Similar to the seal card game, a “bingo event ticket” game also provides players a chance at a secondary/ special prize. The difference is that these games are conducted in conjunction with licensed bingo events and feature “hold” tickets that contain bingo ball numbers or symbols based on the number of bingo balls being used in the bingo event. The winner of the bingo event ticket game prize(s) is determined by matching the bingo ball symbol(s) on the hold ticket with one or more of the bingo numbers called during a licensed bingo event or dabbing a pattern of bingo ball numbers or symbols on the game ticket during a bingo event.

See “7.4.1(B) Bingo event ticket game policies”, and the Break Open Ticket Licence Terms and Conditions for further information.

For pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions and and Financial Management and Administration of Pooling Bingo Halls Terms and Conditions for further information.

7.1.1. APPROVED BREAK OPEN TICKETS

In order to be approved for sale in Ontario, all break open tickets, including seal card games and bingo event game tickets, must comply with the Registrar’s requirements and standards related to break open tickets, including the Standards for Suppliers of Goods and Services: Break Open Tickets.

Schedules of approved break open tickets are available from the Registrar and can be found on the AGCO website.

7.1.2. KEY DEFINITIONS FOR BREAK OPEN TICKETS

Break open tickets are packaged in “boxes” within “deals” and are identified by “type” and “style.”

Deal: Refers to each separate series of break open tickets with the same serial number.

Box: Refers to a separately sealed box of break open tickets within a deal, as shipped by the Gaming- Related Supplier.

Type: Refers to the number of tickets per deal, the price of each ticket and the total prize value per deal.

Style: Refers to the combination of approved graphics (such as bells, boats or fruit) and prize structure used for the break open tickets. There may be many different styles within a break open ticket type, as approved graphics may be used with any type, and several different prize structures may be approved for each type.

1. In addition to a break open ticket licence(s) for a location(s) in a municipality, a licensee may also have a break open ticket licence issued by the Registrar to sell tickets in conjunction with another licensed lottery event.
2. Licensees selling tickets from locations in municipal boundaries prior to their amalgamation may be permitted to continue sales from those locations for a period not to exceed 18 months. After this time the newly amalgamated organization must conform to the break open ticket licensing policies established by the licensing authority.

See also “2.2.4. Policies: Organizations that amalgamate” for further information.

3. Where there is no Hall Charities Association at a bingo hall, individual licensees may apply to the Registrar for a licence to conduct and manage break open ticket events in conjunction with their regular bingo events.
4. Eligible organizations may apply for a licence to sell multiple ticket types under one licence. This includes tickets from multiple ticket manufacturers. Separate licences are required for each sales location.
5. All tickets sold under the same licence will be imprinted with the same licence number. To differentiate between different ticket types sold under the same licence, a unique identifier is required to be imprinted on the ticket and noted on the licence (for example, licence 12345 distinguishes ticket types by identifying as 12345-a, 12345-b, and so on.)
6. All break open tickets, including seal card games and bingo event ticket games sold in pooling bingo halls operating under the Bingo Revenue Model, must be imprinted with the registration number of the bingo hall, instead of the licence number.
7. The period for a break open ticket licence cannot exceed five (5) years, including any amendments and/or extensions.
8. The licensing authority may apply risk-based criteria to determine whether a licence period may be extended and to determine the length of the licence period. Criteria may include: licensee’s experience with charitable gaming; demonstrated level of compliance with all policies, procedures and applicable terms and conditions; and the licensee’s history of timely and accurate reporting to the licensing authority.
9. If all the tickets are sold before the licence expiry date, the licence will be deemed to have expired.
10. The licensing authority may grant an amendment extending the licence period, provided that:

• all the tickets authorized by the licence have been imprinted with the licence number and name of the licensee but not sold;
• the licensee makes the request for the extension in writing before the current licence expires; and
• the total licence period does not exceed five (5) years.

