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 four 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.

5. 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.
6. 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.
7. Raffle tickets must not be offered by the licensee as contest or promotional prizes through any public medium.
8. 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- tees” and “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.
9. 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.
10. 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.
11. 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.
12. The licence application must state the number of tickets to be issued.

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 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.

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.

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 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:

• 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.

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.

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.

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

“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.

5. 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.
6. Admission to an event does not require participation in the auction-style raffle.
7. 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.
8. Several prize items may be offered at the auction-style raffle, with one draw per item.
9. Each prize may consist of a single item or several items bundled as a single prize (for example, a gift basket).
10. The prize items must be in the possession of the licensee before the draws take place.
11. 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).
12. An approximate market value for each prize must be determined before the event. The maximum total prize value may not exceed $10,000.
13. 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.

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.

4. 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.
5. 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.

6. The licensee must use a container that is large enough to hold all sold tickets or stubs.
7. All prizes must be paid by cheque in Canadian funds.
8. The Rules of Play must be posted at the location of the draw and be readily available to the public.
9. 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.
10. 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.
11. 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.
12. 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.

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:

• Lottery Licence Terms & Conditions 
• Raffle Licence Terms & Conditions 
• Financial Management and Administration of Non-Pooling Bingo Halls Terms and Conditions

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:

• Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms & Conditions 
• Financial Management and Administration of Pooling Bingo Halls Terms and Conditions

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 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.)

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.

5.4.1 (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”

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 events” for 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

2. 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.
3. Content must not compare one form of gaming to another.

See “3.3.2. Advertising Content guidelines” for 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.

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.

2. 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.

3. 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.

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: