Effective January 1, 2012
These Rules list general, procedural and administrative matters that apply to arbitration of a lottery dispute using the provisions of section 11.2 of Ontario Regulation 198/00 as amended by Ontario Regulation 283/07 made under the Ontario Lottery and Gaming Corporation Act, 1999. The Rules are effective January 1, 2012 and replace the Interim Rules of Procedure for Lottery Arbitrations.
It is the choice of the participants to the dispute to resolve a lottery dispute through arbitration or by proceeding in the Ontario courts. While, in general, arbitration is considered faster, more informal, and, often, less expensive than the court, each participant should obtain independent legal advice and consider the advantages and disadvantages of both systems before making your decision.
Costs of the arbitration are the responsibility of the participants. The arbitrators and the AGCO shall recover the costs for all services provided in relation to arbitration of a lottery dispute from the participants with the anticipated charges being collected from the participants in advance of the arbitration.
1.1 The Rules are part of and complete the arbitration agreement between the Parties.
1.2 The Rules apply to every arbitration commenced pursuant to subsection 11.2(4) of Ontario Regulation 198/00 made under the Ontario Lottery and Gaming Corporation Act, 1999 as amended.
1.3 The Rules shall be interpreted liberally so that arbitrations are fair and, where appropriate, expense and delay is avoided.
2.1 In these Rules:
“AGCO” means the Alcohol and Gaming Commission of Ontario
“Applicant” means a person, or persons, who initiates an arbitration by delivering and filing a Notice of Dispute
“Arbitration Act” means the Arbitration Act, 1991, S.O. 1991, c. 17, as amended
“arbitration agreement” means the submission of a dispute to arbitration in accordance with the Regulations and the Rules
“certificate of delivery” is the form describing the manner and time of delivery of a document in the arbitration
“Chair” means the Chair of the Board of the AGCO
“day” means any day of the week from Monday to Friday, excluding a statutory holiday and any other day the Chair’s Office is closed
“deliver” means to provide a Notice, Response, or other document to a Party or their representative
“dispute” means the issue of the right of a participant in a lottery scheme to a prize or portion of a prize valued at $10,000 or more
“Fees” mean the fees contained in the Fee Schedule attached to these Rules and include the Initial Filing Fee, the Arbitration Fee, and Additional Arbitration Fees payable on the direction of a Tribunal
“file” means file with the Chair’s Office and a “filing” is anything that is filed
“Initial Filing Fee” means the fee payable upon filing a Notice of Dispute or Response
“Notice of Dispute” means the Form completed by an Applicant containing information on the issues in dispute
“Notice of Resolution” means the Form confirming the resolution of the dispute
“OLG” means the Ontario Lottery and Gaming Corporation
“participant” means a person who has or claims to have an interest in a disputed prize or portion of the disputed prize, but does not include the OLG
“Party” means a participant in the lottery scheme who is the Applicant or any Responding Party
“Pre-Arbitration Conference” means the conference held after the Tribunal’s appointment at which the Parties meet with the Tribunal to prepare for the hearing
“President” means the chair of a Three Member Tribunal
“representative” means the representative of a party
“Responding Party” means the person or persons who respond to a Notice of Dispute and a “Response” is the Form completed by a Responding Party
“Rules” means these Rules
“Simplified Arbitration” is an arbitration conducted pursuant to Rule 11 and the “Simplified Arbitration Fee” is the fee payable by each party for the appointment of a Simplified Arbitration Tribunal
“Three Member Tribunal” means an arbitration conducted pursuant to Rule 10 and the “Three Member Tribunal Fee” is the fee payable by each for the appointment of a Three Member Tribunal
“Tribunal” means the person(s) appointed by the Chair to arbitrate a dispute.
3.1 Where the Rules refer to a period of time, that period of time does not include Saturdays, Sundays, statutory holidays and any other day when the Chair’s Office is closed.
3.2 A Tribunal may shorten or lengthen any time period in the Rules as it considers appropriate.
4.1 The Chair shall establish a fee schedule to recover all costs and expenses of the arbitration. The fee schedule is part of the Rules.
4.2 Fees must be paid to the AGCO at the times specified in the Rules or when directed by the Tribunal. Fees may be paid in cash, by money order, Canadian bank draft or certified cheque.
4.3 The Applicant must pay the Initial Filing Fee at the time of filing the Notice of Dispute. The Chair’s Office will not accept or process a Notice of Dispute without the Initial Filing Fee.
4.4 A Responding Party must pay the Initial Filing Fee at the time of filing the Response. The Chair’s Office will not accept or process a Response without the Initial Filing Fee and the arbitration shall not proceed any further until the Initial Filing Fee is paid.
4.5 The Parties to the arbitration must pay the Arbitration Fees to the AGCO no later than 10 days after being advised by the Chair’s Office of the amount to be paid. The Chair will appoint the Tribunal upon receipt of the Arbitration Fees from the Parties.
4.6 The Tribunal may, at any time, direct the parties to the arbitration to pay Additional Arbitration Fees where the anticipated cost of the arbitration will exceed the total of the Initial Filing Fee and Arbitration Fee. Additional Arbitration Fees must be paid within 15 days of the direction. Where Parties fail to comply with a direction to pay Additional Arbitration Fees the Tribunal may suspend or terminate the arbitration.
4.7 Prior to issuing its decision, the Tribunal shall provide its account to the Chair and the Parties to the arbitration and, where necessary, shall issue a direction to pay any Additional Arbitration Fees. The Chair shall not release the final award to the Parties until all Fees are paid.
