensees that receive $250,000 or more in gross annual revenues must prepare financial statements in accordance with the standards set out in the CPA Canada Handbook and have them audited by a public accountant.
The licensing authority may require an audited financial statement to be prepared at the licensee’s expense at any time.
See “3.6.6. Financial statements for lottery trust accounts” for further information.
Eligible organizations conducting bingo events in towns that border the United States may accept American currency during the conduct of bingo events, which may include break open ticket sales.. Licensees that are permitted to accept American currency must maintain a separate trust account in American funds, as set out in Section 3.6.5., “Lottery Trust Accounts for American Currency.”
If the patron purchases bingo paper in American funds, the licensee must pay out any prizes won in American funds. If the paper is purchased in Canadian funds, the prizes must be paid out in Canadian funds. Charitable organizations may apply house rules that may or may not require patrons to buy all bingo paper, including specials, in the same currency. These rules must be clearly displayed.
Eligible organizations that accept American currency must keep separate Canadian and American lottery trust accounts that have been designated as trust accounts by the branch of a recognized financial institution in Ontario, and must deposit the funds into the corresponding account. Hall Charities Associations must maintain a separate American trust account for each type of licensed event.
The organizations must pay all lottery expenses and draw funds for approved eligible uses by cheque from the Canadian account. The American account may only be used to deposit the American currency collected during the event, with the exception of withdrawals for a cash float for the conduct of a bingo event. Expenses, donations or any other withdrawals cannot be made from this account unless the licensing authority grants permission. The maximum amount that may be accumulated in this account is the total value of the prize board.
When enough money (more than the licensed prize board) has accumulated in the American account, it must be transferred to the Canadian bingo lottery trust account.
The date of the transfer, the exchange rate, and any premium or loss (at buying rate), as well as any donations made from the Canadian account, must be recorded on the financial report form and in the financial ledgers.
The licensee may transfer funds from the American account to the Canadian account without the pre- approval of the licensing authority. The licensee must transfer funds if the licensing authority requires them to be transferred.
Electronic funds transfer (EFT) allows for the transfer of funds between accounts by electronic means. EFT may be used:
The provisions for licensees and HCAs that choose to implement EFT are detailed in the Financial Management and Administration of Non-Pooling Bingo Halls Terms and Conditions. In general:
The licensee and HCA must not use other forms of electronic banking such as:
EFTs must not be used to pay for certain expenses including:
Please refer to the Financial Management and Administration of Non-Pooling Bingo Halls Terms and Conditions for further information.
This chapter contains the policies and procedures for licensing charitable gaming events, including bingo and break open ticket events, in pooling bingo halls. The Registrar’s licensing framework for charitable gaming events in pooling bingo halls is also known as the Bingo Revenue Model (BRM).
The BRM is governed by:
The Lottery Licence Terms and Conditions (a) are the core terms and conditions common to all lotteries with the focus on honesty, integrity and accountability.
The Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions (b) are the terms and conditions specific to pooling bingo halls with the focus on the conduct and management and rules of play.
The Financial Management and Administration of Pooling Bingo Halls Terms and Conditions (4242) are the terms and conditions specific to pooling bingo halls with the focus on financial management and administration.
Standards and Directives (d) are issued by the Registrar as required.
Both the municipal licensing authority and the Registrar are involved in issuing either charitable gaming event licences or authorizations, consistent with the Order-In-Council. (See also “Order-in- Council 208/2024”)
Bingo halls that do not pool operate under another revenue model (60/40 split with caps), terms and conditions and policies and procedures as set out in Chapter 9, “Bingo—In Non-Pooling Halls.”
Hall Charities Associations have the option to adopt pooling and operate under the BRM.
The BRM applies to all pooling bingo halls. While the role of provincial and municipal licensing authorities remains in place, this model provides for flexibility in how charitable games are licensed, managed and conducted. Highlights of the BRM include:
A key component of the framework is that it allows for flexibility in designing games and game schedules as the charities, with the advice of the hall, best see fit to meet their market needs. However, recognizing that accountability and public confidence in the games must be maintained, the following set of guidelines may be used to assist in game development and as a review tool for the licensing official for determining appropriate game schedules. If a licensing official receives an application for a bingo game that he or she is not familiar with, the official must first ensure that the bingo game in question is one for which a licence is available.
Pre-called games are bingo games where a large number of calls are required to determine a winner, so some numbers are called at the beginning of the event to allow the game to be played more quickly. Pre- called games are usually games that will offer larger prizes and are often referred to as “Special“ games. Sealed bingo cards must be used for pre-called games.
The U Pick game (also known as “pick a bingo” or “do-it-yourself bingo”) allows players to choose the numbers on their game cards. The following procedures must be followed for this game to be approved on the schedule:
The following details must be provided at the time application is submitted:
The above information must be made readily available to all customers and may be made available through a combination of:
Step 1.0: HCA Administrator receives and reviews individual charity applications
Each member organization of the Hall Charities Association (HCA) must complete the Charitable Gaming Application form (4220) and submit it to the HCA Administrator along with its municipal authorization fee and a signed member declaration form.
