Chapter 5: Raffles

5.1.0. Introduction

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:

  • Stub Draw
  • Elimination Draw
  • Calendar Draw
  • “Golf Ball Drop” Raffle Lottery
  • “Rubber Duck” Race
  • 50/50 Draw (paper-based)
  • Blanket Raffle Licence
  • Meat Spin/Turkey Roll
  • “Name the Raffle” Lottery
  • Bossy Bingo/Cow Patty Bingo
  • Auction-Style Raffles
  • Catch the Ace Progressive Raffle Lottery
  • Electronic raffles.

5.1.1. OVERVIEW: AUTHORITY TO LICENSE

5.1.1(A) Provincial licensing authority

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.

5.1.1(B) Municipal licensing authority

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.

5.1.2.GENERAL RAFFLE LICENSING POLICIES

The following general policies apply to all types of raffle lottery events:

  1. Licensing authorities may issue concurrent raffle licences based on their evaluation of the licensee’s capacity to successfully conduct and manage multiple events at one time. Licensees may conduct and manage a maximum of two online raffles at the same time.
  2. With the exception of a 50/50 draw, the licensee must award fixed prizes that are set out in the lottery licence application and approved by the licence. The maximum prize value for a 50/50 draw must be determined by the maximum number of tickets issued as set out in the application.
  3. Raffle licensees must obtain goods and services only from registered suppliers. Suppliers, whether contracted directly by the licensee or not, must possess an appropriate current registration certificate, issued under the Gaming Control Act, 1992. Each applicant must include a description of all the goods and services to be obtained from each supplier, in order for the licensing authority to determine whether or not the supplier must be registered under the Gaming Control Act, 1992.
  4. Subject to the policies outlined in 5.16.1(c), the licensee may offer Ontario Lottery and Gaming Corporation (OLG) tickets as early-bird or other raffle prizes. The prize value of OLG tickets must be based on the face value (purchase price) of the tickets. The maximum value of these tickets must not exceed five (5) per cent of the prize board for the licensed lottery event.
  1. The licensee may offer its own licensed raffle tickets as early-bird prizes. The prize value of the raffle tickets must be based on the face value (purchase price) of the tickets. The number of these tickets must not exceed a maximum of five (5) per cent of the total number of tickets issued for the licensed lottery event. The licensee must include the cost of these tickets in the overall prize board for the raffle event.
  2. Raffle tickets must not be sold to anyone under the age of 18, or the age of 19 if alcohol is included in the prize.
  3. Raffle tickets must not be offered by the licensee as contest or promotional prizes through any public medium.
  4. Prizes:
    1. The retail market value of the prizes to be awarded must not be less than 20 per cent of the total value of all tickets issued.
    2. The licensee must pay any duty, sales tax or other additional costs related to the prizes. These costs must be included in the stated value of the prizes.
    3. Only new (and unused) merchandise purchased from a reputable vendor/supplier may be offered as prizes (with some exceptions for antiques—see 5.16.1[d]).
    4. The prizes must be awarded free and clear of any mortgage, lien or any other encumbrances. The licens- ee must not offer leased prizes. All prizewinners must be awarded unconditional ownership of the prize.
    5. Livestock must not be awarded as prizes.
    6. For any prizes worth more than $500, the licensee must obtain legible copies of a firm price quotation and a letter of intent, invoice or agreement to purchase for each prize.
    7. If the applicant is proposing to offer fixed prizes totalling $10,000 or more, including taxes, the applicant must present an irrevocable standby letter of credit to the licensing authority. The licensing authority may also require a financial guarantee for a prize of a lesser value. (See 3.6.7. Financial guaran- teesand 3.6.8. Letters of credit.)
    8. Licensees may use electronic commerce channels, such as e-transfers and online gift cards, to distrib- ute prizes. Note: Gift cards with depreciating value or user fees are not allowed. Applicants must provide information about prize distribution methods as part of their licence application.
  5. Raffle lottery tickets sold under a licence issued in Ontario must not be advertised, offered for sale, sold or ordered from outside of Ontario. However, while they are in Ontario, residents of other countries or provinces may purchase raffle tickets sold under a licence issued in Ontario.
  6. The licensing authority may require the applicant to include a complete ticket sales plan, including an explanation of how credit card and debit card sales, as well as dishonoured cheques will be handled.
  7. The licensee must ensure that all advertising complies with the Raffle Licence Terms and Conditions, any additional terms and conditions for the lottery licence and with all relevant federal, provincial and municipal laws.
  8. The licence application must state the number of tickets to be issued.
  1. The licensee’s name must appear on both the main ticket and the ticket stub, and on all forms of advertising for the raffle, including brochures, handouts and electronic advertising.
  2. In the case of paper-based 50/50 draws, the licensee may use duplicate tickets or “roll” tickets without the licensee’s name and licence number to facilitate the draw. (See 5.2.1(F) 50/50 draw (paper-based)for further information.)
  3. The winners must be publicized in the manner set out and approved in the application.
  4. If a licensee intends to issue tickets in a language other than English, the licensee must provide a full translation of the information in English or French to appear on the tickets, as well as a copy of the text in the language to be used on the tickets.
  5. Licensing authorities may not issue raffle lottery licences for events to be conducted on any conveyance that moves or is capable of moving, including boats, trains and airplanes.