11. Only one eligible organization may be licensed to sell break open tickets per address, or location at one time.

12. Each separate business in a building, such as a shopping mall, may be considered as a separate location for licensing purposes.
13. The licensee may sell only break open tickets where the types, prize structures and graphics have been approved by the Registrar.
14. The licensee must ensure that different ticket types or styles are not mixed within a single compartment of a transparent container or break open ticket dispenser.
15. The licensee is permitted to carry over partially sold deals from one licence period to the next. Once tickets have been carried over from one licence period to the next, they are prohibited from being carried over to any further subsequent licence periods. The carry-over of any unopened boxes from one licence period to another is prohibited. There is no limit on the number of tickets that can be carried over to a new licence period as long as they come from an opened deal of tickets that has already been put into sale.
16. Any unsold tickets remaining at the end of the subsequent licence period that have been carried over from one licence period to the next must be removed from sale and then the deal collapsed at the end of the subsequent licence period. Tickets must be retained and destroyed in accordance with the Registrar’s policies.

See Section “7.9.1. Retention and destruction of break open tickets” for further information.

17. A deal of tickets must not be split between dispensers or containers.
18. Licensees may sell break open tickets from any location on the premises indicated on the licence.
19. Licensees must use break open ticket dispensers approved by the Registrar. The dispensers must be manufactured and supplied by registered suppliers.
20. Licence fees may be refunded once a licence has been issued if the licensee can demonstrate that:

• the break open tickets have not been imprinted; or
• the break open tickets were damaged, lost or destroyed as a result of circumstances beyond the licensee’s control and the licensee can account for all sold, damaged, lost and remaining tickets.

21. A licensing authority may not issue a break open ticket licence for events to be conducted on any conveyance that moves or is capable of moving including boats, trains and airplanes.

See “7.5.1. Municipal licensing policies”, and “7.6.1. Provincial licensing policies” for further information.

The following policies apply specifically to seal card games:

1. A seal card game may only be conducted and managed in conjunction with a licensed bingo event, licensed charitable gaming event or at premises used by members of a service club.
2. The licensee must only put a deal of seal card game tickets out for sale if there is a reasonable expectation that the deal will sell out during the course of the bingo event or, in the case of service club premises where bingo is not being played, that the deal will sell out within one operating day.
3. The licensee must remove the seal card window to reveal the seal card winner(s) as soon as the entire deal of seal card tickets has been sold.
4. It is not necessary for a player to be present at the time the seal card window is revealed. If a player who has a hold ticket will not be present at the time the winning numbers or symbols for the seal card prize is revealed, he/she must leave contact information with the licensee.
5. Some seal card games have rules of play that allow the licensee to choose between different options of how the game is played and the special prizes that are awarded. For example, the licensee could have the option of opening one seal on a seal card to reveal a $1,000 special prize or two seals to reveal two $500 prizes.
6. Where the licensee has options for how prizes are to be awarded, one option must be chosen and the licensee must ensure that it is posted and announced to players before starting the sale of the deal of tickets for that game.

See the Break Open Ticket Licence Terms and Conditions for further information.

For Hall Charities Associations in pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions.

7.4.1 (B) Bingo event ticket game policies

The following policies apply specifically to bingo event tickets:

1. A bingo event ticket game may only be licensed in conjunction with licensed bingo events conducted in registered charitable gaming sites or premises exempt from registration and may only be licensed by the Registrar.
2. A bingo event ticket game must be played and completed within one bingo event. If all bingo event tickets have not been sold during the bingo event, the licensee must submit a discrepancy report to the Registrar that sets out the number of tickets in the deal, the number of unsold tickets, prizes awarded and total gross receipts within 30 days of the event.
3. When the bingo event ticket game is won by dabbing a pattern of bingo ball numbers or symbols, the player must be present in order to win the bingo event ticket game prize.
4. Some types of bingo event ticket games have rules that allow the licensee to choose how the game is played. For example, the licensee could use bingo numbers called during the bingo event and have players dab a pattern of bingo ball numbers or symbols on the game ticket or simply open a seal card to determine the winner of the bingo event ticket game prize.
5. Where the licensee has options for how prizes are to be awarded, one option must be chosen and the licensee must ensure that it is posted and announced to players before starting the sale of the deal of tickets for that game.