Step 2.0: All applications and supporting documentation are compiled for each pooling bingo hall
All applications are compiled along with supporting documentation to form a complete package for each pooling bingo hall.
The HCA Administrator assembles all the CGAFs, municipal authorization fees and member declaration forms to be sent to the municipal licensing authority.
The HCA Administrator must complete and provide the following supporting documentation to the municipal licensing authority:
Step 3.0: Package received
Upon receipt of all of the documentation noted in step 2.0 above, the municipal licensing authority is responsible for:
Step 4.0: HCA administrator submit gaming summary package to AGCO
HCA Administrator required to complete Bingo Hall Charity Association Licence application to the Registrar.
Step 5.0: Bingo lottery events conducted
Applications
MUNICIPAL LICENSING AUTHORITY |
REGISTRAR |
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hall and forwards authorizations to the HCA Administrator |
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MUNICIPAL LICENSING AUTHORITY |
REGISTRAR |
Both licensing authorities receive monthly reports, which are due 30 days following the end of each month, from the HCA Administrator detailing:
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» net lottery proceeds received; » all expenses paid; » use of proceeds; and » balance remaining. |
regular intervals as required (see also “10.7.2. Maximum prize board”) |
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Licensing periods
The licensing process for lottery events conducted in pooling bingo halls requires the issuance of an authorization from the municipality and a licence from the Registrar.
The licensing officials must ensure that the authorization and the licence are issued for the same time periods. Since the municipal authorization is issued first, the Registrar’s licence will reflect the authorization period that has been determined by the municipal licensing official.
The licensing period must not exceed one year.
To assist in fulfilling its responsibilities, the HCA must retain the services of a Hall Charities Association Administrator (HCA Administrator) who is registered under the Gaming Control Act, 1992 and meets the applicable Standards for Suppliers of Goods and Services: Bingo.
The HCA Administrator’s responsibilities are set out in the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions. The HCA Administrator coordinates and administers the activities of the HCA including:
The HCA Administrator must be registered as a Gaming-Related Supplier under the Gaming Control Act, 1992, must be able to fulfil all of the responsibilities set out in Section 10.4.1 (above).
An HCA Administrator must not act as a bona fide member in the conduct and management of charitable gaming events at the hall where he/she is the HCA Administrator; however, he/she may serve as a member-at-large of a member organization.
See also “3.5.3. General conflict of interest guidelines”, and “9.2.2. Conflict of interest guidelines” for further information.
In addition to bona fide members, charitable gaming events must be staffed by runners who are provided by the bingo hall. Other responsibilities must be fulfilled by employees of the Operator of the bingo hall registered under the GCA to provide services such as calling the game or selling break open tickets (BOTs).
Bona fide members are needed to meet Criminal Code requirements for charities/licensees to conduct and manage a charitable gaming event. The role of bona fide members is a necessary part of conducting and managing lottery events in a pooling bingo hall.
A minimum of two (2) bona fide members are required to conduct and manage each lottery event for which a licence has been issued.
The role of a bona fide member at a charitable gaming event is detailed in the Terms and Conditions for Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls. The Operator of the bingo hall may provide advice to assist in business decisions.
A runner is a person on the floor whose responsibilities include selling paper, identifying winners and paying out prizes. Runners do not require registration under the Gaming Control Act, 1992 unless their responsibilities include selling break open tickets on the hall floor.
Runners working on the floor of the bingo hall are required to be employees of the Operator of the bingo hall and as a result are paid for by the Operator.
Even though the Operator must provide the runners for charitable gaming events, bona fide members of charities are responsible for the distribution and reconciliation of all bingo paper, break open tickets, and raffles.
In a charity-run bingo hall where four or more lottery events are run within a seven-day period, reimbursement of volunteer runners is not permitted.
A charity-run bingo hall is responsible for ensuring it is meeting all applicable laws as an employer.
Volunteers may be members of the licensees in the Hall Charities Association or family, friends or volunteers from other member organizations who receive no reimbursement for out-of-pocket expenses.
Full-time employees of the charitable organization may volunteer to assist at charitable gaming events, provided that their primary duty is not providing gaming services.
Under the Bingo Revenue Model, after payment of certain expenses, all revenue streams, from gaming and non-gaming sources are split between the charities and the Operator, with 55 per cent to the Operators and 45 per cent to the charities. As shown in Figure B below, revenue streams include:
Key Points
Figure B: Bingo Revenue Model – “Revenue Splits”
Where food and beverage sales at the bingo hall have been contracted out to a third party paying a monthly rental fee to the Operator, all of the gross sales from the canteen must be included in the 55/45 split between the Operator and charities.
Figure C: Financial reporting process for charitable gaming events
Refer to Figure C to guide you through the financial reporting process for charitable gaming events.
