3.4.0. Lottery Events In Regions Without Local Municipal Councils

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.

3.4.1. SUSPENDING OR CANCELLING LOTTERY LICENCES

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 licencefor further information.

3.4.2. APPLICABLE TAXES AND REBATES

The following policies apply to the HST:

  1. The HST does not apply to the licence fee for any gaming event.
  2. In a registered bingo hall, the HST is payable on hall rental. The HST is not collected from patrons purchasing paper.
  3. The terms and conditions of the lottery licences outline how tax should be handled. The licensee is responsible for ensuring that the appropriate tax is paid for all goods and services it uses in the conduct and management of its event.
  4. For all lottery events, the tax paid by the licensee for applicable goods and services must be itemized and disclosed on the financial report form.
  5. Where a licensee receives a tax rebate, the rebate must be deposited into the lottery trust account and used for the charitable purposes of the licensee.

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).

3.4.3. REGISTRATION

3.4.3 (A) Classes of registration

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.

3.4.3 (B) Registration renewals

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 registrationfor further information.

3.4.3 (C) Exemption from registration

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.