See the Break Open Ticket Licence Terms and Conditions for further information.

2. A municipality may set its own licence fee, provided it does not exceed the amount prescribed by the Registrar. Municipalities may choose a set fee or a fee based on a percentage of the prize board, provided that the fee does not exceed the maximum prescribed by the Registrar.
3. Local charities and Provincial Break Open Ticket (PBOT) licensees are permitted to sell Break Open Tickets (BOTs) from more than one sales location within a municipality or area covered by a given licensing authority, subject to any limits imposed by the licensing authority.

   It is expected that limitations imposed by licensing authorities on the number of BOT licences issued to any eligible organization will be the result of detailed analysis and only used where the limitation is warranted (for example, where a waiting list of new eligible organizations awaiting BOT sales locations exists).

   The Registrar retains the authority to issue PBOT licences. However, the Registrar may place a limit on the number of retail locations permitted per PBOT licensee in a municipality or area covered by a given licensing authority if a similar limit, that is warranted, has been placed on the number of retail locations that may sell BOTs for each charity by the local licensing authority.

4. If a licensee wishes to change the ticket type, or add a new ticket type to be sold, the licensee must apply for an amendment to the existing licence. Licensees do not have to apply to the licensing authority for an amendment in the following circumstances:

• The licensee wants to cease selling a specific ticket type or style mid-licence; or
• The licensee sells out of a particular ticket type mid-licence and does not wish to order more inventory of that ticket type for the remainder of the licence period.

However, the licensee may choose to apply for an amendment to remove that ticket type from the licence in order to reduce the reporting requirement. Otherwise, the licensee must report nil sales for the remainder of the licence period.

5. The licensee must notify the municipality in writing if it wishes to make any changes to the licence. The licensee cannot make any changes to the conduct and management of ticket sales unless it has first received approval in writing.
6. Municipalities may only issue a licence on a form provided by the Registrar. The licence must state:

• the name and address of the licensee;
• the ticket type(s);
• identification of each ticket type with a unique identifier
• the number of deals approved, if applicable;
• the name and address of the location at which tickets will be sold;
• the duration of the licensing period;
• the name(s) of the registered Gaming-Related Suppliers supplying the break open tickets and any other gaming-related equipment or services to the licensee.

7. An eligible organization wishing to sell break open tickets at a special community event must obtain prior written approval from the board governing the event. The letter must state that the board has not, and will not apply, for a break open ticket licence to be conducted and managed at its event, and it will not participate in ticket sales or share in the net proceeds of the break open ticket lottery. (See also “7.7.1(C) Special occasions” for further information.)

7.6.1 (A) Licences issued to Hall Charities Associations in non-pooling bingo halls

The following licensing policies apply to break open ticket licences issued by the Registrar to Hall Charities Associations in non-pooling bingo halls:

1. Where a Hall Charities Association (HCA) exists, only the HCA may apply to conduct a break open ticket event in conjunction with a licensed bingo event. Organizations must be members of the HCA in order to participate in the sale of tickets and share in the proceeds.
2. An HCA may use bona fide members of the licensee managing and conducting the bingo event to sell break open tickets at a bingo event, or utilize employees of the Operator of the bingo hall that are registered as Gaming Assistants under the Gaming Control Act, 1992 to sell the tickets.
3. An HCA that applies to sell break open tickets must comply with the following policies:

• The HCA must enter into a written agreement with the Operator of the bingo hall, outlining the roles and responsibilities of each party.
• The agreement with the Operator of the bingo hall must be signed by each organization that is a member of the HCA.
• Break open tickets ordered by an HCA may not be sold during any lottery event held by organizations that are not members of the HCA.
• A licence permitting an HCA to sell a variety of ticket types is valid for a period of up to five (5) years or until the licensee sells the number of boxes permitted under the licence, whichever is less.
• An HCA must submit a report of ticket sales every three (3) months.