Step 1: Charitable Gaming Event Report
Charitable licensees (member organizations) are responsible for event-by-event record keeping at the conclusion of each event and must provide copies of Charitable Gaming Event Reports (Event Reports) to the HCA Administrator, who coordinates monthly reports on their behalf. At minimum, the report must include:
Step 2: Charitable Gaming Report
Charitable licensees must also complete a monthly Charitable Gaming Report showing:
This report must be filed with the municipal licensing authority in order to allow for ongoing reporting relating to the use of proceeds.
Step 3: Bingo Hall Charity Association Report
The HCA Administrator compiles the individual Event Reports on behalf of the member organization into a Bingo Hall Charity Association Report. The report must be submitted, to both licensing authorities, 30 days following month-end and include the following information:
This report, along with the Operator Report (see item 4), must be filed with the municipal licensing authority and the Registrar.
Step 3.A: Provincial licence fee
The provincial licence fee is prescribed by the Registrar and is calculated as a percentage of gross wager on bingo, break open tickets and raffles. The fee must be submitted along with the Bingo Hall Charity Report on a monthly basis.
Step 4: Operator Report
The Operator Report must be completed by the Operator of the bingo hall and submitted to the HCA Administrator on a monthly basis.
The HCA Administrator uses this information to verify gross revenues from the sale of non–gaming related products (for example, concessions, dabbers, and so on). The Administrator may also obtain additional information from the Operator.
If the HCA is not satisfied with the Operator’s Report on the gross revenue from the sale of non–gaming related products, the HCA may withhold the disbursement of funds from the revenue generated as a result of lottery events.
The HCA must report any conflicts or disagreements to the Registrar.
Step 5: Financial statements
The Lottery Licence Terms and Conditions require licensees and HCAs to prepare financial statements covering revenues from all their sources (gaming and non-gaming). The type of financial review required depends upon the licensee’s gross annual revenues from all sources.
If gross revenues are under $250,000, the financial statements must be prepared and approved by the charity’s Board of Directors. If gross revenues are over $250,000 audited financial statements are required.
If gross revenues are under $250,000 but another statute (for example, the Corporations Act) requires audited statements, it must have its statements audited.
(See the Lottery Licence Terms and Conditions “Reporting Requirements”, Sections 3.8 and 3.10 (a) and (b) for more information.)
The financial statements must be made available upon the request of the licensing authority along with any other information the licensing authority deems necessary.
Audit Fees
The licensee is permitted to pay the portion of the audit fee that is related to charitable gaming from gaming revenues.
The licensee must submit a summary of compliance with the terms and conditions, applicable terms prescribed by the Registrar, the Standards and Directives prescribed by the Registrar and any additional terms and conditions imposed by the licensing authority.
See Lottery Licence Terms and Conditions “Reporting Requirements”, Section 3.8(b).
How licensees (with the assistance of Operators) manage their prize boards is a critical component to the success of bingo. In addition to the bingo flexibility framework, the Registrar has prescribed a maximum percentage average of wagering that may be given away as prizes.
While individual games or sessions may be higher than the prescribed percentage in prizes, the overall average over each prescribed three-month period must not exceed the maximum allowable prize board.
To ensure that the prize board averages are being met across the province, each HCA must file a monthly report with the Registrar showing gross wagering and prizes paid.
The HCA must establish a separate ledger for money that is “committed to” or accruing for progressive- style games so that the prize payouts are secure. In other words, there must be sufficient funds in the lottery trust account to pay out the prize money whenever the progressive prize is won.
Only prizes that have actually been won and paid-out should be reported as part of the monthly report in order to calculate the percentage prize board.
The Registrar will conduct a review of prize board averages for each quarter to take into account fluctuations due to payouts for progressive style games and also to allow for seasonal fluctuations.
The Registrar will contact licensees and Operators that are not achieving the required prize board levels to ensure that they are moving appropriately to reduce the prize payouts.
Where the licensee and Operator fail to demonstrate compliance, the Registrar may take disciplinary action, issue directives or utilize regulatory enforcement measures.
The Registrar’s action will be decided on a case-by-case basis, by considering the specific circumstances of each situation.
The following rules apply to lottery trust accounts for individual licensees:
The following rules apply to lottery trust accounts for HCAs in pooling halls:
At the conclusion of the bingo event if there are shortages as a result of errors made by runners on the gaming floor, the responsibility is assumed by the employer (Operator). Where the hall is owned and operated by the charity, shortages are made up based on who supplied the runners for the event. For example, if the event is staffed by volunteers of the licensee, the licensee would be responsible for covering the shortage.
Shortages incurred as a result of the Operator or its employees must be paid to the licensee conducting the charitable gaming event and be included as part of the net deposit for that event.
If the total of all three revenue streams—bingo revenues, other gaming win (for example, BOT sales) and other revenue (food and beverage sales)—results in a loss, the responsibility for the overall loss must be split between the hall and the members of the HCA. The members of the HCA are responsible for 45 per cent of the loss and the Operator of the bingo hall is responsible for 55 per cent.
The licensee may reimburse bona fide members for “out-of-pocket expenses” that are related to the charitable gaming event. These bona fide member expenses may include items such as meals,
transportation and babysitting expenses. Bona fide members may be reimbursed up to $20 per event, with receipts. Reimbursement of out-of-pocket expenses for volunteers is not permitted.