5.1.3. CONFLICT OF INTEREST GUIDELINES

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:

  • The designated members-in-charge, prize donors, and other persons or companies involved in the conduct of the raffle (including insurance companies, legal and accounting firms, call centres, and all registered suppliers) must not purchase tickets.
  • Prizes must not be purchased from a business controlled by any of the designated members-in- charge of the licensed lottery event.
  • A neutral third party (that is, a person who has not purchased a ticket) should be asked to draw the winning tickets.

5.2.1. Permitted Non-Electronic Raffle Lottery Events

5.2.1 (A) Stub draw

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.

5.2.1 (B) Elimination draw

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:

  • Only sold ticket stubs may be put into the container.
  • If all tickets are not sold, the licensee must adjust the interval of winning tickets to ensure that all prizes are awarded as originally advertised.
  • When all tickets are not sold, the licensee must announce/advertise the altered format prior to conducting the draw.

5.2.1 (C) Calendar draw

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.

5.2.1 (D) “Golf ball drop” raffle lottery

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:

  • A safety/security plan for the event, approved in writing by the local law enforcement agency or agencies. In the event the “drop” is made from an aircraft or other mechanical lifting device the applicant/licensee must ensure that the operator of the aircraft or other device conforms to all other applicable laws. Please note that any additional equipment used for the dropping of the golf balls must be certified under the airworthiness regulations.
  • A copy of written approval for the event, from any other authority with jurisdiction over the lands over which the drop is to take place.
  • Liability insurance from the charity and the equipment provider (that is, mechanical equipment/ aircraft provider) against damage, injury and loss of life. Liability insurance must name His Majesty the King in Right of Ontario, the Registrar, and the Alcohol and Gaming Commission of Ontario and its employees and agents as additional insureds. The policy must be submitted for the Registrar’s approval. In the event the licence is issued by a municipal authority, the municipality and municipal officials must also be named insureds in the policy.
  • A copy of the municipal approval permitting the drop to take place in the municipality with the confirmation that this is a “golf ball drop” lottery event.
  • A written agreement from the owner of the property on which the drop is to take place, indemnifying His Majesty the King in Right of Ontario, the Registrar, and the Alcohol and Gaming Commission of Ontario and its employees and agents of any liability. In the event the licence is issued by the municipality, the municipality must be indemnified from any liability. The agreement must ensure ticket-holders are given access to witness the event.
  • A complete site map of the area in which the drop is to take place, inclusive of the safe area for the viewing public. If an aircraft is used for the “drop” the plan must conform with all applicable legal requirements.
  • A process for determining the winner(s) of the event after the drop has taken place.
  • A procedure for the retrieval of the balls after the event and matching of the balls to ensure that all the balls that were dropped have been accounted for.
  • A procedure in the event that the balls have not landed on the designated area.
  • A procedure in the event that bad weather prevents the drop from taking place as planned.

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.

5.2.1(E) “Rubber duck” race

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:

  • a security plan for the race, approved in writing by local law enforcement agencies; and
  • written approval for the event from any authority with jurisdiction over the lands and waters to be used for the race (for example, provincial or municipal authority).

The supplier of the “ducks” does not have to be registered under the Gaming Control Act, 1992 as a Gaming-Related Supplier.

5.2.1 (F) 50/50 draw (paper-based)

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

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.

5.2.1 (G) Blanket raffle licence (issued by municipality only)

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:

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

See 5.2.1(H) Meat spins/turkey rollsand 5.2.1(I) “Name the raffle” lotteryfor 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:

  • types of raffle lottery events to be conducted during the period;
  • the number of raffle events to be conducted;
  • the total number of tickets to be printed for each individual raffle event and the total value of all tickets printed for each of the events;
  • the cost per ticket for each event and the price per set of cards for “name the raffle” lotteries;
  • the cost per ticket for each event;
  • the location where the events will take place;
  • the scheduled dates for each type of raffle event to be held;
  • a detailed explanation of the rules for each type of raffle event;
  • a description of all prizes to be awarded and the total retail value of all prizes to be awarded for each raffle event;
  • total value of all prizes to be awarded for the period; and
  • the licence fee.

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):

Month

 

 

 

 

 

 

Draw Dates

 

 

 

 

 

 

Total Tickets

 

 

 

 

 

 

Cost per ticket / Set of Cards

 

 

 

 

 

 

Prize Board

 

 

 

 

 

 

Licence Fee

 

 

 

 

 

 

For Official Use only

Total Prize Board:

 

Licence Fee:

 

Period of Licence Fee:

 

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.