7.6.1 (B) Provincial break open ticket (PBOT) licensing  policies

In order to sell break open tickets throughout the province, an eligible organization must demonstrate that it provides a direct benefit to communities across Ontario and its services are accessible throughout the province.

Examples of programs ineligible to receive PBOT proceeds include:

• programs that supplement or are provided to other organizations that deliver programs and services to residents of Ontario; and
• competitions, contests and scholarship programs.

The following policies apply to PBOT licence applications:

1. To qualify for a PBOT licence:

• The organization’s provincial mandate must be stated in its governing documents.
• The organization must have a volunteer Board of Directors, with representation from all regions of the province.
• The organization must have the structure, financial resources and membership capacity to provide services province-wide, to all Ontario residents.
• The organization must have a demonstrated track record of providing direct services province-wide.
• The organization must have a presence (usually through local chapters or branches) that encompasses all regions of Ontario and allows it to provide direct services to individuals.
• A “presence” usually refers to an organization’s physical presence. For example, an organization may maintain a web site, but this alone is not enough to qualify it as having a province-wide presence for lottery licensing purposes. However, an organization’s programs may also be delivered to areas of the province where the organization has no physical presence. For example, if particular programs and services cannot be brought to the client, then the client may be brought to the program.

2. Local charities and PBOT licensees are permitted to sell BOTs from more than one sales location within a municipality or area covered by a given licensing authority, subject to any limits imposed by the licensing authority.

   It is expected that limitations imposed by licensing authorities on the number of BOT licences issued to any eligible organization will be the result of detailed analysis and only used where the limitation is warranted (for example, where a waiting list of new eligible organizations awaiting BOT sales locations exists).

   The Registrar retains the authority to issue PBOT licences. However, the Registrar may place a limit on the number of retail locations permitted per PBOT licensee in a municipality or area covered by a given licensing authority if a similar limit, that is warranted, has been placed on the number of retail locations that may sell BOTs for each charity by the local licensing authority.

3. In an amalgamated municipality, the Registrar may permit an organization to maintain its status quo by selling tickets at each of its previous locations in the former municipalities, provided:

• circumstances and market conditions warrant multiple locations; and
• the licensee can justify the need.

The Registrar will permit licensees selling from locations in an amalgamated municipality to continue sales from their former locations for an 18-month period. After 18 months, they must comply with the new municipality’s licensing policies.

7.6.2. PROVINCIAL LICENSING PROCEDURES

7.6.2 (A) Licences issued by the Registrar

Eligible organizations applying for a break open ticket (BOT) lottery licence from the Registrar must follow the procedures listed below. If the organization is an HCA in a non-pooling bingo hall, it must also observe the additional procedures set out in 7.6.2(B).

For pooling bingo halls operating under the Bingo Revenue Model, see Chapter 10, “Bingo—In Pooling Bingo Halls,” for further information.

Eligible organizations applying for a provincial break open ticket (PBOT) licence must follow the procedures outlined in 7.6.2(C).

1. The applicant must submit a fully completed application, on the form issued by the Registrar. The applicant must include all supporting materials with the application. The licensing authority may request additional information or documents.
   For first time applicants, please refer to the documents outlined in “7.1.0. Introduction”.
2. Cheques and money orders must be made payable to the Minister of Finance.
3. An eligible organization wishing to sell break open tickets at a designated fair or exhibition must obtain prior written approval from the board governing the event. In the approval letter the board must state that it has not, nor will it be applying for a break open ticket licence to be conducted and managed at its event, and it will not participate in ticket sales or share in the net proceeds of the break open ticket lottery. This letter of approval must be attached to the licence application.
4. The break open ticket licence must state the type(s) of ticket and, if applicable, the number of deals authorized to be sold under the licence.
5. An eligible organization must include on the application each type of ticket it would like to sell. If the licensee wishes to change the ticket type(s), add new ticket type(s) or sell additional deals, it must apply for an amendment.

6. The licensee must notify the Registrar in writing if it wishes to make any changes to the information on the original application. The licensee cannot make any changes to the conduct and management of ticket sales unless it has first received approval in writing.