The licensing authority may charge fees not to exceed the amounts prescribed by the Registrar.
The fee, collected by the licensing authority, is submitted by the HCA Administrator on behalf of each licensee as part of its application package.
The HCA Administrator may pay the fee either by one cheque or individual cheques from HCA members.
The Registrar’s fee has been prescribed as a percentage of the gross wager (actual monies wagered) on bingo and break open ticket events.
The Registrar collects licence fees on a monthly basis in arrears.
The fee is reported on and submitted with the Bingo Hall Charity Association Report.
An amount of eight (8) to twelve per cent of all Bingo Win (gross bingo wagering minus prizes) must be set aside for a marketing fund within the hall (see “10.6.1. Revenue splits”, Figure B).
The purpose of the fund is to support the establishment of a marketing plan and the marketing activities it calls for. There must be joint decision making between the licensees and Operator to determine how best to spend this revenue.
The revenues for the marketing fund must be deposited into a designated marketing fund trust account.
Licensees must ensure that the HCA follows the terms and conditions prescribed by the Registrar for the administration of the marketing fund.
A personal bingo verifier (PBV) is a hand-held device that individual bingo players may use to track and verify numbers as they are called by the bingo caller during the bingo game. Under no circumstances does a PBV replace the conventional method of playing bingo with bingo paper and dabbers; rather, it is meant to assist players in keeping track of numbers that have been called.
No prize is paid to a player unless that person has dabbed, at minimum, the winning combination of numbers or symbols required to win on bingo paper prior to calling “bingo”.
See the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions.
PBVs are considered an operational expense and therefore paid for by the Operator of the bingo hall.
The cost of printing programs and posting rules of play at bingo halls is not a marketing expense and must not be claimed within the maximum eight (8) to twelve per cent allowed for advertising and promotions. Programs and Rules of Play are not considered a form of advertising. It is an expense of the Operator.
Please also refer to the Pooling Bingo Halls: Advertising and Marketing Guidelines.
The following policies apply to the Harmonized Sales Tax (HST):
» The HST does not apply to the licensee’s share of the revenue split (45 per cent).
» The HST is payable on the bingo hall’s share (commonly referred to as “hall rent”) as defined in 6.8 of the Financial Management and Administration of Pooling Bingo Halls Terms and Conditions.
See also sample calculation on the following page.
» Bingo halls must collect HST on any taxable goods and service but can claim an input tax credit on any HST paid in providing those goods and/or services.
» HST is not collected from patrons purchasing paper or break open tickets.
» Payment of prizes is exempt from HST.
» HST is not payable as funds accumulate in the marketing fund. However, payments out of the fund (i.e., to suppliers) will be subject to HST unless otherwise specifically exempt from HST
» For all lottery events, the HST paid by the licensee for applicable services and supplies must be reported on the Bingo Hall Charity Association Report form.
For details on specific circumstances and any applicable taxes, please contact the appropriate financial authority.
Example: Calculation of HST on “Hall Rent”
Scenario:
Steps |
|
Example |
|
Step 1. |
Add net bingo revenue (bingo Win minus 8-12% for marketing fund) plus net BOT revenue = (A) |
$1,000.00 |
Net Bingo Revenue |
|
+$500.00 |
Net BOT Revenue |
|
|
=$1,500.00 |
(A) |
|
Step 2. |
Multiply (A) by 0.55 (Hall Operator’s share of gaming revenue) = (B) |
$1,500.00 |
(b) Operator’s share of Gaming Revenue |
|
x 0.55 |
||
|
= $825.00 |
||
Step 3. |
Subtract the HCA’s 45% share of non-gaming revenue (concessions etc.), = (C) From the total in (B) |
$825.00 |
|
|
-$45.00 |
(C) HCA’s share of Non-Gaming Revenue |
|
|
= $780.00 |
(D) Hall Rent |
|
Step 4. |
This number is Hall Rent = (D). The HST is calculated on this number. (D) x .0513 = HST Payable on Hall Rent. |
x 13% |
HST Payable on Hall Rent |
Eligible organizations conducting bingo events in towns that border the United States may accept American currency during the conduct of bingo events, which may include break open ticket sales at bingo halls that have a substantial American clientele.
If the patron purchases bingo paper in American funds, any prizes won must be paid out in American funds. If the paper is purchased in Canadian funds, the prizes must be paid out in Canadian funds.
A Hall Charities Association whose member organizations accept American currency must maintain a separate American lottery trust account that has been designated as a trust account by the branch of a recognized financial institution in Ontario. American funds must be deposited into the American account.
All lottery expenses and funds for approved eligible uses must be paid from the Canadian account. The American account may only be used to deposit the American currency collected during the event, with the exception of withdrawals for a cash float for the conduct of a bingo event. Expenses, donations or any other withdrawals cannot be made from this account unless the licensing authority grants permission.
The maximum amount that may be accumulated in this account must not exceed the licensee’s estimated prize board.