5.2.1 (H) Meat spins/turkey rolls

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:

  • The licensee must provide a plan to the licensing authority to show how it will differentiate between each draw since the numbers will be the same for each draw. For example, if there are five draws, the ticket could specify the time of the spin/draw and spin/draw number and use a tracking form for each draw as in the example below.
  • The number of tickets to be sold must be equivalent to the number of spaces on the wheel.
  • The wheel must complete a minimum of three full revolutions to count as a spin.
  • Once the first ticket is sold, the licensee must complete the raffle and award the prize as approved in the licence whether or not all tickets have been sold.

Meat Spin/Turkey Roll Tracking Sheet Example

5example1.png5.2.1 (I) “Name the raffle” lottery

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 use playing cards purchased in sets of three (3) instead of purchasing tickets.
  • The winner is determined by matching the set of cards with the cards turned by the “dealer”.
  • The winner is the first player whose three (3) cards all match cards turned up by the dealer and who calls out “bingo.”

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.”

5.2.1 (l) (i) Terms and conditions and rules of play for “name the raffle“ lotteries

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.

5.2.1 (I) (ii) “Name the Raffle” Lottery Explanation and Rules of Play

NAME THE RAFFLELOTTERY 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.

5.2.1 (I) (iii) “Name the Raffle“ Rules of Play

  1. Players must be 18 years of age or older.
  2. The minimum price for a set of cards is $1.00.
  3. The maximum price for a set of cards is $5.00.
  4. The maximum value of prizes awarded per game cannot exceed $10.00. In the event there are multiple winners in a game, the payoff may exceed $10.00. However, there will be a reduction in the number of games remaining in order to remain within the prize payout as authorized on the licence except where there are multiple winners in the last game in a draw.
  5. All sets of cards must be purchased prior to the first card being called by the Dealer.
  6. The games must be played with a minimum of 4 decks of cards (inclusive of the Dealer’s deck). The Dealer’s deck must have a different back design to the cards sold to the players.
  7. The Dealer must announce the number of sets of cards sold prior to calling the first card. The Dealer must ensure that unsold sets of cards are put in a secure place prior to the commencement of the game.
  8. Prior to the commencement of the game the Dealer must shuffle the Dealer’s deck of cards so that they are randomly intermixed and offer the stack of cards to any one of the players to cut.
  9. The Dealer’s deck must be placed in a Dealers “shoe” or container that will permit one card to be turned over at a time from the top.
  10. On completion of a draw, the Dealer will ensure that all sets of cards are retrieved from the players. Upon completion of a review to ensure that all cards have been returned, the sets of cards may be re-sold for the next draw. In the alternative, the licensee may use a different set of cards for the next draw. These cards must have a different back design to those that have already been sold for previous events.
  11. It is the responsibility of the licensee to post the time of each draw and the games that are to be held in each of the draws. Details respecting the draws, times of draws, games and rules

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.

  1. The licensee must submit reports on the event using Section 1(d) of the Blanket Raffle Lottery Report.

5.2.1(J) Bossy bingo/cow patty bingo

“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.

5.2.1 (K) Auction-style raffles

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.

5.2.1 (k) (i) Auction-style raffle rules of play

  1. Licensees must require that tickets be used for the draw.
  2. Each ticket must have a set price (for example, 50 cents per ticket). The only cost of participating in an auction-style raffle is the cost of entering the draw through the use of tickets.
  3. The licensee may use stub or roll tickets. Where events will include multiple draws, the licensee may choose to have a set number of tickets per draw or may choose to allow participants to allocate tickets over a series of draws during the course of the event. Prior to each draw, the type of ticket to be used in the round of play (for example, the colour of the tickets, or the numerical range of the tickets) must be announced.
  4. The licensee must announce, prior to the selling of tickets for a particular prize, the value of the prize and how many tickets are required per “bid” to participate in the draw. Participants may purchase as many tickets as they wish. Where a “bid” requires more than one ticket, participants must provide a number of tickets that corresponds to the number of “bids” they seek to enter. Fractional “bids” are not permitted. For example, if a single “bid” requires two tickets, a participant must provide two tickets for a single “bid” and four tickets for two “bids.” In this example, entering three tickets is not permitted.
  1. For entertainment purposes only, each participant in an auction-style raffle may be given a “paddle” or other device. Licensees must not sell or otherwise charge any fee whatsoever for a “paddle” or similar device. Paddles are used by the participants to signal to the “Auctioneer,” that is, the person that facilitates each round of play by announcing opportunities to “bid,” that the participant wishes to enter the draw.
  2. Admission to an event does not require participation in the auction-style raffle.
  3. The Winner is determined by drawing a ticket at random from the container and matching the number of the drawn ticket to a corresponding ticket held by a participant.
  4. Several prize items may be offered at the auction-style raffle, with one draw per item.
  5. Each prize may consist of a single item or several items bundled as a single prize (for example, a gift basket).
  6. The prize items must be in the possession of the licensee before the draws take place.
  7. Prize items may be donated to or purchased by the licensee. However, the prizes must comply with the restriction on prizes detailed in 5.1.2 (8).
  8. An approximate market value for each prize must be determined before the event. The maximum total prize value may not exceed $10,000.
  9. All funds generated by the auction-style raffle go the licensee conducting and managing the event and must be used for the approved purposes detailed in the licence application.