7.6.2 (B) Licences issued to HCAs in a non-pooling bingo hall

In addition to the general requirements set out in 7.6.2(A), HCAs applying for break open ticket lottery licences in a non-pooling bingo hall must observe the procedures listed below.

An HCA must submit the following additional information with its application:

• a copy of the written agreement between the HCA and the Operator of the bingo hall;
• a list of all member organizations, with the names and signatures of an authorized representative from each, plus the signatures of two authorized representatives from the HCA;
• for first-time applicants, the HCA`s constitution and bylaws, including provisions for the handling of break open ticket sales, signed by at least three (3) current officers; and
• any changes to the HCA constitution and bylaws, signed by at least three (3) current officers.

7.6.2 (C) Provincial break open ticket (PBOT) licensing procedures

1. The eligible organization must submit a fully completed application, on the form issued by the Registrar, accompanied by the following items:

• complete copies of the applicant’s governing documents (letters patent, any supplementary letters patent, constitution, bylaws, charter, trust deed, memorandum or articles of association);
• a complete copy of the Notification of Registration letter from the Canada Revenue Agency (where registered) and any documentation that the Canada Revenue Agency has supplied to the organization (for example, any terms of registration or changes in status);
• complete copies of the two (2) most recent Registered Charity Information Returns (form T3010) and Public Information Returns as submitted to the Canada Revenue Agency;
• a copy of the organization’s verified financial statements for the two (2) previous fiscal years and a copy of the current operating budget;
• copies of the organization’s monthly bank statements for the last fiscal year and up to the current date;
• a copy of the organization’s last two (2) annual reports;
• a list of the organization’s local chapters or member/affiliated agencies and their addresses, including a detailed outline of the legal, administrative and financial relationships between the applicant and all chapters or member/affiliated agencies;
• a list of the organization’s Board of Directors and the cities in which they reside;
• a detailed outline of the programs and services that the organization provides to residents of Ontario, how these programs and services are delivered across the province and the costs incurred in delivering the programs and services;
• an outline of sales tracking procedures, including a list of ticket sales locations and their respective registration numbers, noting the municipality for each location;
• a list of bona fide members who will be assisting with the break open ticket administration/sales; and
• the type and style or styles of tickets to be ordered under the licence (no ticket samples are required).

2. If an application is incomplete, the Registrar will send the applicant a letter outlining the deficiencies in the application and requesting the required documents.
3. Prior to selling tickets in a municipality, the organization must notify the municipality of its intention to sell break open tickets at a specific location and provide it with a copy of the licence.
4. Once a PBOT licence has been issued, the licensee must provide the following information to the Registrar:

• break open ticket lottery reports;
• when changes occur, an up-to-date list of all locations where the licensee sells or intends to sell break open tickets;
• an annual, up-to-date list of the Board of Directors;
• any changes to governing documents as they occur; and
• verified or audited annual financial statements.

5. A licensee must pay the prescribed PBOT licence fee. The amount owed is based on the tickets ordered in the previous quarter. The cheque for licence fees must be made payable to the Minister of Finance.

7.6.3. ADMINISTRATIVE RESPONSIBILITIES OF HCA IN A NON-POOLING BINGO HALL

When an HCA wishes to sell multiple ticket types under a single licence, it must enter into an agreement with the Operator of the bingo hall, outlining a division of roles and responsibilities. Only the HCA may perform certain duties required for the conduct and management of the lottery event.

7.6.3 (A) Duties an HCA must perform

• supervising both hall sales and cash counting;
• determining and purchasing the types and styles of tickets to be sold;
• completing and filing the lottery reports;
• maintaining a designated trust account to administer the BOT lottery;
• keeping financial records;
• distributing proceeds to the HCA members on a pro rata basis; and
• advertising, marketing and promoting ticket sales.

If an eligible organization proposes to sell break open tickets at a location other than a bingo hall or a premises it owns or leases for its own charitable activities, the location must be registered as a Seller under the Gaming Control Act, 1992. The Seller’s registration number must be included with the licence application.