When funds in the American account accumulate in excess of the estimated prize board, they must be transferred to the Canadian lottery trust account. The date of the transfer, the exchange rate and the premium or loss (at buying rate), as well as any donations made from the Canadian account, must be recorded on the financial report form (bingo hall charity association) and in the financial ledgers.
50/50 Draw—a raffle lottery in which the prize is one half the value of all tickets sold during an event or a defined period of the licence.
adjusted gross receipts—the gross receipts adjusted to reflect the value of American currency (in bingo halls where American currency is accepted).
arm’s length—the act of dealing with a person who is not related or a relative but an independent third party. Whether or not persons deal with each other at arm´s length in specific circumstances will be determined by the licensing authority.
Auction-Style Raffle—a raffle lottery using elements reminiscent of an auction for entertainment purposes, in which a series of draws is made during a single event, with one merchandise prize for each draw.
bazaar—a sale of goods held to raise money for a charity. Lottery events held in conjunction with a bazaar must be ancillary to the bazaar itself and require a licence.
bingo—a game of chance where players are awarded a prize or prizes for being the first to complete a specified arrangement of numbers on bingo paper, based on numbers selected at random.
bingo event (also known as bingo session)—the designated time period during which a collection of bingo games, as listed on an approved bingo game schedule, is played. This definition only applies to non- pooling bingo halls.
bingo game—a bingo game includes all the combinations of marked numbers played for prizes on the bingo paper for that game. If multiple prizes are given out from playing the same bingo paper, that is considered one game. For example, three prizes may be awarded for playing one game: one each for filling a) the inside square, b) the outside square, and c) the full card. The game is over when all the prizes from playing that game´s bingo paper have been awarded.
bingo hall—a type of charitable gaming site where a charitable organization conducts and manages a lottery scheme under the authority of a licence issued by a municipality or by the Registrar.
bingo paper—a device of pre-printed numbers on disposable paper, cards or books or reusable hardboard or plastic cards.
bingo session—(also known as Bingo event)—the designated time period during which a collection of bingo games, as listed on an approved bingo game schedule, is played. This definition only applies to non- pooling bingo halls.
Bingo Sponsors´ Association—former term for Hall Charities Association (HCA).
black tie event—an event at which an eligible organization may be licensed to conduct Merchandise Bingo.
Blanket Raffle Licence—allows an eligible organization to obtain one lottery licence to conduct and manage more than one type of raffle event within a fixed time period and within a capped prize amount.
bona fide member—an active member of the eligible organization in good standing, who has activities within the organization beyond conducting lottery events. “Members of convenience” whose only activity is to assist at bingo or lottery events are not considered to be bona fide members.
bona fide member expenses (also known as out-of-pocket expenses)—actual, reasonable and necessary out-of-pocket expenses incurred by the licensee´s bona fide members, related to their attendance at and assistance with the conduct and management of a licensed lottery event.
books and records—documents outlining financial details of Lottery Events, including but not limited to, ledgers, sub-ledgers, cheque books, cheque stubs, deposit books, deposit slips, bank statements, cancelled cheques, receipts, invoices and control sheets.
Bossy Bingo (also known as Cow Patty Bingo)—a raffle event conducted using a large area divided into many squares. Participants draw a number representing a square. A cow is then placed in the designated area. The prizewinner is the person holding the number of the square upon which the cow´s bowel movement lands.
box—See break open ticket box.
break open ticket (also known as a Nevada ticket or pull tab)—a device made of cardboard that has one or more perforated cover window tabs concealing winning and losing numbers or symbols which are revealed by tearing off the cover tab. (See also break open ticket deal, break open ticket style and break open ticket type.)
break open ticket container—a clear box from which the break open ticket seller manually withdraws break open tickets.
break open ticket box—a separately sealed box of break open tickets within a deal, as shipped by the manufacturer or gaming equipment supplier.
break open ticket deal—a set of break open tickets with the same serial number.
break open ticket dispenser—an electrical or mechanical device used to dispense break open tickets.
break open ticket graphics—symbols (such as bells, boats or fruit) and any other approved illustrations appearing on a break open ticket.
break open ticket lottery—a lottery scheme where consideration is paid for a chance to win prizes by revealing a specified arrangement of numbers or symbols on a break open ticket.
break open ticket prize structure—the number and combination of winning tickets and prize amounts used to reach the total prize value in the break open ticket type, as approved by the Registrar.
break open ticket style—the combination of approved graphics (such as bells, boats or fruit) and prize structure used for the break open tickets. There may be many different styles within a break open ticket type, as approved graphics may be used with any type, and several different prize structures may be approved for each type.
break open ticket type—refers to the number of break open tickets per deal, the price of each ticket and the total prize value per deal.
Calendar Draw—a raffle in which a purchaser buys a calendar on which prizes are identified for a series of draws to take place on selected days. A purchaser wins a prize by matching the number on the calendar with the number drawn on the specific date.
Canada Deposit Insurance Corporation (CDIC)—a federal crown corporation created to protect the money deposited into CDIC member financial institutions in case of their failure.
casino—a place kept for the purpose of playing a lottery scheme conducted and managed by the Ontario Lottery and Gaming Corporation (OLG) under the authority of the Criminal Code (Canada).