5.2.1 (L) Catch the Ace progressive raffle lottery (non-electronic)

A “Catch the Ace” progressive (accumulating jackpot) raffle lottery is a multiple-draw game in which:

  • all ticket holders have a chance to win a prize consisting of 20% of ticket sales for an initial draw;
  • the winner of the draw has a chance to win a prize consisting of 30% of ticket sales from each draw held to date, which progresses from draw to draw until the winner of the initial draw selects the Ace of Spades from a regular deck of cards.

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:

  • 20% of event ticket sales—awarded to the bearer of the winning ticket at each draw
  • 30% of event ticket sales—allocated to the progressive jackpot
  • 50% of event ticket sales—retained by licensee, from which all allowable expenses will be paid.

5.2.1 (L) (i) Catch the Ace progressive raffle lottery policies

  1. The playing cards from a standard deck of 52 cards (the 2 through to the ace of diamonds, hearts, clubs and spades, totalling 52 cards) are each placed in identical, opaque envelopes and sealed. Those sealed envelopes are shuffled, randomly numbered from 1 to 52 and placed on public display, in a secure fashion, at each draw.
  2. As an alternative to using a deck of playing cards, the licensee may also use approved gaming supplies from a registered supplier.
  3. Tickets:
  • Roll tickets or stub tickets may be used.
  • Tickets (serialization) must be unique from draw to draw.
  • There must be no duplicate ticket numbers for all draws under a licence. There must be a documented process in place showing how the licensee will ensure there are no duplicate tickets for all draws.
  • Tickets are only eligible for the draw for which they are purchased. At the conclusion of the draw, all non-winning tickets must be removed from the container. Non-winning tickets may be destroyed after 30 calendar days.
  • Winning tickets must be kept in accordance with the requirements outlined in the Raffle Terms and Conditions.
  • The licensee will keep a log of all draws, recording the sequence numbers and other characteristics for all tickets in play.
  1. It is not mandatory for the purchaser of the ticket selected at a draw to be in attendance. However:
    1. If the licensee is using roll tickets, the licensee is required to include in the Rules of Play the amount of time within which the winner must claim the prize before another ticket is drawn.
    2. If stub tickets are used, the licensee shall require purchasers to provide their name and contact informa- tion and to indicate in a designated area on the stub the envelope number selected by the purchaser in the event that his or her ticket is drawn. The licensee must also set out a procedure to be followed in the event that that envelope number has already been chosen and is no longer available.
  2. Once sales for a draw have closed, a ticket must be selected as the winning ticket for that draw. The number on the ticket will be announced at the draw and the prize shall be awarded accordingly.
  1. The licensee must use a container that is large enough to hold all sold tickets or stubs.
  2. All prizes must be paid by cheque in Canadian funds.
  3. The Rules of Play must be posted at the location of the draw and be readily available to the public.
  4. The ConnexOntario name and phone number (1-866-531-2600) must appear on the Rules of Play, in all print advertising and on all stub tickets.
  5. Once the Ace of Spades card is selected, the event and licence are concluded. If the licensee wishes to conduct another Catch the Ace event, a new licence must be obtained.
  6. Draw Process:
    1. Immediately prior to the draw, the ticket sales for the draw, the draw prize and the current progressive jackpot amount must be announced.
    2. In the event that the Ace of Spades is not drawn, the licensee will immediately destroy the card selected by the winner of the draw.
    3. The licensee must maintain a log to record the destruction of all cards. The log must include the draw date, complete card details and verification by the bona fide member who destroyed the card, and by another bona fide member in charge of the lottery.
  7. All draws will be video recorded by the licensee. The following requirements must be met:
    1. Participants will be advised in the Rules of Play that all raffle draws will be video recorded in order to en- sure raffle integrity.
    2. Video recordings must be secured by the licensee and made available to the licensing authority upon re- quest. All video recordings must be maintained for at least 30 calendar days after the draw date, after which they may be deleted or destroyed.
    3. The video recording shall in be high definition (minimum resolution — 720p) in a well-lit environment, have an unobstructed view of all raffle activities and show:
    • selection of the winning draw ticket;
    • selection of the envelope by the bearer of the winning draw ticket;
    • reveal of playing card within selected envelope; and
    • destruction of the playing card.