In order to sell break open tickets at a registered Seller location, the licensee must enter into a contract with the Seller. This contract must contain a termination clause allowing either party to terminate the contract upon at least 90 days written notice prior to licence expiry, to be effective upon licence expiry. The termination clause must also provide for immediate cancellation of the contract should the organization’s licence or the Seller’s registration be suspended or revoked. In the event that a licence is suspended or revoked, the Seller may enter into a contract with another licensee.

The licensee may pay the Seller the allowable commission for the sale of break open tickets. The licensee may choose to request its net proceeds (gross proceeds minus sales commissions) when the break open tickets are delivered to the Seller. Alternatively, the licensee may choose to allow the Seller to pay the net proceeds for all break open tickets within 30 days after they have been delivered for sale.

If a licensee cancels a contract with a Seller and the Seller does not sell all the deals but has paid the full net proceeds, the licensee must refund to the Seller the full amount of the net proceeds for the unsold deals.

For purposes of reconciliation, the Seller is responsible for the security of the break open tickets once the seal on the deal package is broken. The Seller must return all the unsold deals and partial deals to the licensee, to allow the licensee to do a full reconciliation.

7.7.1 (C) Special occasions

A municipality may issue break open ticket licences allowing eligible organizations to sell break open tickets at special community events of limited duration, such as community festivals, regardless of whether or not they have licences to sell tickets at break open ticket Seller locations, provided that:

• the applicant has obtained the written approval of the board of the event, signed by an authorized board member;
• only one licence for a special occasion is issued per organization, per year;
• only one organization is licensed during the community festival regardless of the size of the event; and
• the licence is not issued for more than five (5) consecutive days.

An eligible organization with a current break open ticket licence may apply to be licensed to sell tickets at a community festival in one of two ways:

7.8.1 (A) Break open ticket dispensers

Break open ticket dispensers are electrical or mechanical devices, and do not include “containers” as defined in 7.1.2, used to dispense break open tickets. They may be used in bingo halls, Seller locations registered to sell break open tickets under the Gaming Control Act, 1992 and at other locations exempt from registration, provided the following conditions are met:

1. Break open ticket dispenser models must be approved by the Registrar and supplied by a registered Gaming-Related Supplier.
2. The registered Gaming-Related Supplier must be able to provide proof, in writing, that the Registrar has approved the break open ticket dispenser.
3. A licensee may choose to purchase or rent a dispenser from a registered Gaming-Related Supplier.
4. If the licensee chooses to purchase a dispenser, the licensee must enter into a purchase agreement with a manufacturer that is a registered Gaming-Related Supplier.

If the licensee chooses to rent a dispenser, the licensee must enter into a written contract with the registered Gaming-Related Supplier. Any rental contract must state the terms and duration of the rental and outline what will happen in the event that the licence is suspended, revoked or cancelled.

5. The licensee must pay for the purchase or the rental of a break open ticket dispenser with a cheque from the lottery trust account.
6. The maximum allowable expenses set by the terms and conditions allow licensees the option of expensing an additional amount prescribed by the Registrar towards the purchase or rental costs of a break open ticket dispenser.

7.8.1 (B) Seal card display

The Break Open Ticket Licence Terms and Conditions require that the seal card be prominently displayed identifying the dollar value of the seal card prizes available to be won.

7.8.1 (C) Bingo event ticket game poster

The Break Open Ticket Licence Terms and Conditions require that a bingo event ticket game poster be displayed to identify the dollar value of prizes available to be won.

7.8.1 (D) 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. The licensee must designate at least one bona fide member to be responsible for the conduct of the break open ticket lottery. If the tickets are to be sold by an HCA in a non-pooling bingo hall, the association must designate a minimum of two bona fide members.

The licensee must submit the names of the designated bona fide members to the licensing authority and must be prepared to provide documentation proving that the designated individuals are bona fide members and not members of convenience. The designated members must be at least 18 years old. (See also “3.5.2 Bona fide members”.)