Catch the Ace—a progressive (accumulating jackpot) multiple draw raffle lottery in which all ticket holders have a chance to win a prize consisting of 20% of ticket sales for an initial draw, and the winner of that initial draw has a chance to win a prize consisting of 30% of ticket sales from preceding draws by selecting a card from a regular deck of cards, with the raffle progressing from draw to draw until the winner of the initial draw selects the Ace of Spades.
CGAF—Charitable Gaming Application form (4220B).
charitable—in this manual the term “charitable” includes both “charitable and religious” organizations, as referred to in the Criminal Code (Canada).
Charitable Gaming Assistant—an individual registered as a gaming assistant under the Gaming Control Act, 1992. There are two categories of registration: Category 1 Gaming Assistants and Category 2 Gaming Assistants.
charitable gaming site—a gaming site where a charitable organization conducts and manages a lottery scheme under the authority of a licence issued by a municipality or by the Registrar.
charitable organization—a corporation, organization (including a religious organization), association or partnership that is created primarily for a charitable object or purpose in Ontario and is not operated for profit.
CPA Canada Handbook—(formerly CICA Handbook) a handbook issued by the Chartered Professional Accountants of Canada that sets out information pertaining to accounting practices and processes.
Licensees must ensure that their compliance reports and annual financial statements are prepared in accordance with the appropriate section of the CPA Canada Handbook, as required under the terms and conditions of their licences.
concessionaire—a person who operates a concession(s) leased from the board of a designated fair or exhibition.
Commission—the Alcohol and Gaming Commission of Ontario.
Crown lands—public lands owned by His Majesty the King in right of Canada or His Majesty the King in right of Ontario. Only the Registrar may issue licences for lottery events to be conducted on Crown lands in Ontario.
deal—a set of break open tickets with the same serial number.
Decision Bingo—bingo variation in which players use chips to purchase bingo paper; during each game, players have the option of ending play or continuing to play by using chips to up the ante.
designated fair or exhibition—a fair or exhibition that has been designated by the Registrar as a fair or exhibition where a lottery scheme may be conducted and managed.
designated lottery trust account—an account designated as a trust account by the branch of a recognized financial institution within the Province of Ontario.
designated member in charge—a bona fide member of an eligible organization who is in charge of and responsible for the conduct of a licensed lottery event. The number of designated members in charge required is determined by the type of lottery event.
directive—a formal direction given by the Registrar to one of more licensees or registered suppliers directing the licensee or supplier to act or to cease acting in the manner specified in the directive.
dispenser—an electrical or mechanical device used to dispense break open tickets.
electronic funds transfer (EFT)—means a system of technology that allows Hall Charities Associations to disburse pooled lottery proceeds securely by electronic means from their lottery trust accounts to each of their member organizations´ lottery trust accounts rather than writing cheques.
Electronic raffle—raffle in which computers may be used for the sale of tickets, the selection of winners and the distribution of prizes.
eligible organization—an organization that meets the eligibility criteria set out in this manual for lottery licensing in Ontario.
Elimination Draw—a variation on the stub draw in which all tickets are pulled from the container one at a time, until only one ticket is left. The last remaining ticket is the grand prize winner.
exit strategy—manner in which a bingo game is guaranteed to conclude.
Fair or Exhibition Gaming Event—an event licensed by the Registrar consisting of no more than 20 blackjack and/or wheel of fortune games.
fixed prize board—a bingo prize board where the value of the prizes is pre-set and does not fluctuate based on revenue from the event. The prizes must be noted on the game schedule.
float—a cash fund of a fixed amount required at the start of the licensed bingo event for the purpose of making change to purchasers of bingo paper, which may be used to pay out prizes if necessary.
game schedule—a complete listing of all bingo games to be played during each bingo event, including:
The game schedule must also include any bingo-themed lottery schemes conducted and managed by the Ontario Lottery and Gaming Corporation (OLG) within the bingo hall, where a licensee provides services.
Gaming Assistant—an individual registered as a Gaming Assistant under the Gaming Control Act, 1992.
Gaming Control Act, 1992—an Act regulating the commercial sector of the charitable gaming industry. It requires the registration of certain persons that supply gaming services or goods to licensed charitable organizations.
gaming event—an occasion on which a game of chance is played pursuant to a licence.
gaming product—gaming products include bingo paper, break open tickets, and Ontario Lottery and Gaming Corporation (OLG) products such as Lotto 649 tickets.
Gaming-Related Supplier—a person who manufactures, provides, installs, tests, maintains or repairs gaming equipment or who provides consulting or similar services directly related to the playing of a lottery scheme or the operation of a gaming site.
gross receipts—the total revenue received from licensed lottery events, before any approved expenses have been deducted.
gaming site—premises or an electronic channel maintained for the purpose of playing or operating a lottery scheme.
“Golf Ball Drop” Raffle Lottery—a lottery in which participants buy a numbered ticket that matches a numbered golf ball. The numbered golf balls are lifted into the air and dropped, with the ball falling onto a designated spot determining the winner.