5.2.1 (L) (ii) Catch the Ace progressive raffle lottery application requirements

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.

5.2.1 (L) (iii) Catch the Ace progressive raffle lottery terms and conditions

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:

  • Section 4.3 (a) (vii): total number of tickets printed does not have to appear on the tickets.
  • Section 7.2 (a) (v): the price of the ticket must be included in all print advertising, but the total number of tickets printed does not.
  • Section 8.5 (a) & (b): Ticket sellers are not permitted to be paid a sales commission.
  • Section 9.2: Licensees shall keep winning tickets throughout the period of the licence and for reporting requirements. All unsold tickets or counterfoils may be destroyed 30 calendar days after the date of the draw. Winning tickets must be kept in accordance with the requirements outlined in the Terms and Conditions.

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:

  • Catch the Ace draws are permitted under the licence issued by the Registrar.
  • Hall Operators are required to pay for all gaming related supplies including but not limited to raffle tickets, playing cards, card envelopes, raffle ticket draw container.
  • Catch the Ace Rules of Play must be submitted to the Registrar for review and must contain an exit strategy.
  • Only stub tickets are permitted. Ticket requirements are outlined in section 4.4 of the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions.
  • Section 4.5 (g): total number of tickets printed does not have to be included on the ticket.
  • Catch the Ace tickets can only be sold inside the bingo hall.
  • No contributions from the Catch the Ace sales are to be included in the advertising and marketing plan.
  • Catch the Ace event details must be included with the Charitable Gaming Monthly Summary report.

5.2.1 (L) (iv)Catch the Ace progressive raffle lottery reporting requirements

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.

5.2.1 (L) (v) Changing from paper-based sales to sales using an electronic device

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:

  • Changing from a paper-based Catch the Ace raffle to online sales during the course of a Catch the Ace raffle is not permitted.
  • Combining paper-based Catch the Ace raffle ticket sales with electronic Catch the Ace raffle ticket sales in the same draw is not permitted.
  • The AGCO requires at least two weeks’ written notice to consider amendments, which will not be automatically approved and may not be permitted.
  • Charities with licences issued by municipalities or First Nations licensing authorities are not eligible to request an amendment to change from paper-based ticket sales to electronic ticket sales. Only licences issued by the AGCO are eligible for this type of amendment.

For information on electronic Catch the Ace raffles, please see 5.3.1, “Electronic raffles”.

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:

  • electronic 50/50 raffles;
  • electronic Catch the Ace progressive raffle lotteries; and
  • fixed-prize electronic raffles.

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:

5.3.1 (A) Policies exclusive to electronic raffles

5.3.1 (a) (i) Paid sellers

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.

5.3.1 (a) (ii) Enhanced requirements concerning problem gambling

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/).

5.3.1 (a) (iii) Sponsorships and seeding jackpots

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.

5.3.1 (a) (iv) Notification Matrix

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.

5.3.1 (a) (v) Supplier information

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.

5.3.1 (a) (vi) Financial guarantees

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.

5.3.1 (a) (vii) Combining online and in-person ticket sales

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.

5.3.1 (a) (viii) Limit on concurrent online raffles

Licensees may conduct and manage a maximum of two online raffles at the same time. (The term online refers to sales that occur when a customer uses the internet to purchase a ticket.)

5.3.1 (a) (ix) Electronic raffle solutions

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.

5.3.1 (a) (x) In-person electronic raffles

Licensees may sell electronic raffle tickets at multiple locations where they lease, own or have permission to sell tickets. The following restrictions apply:

  • Licensees must sell tickets only at venues located in communities where they deliver services.
  • Licensees must use separate points of sale that are operated in-person by the charity’s representative.
  • Licensees may not use a retailer’s staff to sell raffle tickets, and/or provide unsupervised points of sale such as self-serve kiosks.

5.3.1 (a) (xi) Ticket sales over multiple days

Licensees may sell tickets for an electronic raffle over multiple days.

5.3.1 (a) (xii) Multiple draws over extended periods

Charities may obtain a licence that permits multiple draws over an extended period, such as during a sports season.

5.4.1. Prohibited Raffle Events

5.4.1 (A) Sports pools

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.

5.4.1 (B) Raffles by “donation”

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”.

5.4.1 (C) “Scratch and win”

“Scratch and win” raffle lotteries must not be licensed.

See also 5.1.2. General raffle licensing policies.

5.4.1 (D) Prize values determined on factors beyond the applicant’s control

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:

  • the exact nature and value of each prize is detailed on the application and in any promotional material; and
  • all prizes are awarded as approved on the application for licence.

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.