Hall Charities Association (HCA)—an association formed by all the licensees conducting bingo and other lotteries within a bingo hall.
Hall Rental—payment made by a licensee to Operator of a bingo hall from event proceeds, calculated according to the terms and conditions of the licence. For the hall rental received, the Operator provides goods and services to the licensee for the conduct of the event, including but not limited to, bingo paper, security, storage, gaming equipment, office equipment, materials, space, utilities and employee services.
House Rules—rules established by the licensee to govern the conduct of bingo and bingo players within a hall. The house rules are in addition to and must not contravene the terms and conditions or the Registrar´s policies.;
“in conjunction with”—where a lottery event is licensed to be conducted in combination or association with another licensed lottery event. Only the Registrar may issue licences for lottery events to be conducted in conjunction with other licenced lottery events. There are limitations on events that may be licensed in this manner.
Jackpot Game—is a regular bingo game; the total prize payout, which may also include subsidiary prizes (i.e. line prizes) cannot exceed 50% of the licensed prize board.
licence—a licence issued to an eligible charitable organization under the Criminal Code (Canada) by or under the authority of the Lieutenant Governor in Council, to conduct or manage a lottery scheme approved by the Registrar.
licensee—a charitable organization to which a licence is issued.
licensing authority—the authority specified by the Lieutenant Governor in Council as a licensing authority for purposes of the Criminal Code (Canada).
LLPM—short form for Lottery Licensing Policy Manual.
Loonie Pot Bingo—a special, variable prize game within a Regular Bingo game schedule. Players pay a dollar to have their bingo paper stamped for the designated Loonie Pot Bingo game. Before the game begins, a number is selected, announced and put back into the machine. If a player with stamped bingo paper calls bingo and their winning number arrangement contains the pre-selected number, they also win the Loonie Pot Bingo prize.
Loonie Progressive Game—a separately licensed progressive-style bingo game, held in conjunction with a Regular Bingo event, in which the prize amount is allowed to increase at each successive event to a set maximum or until the prize is won.
lottery—a scheme for which a licence is available pursuant to s. 207(1)(b) of the Criminal Code (Canada).
lottery scheme—any gaming scheme that has the following three components: a prize; payment of a fee; and a chance to win.
lottery trust account—see designated lottery trust account.
“Meat Spin” (also known as a “Turkey Roll”)—a type of raffle event permitted under a Blanket Raffle Licence. In a Meat Spin the winner is determined by the random spin of a wheel rather than by a random selection from ticket stubs in a container.
Media Bingo—a bingo event that is conducted on or through media such as radio or newspaper.
Merchandise Bingo—a bingo event where the prizes to be awarded consist of merchandise.
Monster Bingo—See Special (Monster) Bingo.
“Name the Raffle” Lottery—small-scale type of lottery event conducted under a Blanket Raffle Licence allowing licensees to award edible products such as porchetta, meats and desserts as prizes.
net proceeds—the amount remaining after a licensee has deducted all approved expenses related to the management and conduct of a licensed lottery event from the gross receipts for the event. The licensee must use the net proceeds for the charitable objects and purposes approved by the licensing authority.
Nevada Tickets—another name for Break Open Tickets.
Ontario Lottery and Gaming Corporation (OLG)—a Crown Agency responsible for conducting and managing games of chance, such as Lotto 6/49.
Operator—operator of a bingo hall or other gaming site registered under the Gaming Control Act, 1992.
Order-in-Council—refers to Order-in-Council 208/2024 and any subsequent amendments. The Order-in- Council sets out the authority of the Registrar and municipal councils to license and regulate certain lottery events.
out-of-pocket expenses—See bona fide member expenses.
paper—See bingo paper.
PBOT—short form for provincial break open ticket.
PBV—short form for hand-held personal bingo verifier.
Penny Auction Raffle—a raffle held under a Bazaar Licence in which, for a set price, participants purchase a certain number of tickets that are usually detachable from the stub portion (retained by the purchaser). Participants may enter as many tickets as they possess on any prize they are interested in by depositing the tickets into a container assigned to that prize. The prize is awarded to the person whose ticket is drawn, at random, from the container.
person—an individual, corporation, organization, association or partnership.
personal bingo verifier (PBV)—a hand-held device used by individual players to keep track of and verify numbers called by bingo callers in the normal way. A hand-held personal bingo verifier may only be used long with bingo paper and dabbers.
pooled funds—lottery proceeds from regular bingo events that are pooled by licensed charitable organizations at a registered bingo hall in order to equally share the proceeds. Charitable organizations within a hall may pool their lottery proceeds and divide them on a pro rata basis to compensate for the fact that some time slots are more profitable than others. The pooling of funds must be administered through a Hall Charities Association in accordance with the terms and conditions.
pre-calls—in bingo games where a large number of calls are required to determine a winner, some numbers are called at the beginning of the event to allow the game to be played more quickly. “Pre- called” games are usually games that will offer larger prizes and are often referred to as “Special” games. Sealed bingo cards must be used for pre-called games.
prize board—the total value of all the prizes to be awarded at a bingo event. The prize board may be a combination of variable and fixed prizes.
prize structure—see break open ticket prize structure.
Progressive Bingo Game—a separately licensed bingo game, held in conjunction with a Regular Bingo event, where the prize amount increases from event to event.
provincial break open ticket licence—a licence issued by the Registrar to an organization with a demonstrated provincial mandate, authorizing the sale of break open tickets in each municipality across the province.
pull tabs—another name for break open tickets.
raffle—a lottery scheme where tickets are sold for a chance to win a prize at a draw.
Registrar—the Registrar made under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996.
Regular Bingo—a lottery event where the total prize value does not exceed the prescribed limit set out in the Order-in-Council.
Regulations—the regulations made under the Gaming Control Act, 1992.
“Rubber Duck” Race—a lottery in which participants buy numbered tickets that match numbered floating objects such as rubber ducks. All the “ducks” are placed into a river and the holder of the ticket with the number matching the number on the “duck” that crosses the finish line first wins.
runner—a bingo hall staff person on the floor selling bingo paper, identifying winners and paying out prizes.
Seal Card Game— a break open ticket game featuring tickets that grant certain players a chance at a prize or prizes to be determined by the removal of a window from a seal card to reveal specified winning numbers or symbols.
Seller (also known as “lottery retailer”)—a person registered under the Gaming Control Act, 1992 to retail OLG lottery products and/or to sell break open tickets on behalf of a licensed charitable or religious organization. A seller can be registered to sell break open tickets at one or more locations.
senior groups—a senior group is one in which a majority of its members is sixty (60) years of age or older.
share-the-wealth—See variable prize board.
Shutter Board Bingo—See Table Board Bingo.
Single Break Open Ticket Licence—a licence issued by the Registrar to a Hall Charities Association, allowing it to sell a variety of break open ticket types under the same licence.
Special Occasion Gaming Event—an event where the gaming activities are ancillary or complementary to a social occasion such as a dinner or dance sponsored by the licensee of the Special Occasion Gaming Licence, or as approved by the Registrar. No more than a total of 20 blackjack tables and/or wheels of fortune may be operated at a Special Occasion Gaming Licence.
Special Occasion Gaming Licence—a licence permitting the conduct of a Special Occasion Gaming Event.
Special (Monster) Bingo Licence—a licence issued by the Registrar permitting the conduct of bingo where the total value of the prizes to be awarded for any one event is greater than the limit for Regular Bingo.
Standards—standards prescribed by the Registrar for gaming equipment or for gaming services with which Gaming Suppliers shall comply. “Standards” also includes standards prescribed by the Registrar with which licensees shall comply.
Stub Draw—a raffle lottery with two-part tickets; the purchaser keeps one part of the ticket and the other part, known as the “stub,” which contains the purchaser’s information is placed in a container. A winner is determined by a random selection from the stub container.
style—See break open ticket style.
sub-deal—a portion of a deal of Seal Card Game tickets or bingo event tickets as approved by the Registrar. Each sub-deal in a deal shall have the same serial number but be distinguished by a letter of the alphabet or additional numbers at the beginning or end of the serial number or form number.
Super Jackpot Bingo—a bingo game licensed by the Registrar in conjunction with a Regular Bingo event. The Super Jackpot prize is awarded based on a set, escalating number of bingo numbers called at successive Super Jackpot games.
supplier—See Gaming-Related Supplier.
table board bingo device—a mechanical device containing permanent bingo numbers with built-in shutters. A player marks a number by covering it with a shutter.
Table Board Bingo (also known as Shutter Board Bingo)—bingo games that are conducted and managed by a Regular Bingo licensee or a Hall Charities Association, using a table board bingo device.
terms and conditions—specific sets of requirements attached to each licence, setting out the conduct and management requirements of the licensee. The Registrar issues terms and conditions for all licences.
“Turkey Roll”—another name for a “Meat Spin” lottery.
type—see break open ticket type.
unorganized territory—a geographical area that is not administered by local municipal government or First Nations and is not Crown land. Only the Registrar may issue lottery licences in unorganized territories.
U Pick game (also known as “pick a bingo” or “do-it-yourself bingo”)—a style of play that allows bingo players to choose the numbers on their game cards.
use of proceeds—the approved purpose or object for which an eligible organization uses the proceeds of a licensed lottery event. Approved uses of proceeds must fall within one of the four charitable classifications set out in this manual.
variable prize board (also known as “share the wealth”)—a bingo prize board where the value of the prizes is determined as a percentage of the gross receipts for the game. A maximum prize payout must be established and noted on the game schedule.
wheel of fortune—a gaming device in the form of a revolving wheel. Pegs divide the perimeter of the wheel into sections, each containing a number or symbol. Patrons place wagers corresponding to the numbers or symbols. The wheel is spun, and the number or symbol where the clapper stops determines the winner.
Win—gross proceeds from a bingo event less the value of prizes but not including any amount prescribed by the Registrar for a provincial fee.