5.5.1. Municipal Licensing Policies

In addition to the general raffle licensing policies set out in Section 5.1.2, the following policies apply to licences issued by municipalities:

  1. If a licensee wishes to sell tickets from an established point of sale or door-to-door in more than one municipality, it must obtain permission from each municipality in which it proposes to sell tickets.
  2. A charitable organization applying to conduct and manage a raffle lottery event must submit its application to the municipality in which it wishes to conduct and manage the event. The application must include a letter of support from the home base municipality. The municipality may or may not issue the licence pursuant to Section 2.(a) of the Order-in-Council 1413/08.
  3. A municipality may issue a raffle licence permitting an eligible organization to use a special occasion gaming event (which must be licensed by the Registrar) as a venue for a raffle draw, if the raffle licence clearly states that ticket sales must end prior to the conduct and management of the social gaming event.

5.6.1. Municipal Licensing Procedures

Organizations applying for a municipal raffle lottery licence must comply with the following procedures:

  1. The applicant must submit a fully completed application, on a form issued by the Registrar. The applicant must include all supporting materials with the application.
  2. A fully completed application must include:
  • the location, date and time of the proposed draw (sporting event schedules may be used to provide this information for 50/50 draws to be held during sporting events);
  • the price of the tickets and a sample ticket;
  • where applicable, the licence fee, which may not exceed the prescribed maximum set by the Registrar;
  • the total number of tickets to be made available for sale;
  • the rules for the draw and the collection of prizes;
  • if the total of all prizes is valued at $10,000 or more, an irrevocable standby letter of credit from a bank or financial institution is required and must be made payable to the municipality, for the full retail value of all prizes to be awarded, including taxes, with an expiry date of no less than 45 days after the licence expiry date (see 3.6.7. Financial guarantees, and 3.6.8. Letters of creditfor further information);
  • if the total of all prizes is valued at less than $10,000, the municipality may request a financial guarantee;
  • copies of all receipts, invoices, purchase orders, bills of sale or letters of intent for prizes of $500.00 or more (including cases where multiples of the same item total more than $500.00) supporting the stated retail value of the prizes, plus taxes, to allow the municipality to calculate the licence fee and the amount necessary for the financial guarantee, if required;
  • a full translation of the information to be printed on the tickets and advertisements (if other than English) and a copy of the text in the languages to be used;
  • a full explanation of how credit and debit card sales as well as dishonoured cheques will be handled; and
  • the cut-off date for the sale of tickets where payment is made by cheques, credit cards and debit cards.

The municipality may also require:

  • a raffle management plan and budget for the raffle lottery;
  • a detailed ticket sales plan, including where, when and how sales will take place; and
  • any other documentation deemed necessary by the municipality.
  1. Each applicant must include a description of all the services to be obtained from each supplier, in order for the municipality to determine whether or not the supplier must be registered under the Gaming Control Act, 1992 (see also 3.4.3. Registrationfor further information).
  2. The applicant must submit the application package to the municipal licensing authority within the time frame specified by the licensing authority. Advertising, promotion and selling of raffle lottery tickets may only begin once the municipality has issued the raffle lottery licence.
  3. Once a licence is issued, organizations must submit all requests for changes of information related to an application in writing and signed by an authorized member of the organization. The municipality will only consider changes to an application if ticket sales have not yet begun. The municipality will not act upon verbal requests. (See 5.10.1. Amendments to raffle licencesfor further information.)

5.7.1. Municipal Licensing Fees

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.

5.8.1. Provincial Licensing Policies

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:

  1. The applicant organization must notify the municipality in which the organization is based when obtaining a raffle licence issued by the Registrar.
  2. In the case of an incomplete application, the licensing official will notify the applicant of the deficiencies in the application and request all the required documents.
  3. If an applicant intends to award prizes of one million dollars or more, the application must also include:
  • a summary of the applicant’s experience in conducting and managing raffle lotteries.
  • a business plan
  • a budget
  • a ticket sales plan, including an explanation of how credit card and debit card sales as well as dishonoured cheques will be handled.
  1. If a licensee wishes to sell provincially licensed tickets from an established point of sale or door-to- door in more than one municipality, it must send a letter of notification and copies of the licence and the licence application to each municipality in which it proposes to sell tickets.

5.9.1. Provincial Licensing Procedures

Organizations applying for a raffle lottery licence from the Registrar must comply with the following procedures:

  1. The applicant must submit a completed application, on a form issued by the Registrar and including all supporting materials, to the Registrar at least 45 days prior to the proposed start date of the raffle lottery. Advertising, promotion and selling of raffle lottery tickets may only begin once the Registrar has issued the raffle lottery licence.
  2. A fully completed application must include:
    1. a list of the municipalities in which the applicant proposes to sell tickets (see also 5.8.1. Provincial licensing policies, item 4 for further information);
    2. the location, dates, times and method to be used for the draw(s) to be held, as well as how winners will be announced;
    3. where applicable, the licence fee in a cheque or money order, made payable to the Minister of Finance, in the amount set by the Registrar for all prizes greater than $50,000 of the total retail value, including all ap- plicable taxes of all prizes to be awarded;
    4. when the total fixed-prize value is $10,000 or greater, or where the licensing authority determines it appro- priate, an irrevocable standby letter of credit in a form acceptable to the Registrar, from a bank or a finan- cial institution, made payable to the Minister of Finance, for the full retail value of all prizes to be awarded, including taxes, with an expiry date of no less than 45 days after the licence expiry date;
    5. for 50/50 draws, if required by the Registrar, an irrevocable standby letter of credit;
    6. a list of prizes, with their full retail value (including applicable taxes);
    7. copies of all receipts, invoices, purchase orders, bills of sale or letters supporting the stated retail value of the prizes, including taxes:
      • if a prize has a value of $500 or more, or
      • if multiples of a prize item have a total value of $500 or more;
    8. a detailed description of the sequence of the prize draws and of the rules for the draw(s) and the collection of prizes;
    9. a full translation of the text to be used for the tickets (if other than English) and a copy of the text in the languages to be used;
    10. a full explanation of how credit card and debit card sales as well as dishonoured cheques will be handled;
    11. the price of the tickets, the total number of tickets to be made available for sale, the numbering of tickets and a sample ticket;
    12. the cut-off date for the sale of tickets where payment is to be made by cheques, credit cards and debit cards;
    13. a plan and explanation for the use of any automated telephone ticket ordering services;
    14. a raffle management plan and budget for the raffle lottery;
    15. any other documentation deemed necessary by the Registrar.
  1. Organizations must submit all requests for changes related to an application in writing, signed by an authorized member of the organization. The Registrar will not act upon verbal requests. (See also 5.10.1. Amendments to raffle licencesfor further information.)
  2. The licence fee will be paid, made payable to the Minister of Finance in the amount set by the Registrar.

5.10.1. Amendments To Raffle Licences

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.

5.11.1. Requests To Cancel Raffle Licences

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:

  • all ticket purchasers must provide signed consent indicating that they have no objections to the lottery being cancelled; and
  • the licensee must contact all ticket purchasers and refund the ticket purchase price.

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.

5.12.1. Financial Guarantees

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 creditfor further information.

5.13.1. Advertising For Raffle Lotteries

5.13.1 (A) General advertising and ticket sale guidelines

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:

  • raffle ticket orders must not be solicited or accepted from outside Ontario;
  • raffle tickets must not be mailed or otherwise distributed to persons outside Ontario; and
  • raffle tickets must not be advertised, promoted or marketed to persons outside of Ontario.

See 3.3.0. Advertising licensed lottery eventsfor further information.

5.13.1 (B) Advertising content guidelines

  1. The content of lottery promotion and advertising must not imply that participating in gaming activity promotes or is necessary for:

» 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

  1. With the exception of public service advertising, content must not appeal, either directly or indirectly to persons under the age of 18, or be placed in media targeted specifically at people under the age of 18.
  2. Content must not compare one form of gaming to another.

See 3.3.2. Advertising Content guidelinesfor further information.

5.13.1 (C) Celebrity advertising

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:

  • state or imply that playing games of chance has contributed to the celebrity’s success;
  • be aimed at individuals under the age of 18; or
  • specifically encourage individuals under the age of 18 to participate in a lottery event.

5.13.1 (D) Print and internet advertising

Print and internet advertisements for raffle lotteries must contain the following information:

  • the name of the licensee;
  • the licence number;
  • the location, date and time at which the draw (or draws) is to be held, including the location, date and time of each early bird draw, and the cut-off time for buying tickets for each early bird draw;
  • the total number of tickets issued;
  • the price of the ticket; and
  • a description of the prizes to be awarded, including their value.

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.

5.13.1 (E) Mail order forms

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.

5.13.1 (F) Advertising in national or international media

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.

5.14.1. Gaming-Related Suppliers

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.

5.15.1. Duties Of Bona Fide Members

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:

  • supervising all activities related to the conduct of the event;
  • completing and filing the required financial report on the results of the event;
  • ensuring that all terms and conditions of the licence and any additional conditions imposed by the licensing authority are complied with;
  • supervising all ticket sellers;
  • keeping all required records and depositing all monies into the designated lottery trust account; and
  • reconciling all tickets.

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.

5.16.1. Raffle Lottery Prizes

5.16.1 (A) Houses as prizes

In addition to the general raffle licensing policies, the following policies apply to house raffle applications.

  1. As a prize, a licensee may only offer a new home if the home is:

» covered by the Ontario New Homes Warranties Plan Act;

» ready for occupancy prior to the draw; and

» situated in the Province of Ontario.

  1. The following additional information is required for house raffle applications:
  • an accepted Offer to Purchase/Agreement of Purchase and Sale, including any addenda agreed to by the builder;
  • if a house is being donated, a legal document is required showing the terms of the donation;
  • a statement of whether or not the house has been completed and if the organization has access to it for the purpose of selling tickets;
  • if the house has not been completed: the anticipated completion date, which must be a date before the date set for the draw for that house;
  • the closing date for the transfer to the winner;
  • the builder’s addendum or appendix with a complete description of the home, site plan and all items included or excluded;
  • proof that the house is insured against fire, vandalism, etc.; and
  • a statement of who (the donor or licensee, not the winner) will be responsible for other fees incurred, such as legal and title search fees, land transfer tax, retail sales tax and municipal occupancy fees.
  1. Licensees offering homes or land as prizes must submit proof of title/deed transfers to the prizewinners as part of the financial report for the lottery.

5.16.1 (B) Motor vehicles as prizes

In addition to the general raffle lottery policies, the following policies apply to all motor vehicle raffle applications:

  • The licensee must award the vehicle free of any hidden costs (such as taxes, pre-delivery inspection [PDI] costs and dealer’s fees). This fact must be advertised. The licensee may choose to make the winner responsible for vehicle licence and insurance costs, provided these conditions are fully disclosed.
  • The licensee may only award new vehicles, obtained through a registered dealer in Ontario, as prizes for raffle lotteries (except as detailed below). The dealer must be registered through the Ontario Motor Vehicle Industry Council.
  • The licensee may not award leased or rental cars as prizes.
  • The licensee must inform the winner of the point of delivery of the prize(s). The point of delivery must be in Ontario.
  • The licence application must include a purchase agreement or a letter from the dealer indicating the type, model, and options of the car to be awarded and the full retail value of the car, including taxes, freight, PDI costs, duty and any other applicable costs.

5.16.1 (b) (i) Antique motor vehicles as prizes

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:

  • a certificate from two independent certified antique appraisers listing the appraised value of the automobile (value based on the lower appraisal) and attesting to its status as an antique automobile;
  • proof that the item is insured against theft, fire, and so on;
  • a copy of the ownership certificate;
  • certification that there are no liens on the automobile;
  • a safety certificate; and
  • a statement, signed by the applicant’s authorized signing officers, that the applicant will pay any taxes on the transfer of title to the prizewinner.

5.16.1 (C) Ontario Lottery and Gaming Corporation tickets as prizes

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:

  • Any raffle advertising that includes OLG product names or logos must be directed to the OLG for approval. A letter of approval from the OLG must be submitted to the licensing authority.
  • The OLG logo must be no more than half the size of the licensee’s logo.
  • The prize value of OLG tickets must be based on the face value (purchase price) of the tickets. The maximum value of these tickets must not exceed five (5) per cent of the prize board for the licensed lottery event.

5.16.1 (D) Antiques and art objects as prizes

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:

  • a certificate from two independent, certified art/antique appraisers listing the appraised value of the object (value based on the lower appraisal);
  • proof that the item is insured; and
  • a statement of ownership.

5.16.1 (E) Vacations as prizes

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.

5.16.1 (F) Liquor as prizes

Liquor may be awarded as a prize for a raffle lottery provided that the organization conducting the raffle lottery ensures that:

  • any such prize is purchased from the Liquor Control Board of Ontario (LCBO), Brewers Retail (The Beer Store) or liquor manufacturer’s retail store;
  • any such prize is awarded only to persons 19 years of age or older; and that
  • this condition is disclosed to all ticket purchasers.

5.16.1 (G) Firearms as prizes

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:

  • The licensee must ensure that the non-restricted firearm is retained and controlled by an individual who possesses the appropriate firearms licence for the purpose of transferring the non-restricted firearm.
  • The non-restricted firearm must be properly registered. The transfer of the non-restricted firearm to the prizewinner must only occur after the prizewinner can produce a valid firearm Possession and Acquisition Licence, at which time the non-restricted firearm registration must be transferred to the prizewinner.
  • The prizewinner has one year from the date of the draw in which to claim the prize and transfer registration of the firearm into the winner’s name.
  • In the event that the prizewinner does not obtain the required firearm licence, claim the prize and transfer registration of the firearm into the winner’s name within one year, the firearm or monies equivalent to the fair market value of the firearm must be donated to a beneficiary approved by the licensing authority.
  • The non-restricted firearm must be purchased or donated through an authorized firearms dealer in the province of Ontario.
  • The licensee must have the conditions for receiving the prize printed on the ticket and fully disclosed to all raffle ticket purchasers.

5.16.1 (H) Crossbows as prizes

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.

5.17.1. Unclaimed Raffle Prizes

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:

  • attempting to locate the winner through the telephone number and address on the ticket stub of the raffle ticket kept by the licensee, by sending a registered letter and telephoning; and
  • advertising in local newspapers and/or radio stations within 120 days following the draw, setting out a complete list of the names and city of residence of all the winners of any unclaimed prizes.

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.