5.1 An Applicant must deliver a Notice of Dispute (Form 1) to all participants and the board of the OLG and file it, with certificates of delivery (Form 2) and the Initial Filing Fee, with the Chair’s Office.
5.2 A Responding Party must deliver a Response (Form 3) to the Applicant, the other participants and the board of the OLG no later than 10 days after receiving the Notice of Dispute. The Response, certificates of delivery, and the Responding Party’s Initial Filing Fee must be filed with the Chair’s Office no later than 3 days after delivery to the other participants and the OLG.
5.3 Where the Response of some or all Responding Parties is identical they may file a Joint Response and pay one Initial Filing Fee and one Arbitration Fee. The Tribunal will direct those Responding Parties with respect to apportioning any Additional Arbitration Fees among them as it considers appropriate.
5.4 The Chair’s Office shall not proceed with appointing a Tribunal until all participants who are or reasonably could be an Applicant or a Responding Party have filed a Notice of Dispute or a Response, as the case may be, and paid all applicable fees.
5.5 Except with the permission of the Tribunal, a Party to the arbitration may not present evidence or representations at the arbitration about a material fact not contained in the Notice of Dispute or Response. The Tribunal may give its permission on any terms it considers appropriate.
6.1 The Notice of Dispute, the Response, and any other documents may be delivered and filed by hand, courier, facsimile transmission, or regular mail. Delivery to a Party’s representative is delivery to the Party. Documents or other materials filed for use in the arbitration must be delivered to all Parties.
6.2 The day a document is delivered is the day it is received by the other Party or its representative. Documents delivered by regular mail are considered delivered on the 5th day after mailing.
6.3 All filings must be received by the Chair’s Office during normal office hours (8:30 a.m. – 5:00 p.m.). Filings received outside normal office hours are considered filed on the next day.
7.1 Parties who resolve the dispute within 45 days of filing the Notice of Dispute must file a Notice of Resolution (Form 4) with the board of the OLG and the Chair’s Office no later than 3 days after the dispute is resolved.
8.1 Within 3 days of receiving a Notice of Dispute, the OLG shall advise the Chair’s Office whether it has conducted an investigation with respect to the subject matter of the dispute and, if so, whether the investigation is complete.
8.2 Where an OLG investigation is ongoing, the arbitration and the time for taking any steps required by these Rules is suspended until:
8.3 The OLG shall immediately deliver the results of a completed investigation and summary of key findings to the Chair’s Office.
8.4 The Chair’s Office will advise the Parties where an OLG investigation is ongoing. The Chair’s Office will deliver copies of the investigation results and summary of key findings to the Parties within 3 days of receiving them. The results and summary will be delivered to the Tribunal at the time of its appointment.
9.1 The Chair will appoint a Tribunal in a timely manner after the conditions noted in these Rules have been met. The Chair’s Office will notify the Parties of the appointment.
10.1 Where all parties to the arbitration:
the Chair will appoint a panel of three persons as a Tribunal. The Chair’s Office will notify the Parties to the arbitration of the appointments.
10.2 The panel will designate one of its members as President of the Tribunal. The President may hear motions, make procedural orders, and conduct the pre-arbitration conference.
10.3 Where one member of a Three Member Tribunal resigns or is unable to complete the arbitration, the arbitration shall proceed as a Single Member Tribunal before the Tribunal’s President. Where the President of the Tribunal resigns or cannot complete the arbitration, the Parties may choose to have the remaining members continue the arbitration or to recommence the arbitration before a different Tribunal.
10.4 The decision of the majority of a Three Member Tribunal is the Tribunal’s award. Where there is no majority or unanimous decision, the President’s decision is the Tribunal’s award.
11.1 Where the Parties to the arbitration agree, file a written agreement with the Chair, and pay the Simplified Arbitration Fee, the arbitration shall be conducted as a Simplified Arbitration. The Simplified Arbitration is intended to be a faster, more informal, and less expensive process. A Three Member Tribunal shall not conduct a Simplified Arbitration.
11.2 A Pre-Arbitration Conference will be conducted by conference telephone call within 15 days of the Simplified Arbitration Tribunal’s appointment. At that time the Simplified Arbitration Tribunal will:
11.3 Rules 10, 13.2 (iv), (ix), 15.5, 15.6, 16.3 and 16.4 do not apply in a Simplified Arbitration. The Simplified Arbitration Tribunal shall not consider expert evidence, order the detention, preservation, or inspection of property or documents, or grant interim measures of protection. Amendments to the Notice of Dispute or Response shall not be granted except on consent of all Parties. There shall be no court reporter or transcript of the proceeding before the Simplified Arbitration Tribunal. The Simplified Arbitration Tribunal may shorten times for making motions or taking any other step in the proceeding as it considers appropriate.
11.4 Unless the Tribunal permits otherwise, evidence shall be in the form of sworn statements subject to cross-examination before the Simplified Arbitration Tribunal.
11.5 The Simplified Arbitration Tribunal shall deliver its award to the Chair’s Office within 15 days of the completion of the hearing.
12.1 An arbitrator shall be independent of the Parties and shall act impartially.
12.2 Before accepting an appointment, a person shall disclose to all Parties to the arbitration any information that may give rise to a reasonable apprehension of bias or conflict of interest.
12.3 If, at any time before the arbitration is concluded and the final award issued, an arbitrator becomes aware of circumstances that may give rise to a reasonable apprehension of bias or conflict of interest, they shall be disclosed to the Parties to the arbitration as soon as possible.
12.4 A Party to the arbitration who alleges bias or conflict of interest must, within 5 days of becoming aware of the circumstances on which the allegations are based, deliver written notice detailing the allegations to all other Parties to the arbitration and file it with the Chair’s Office for delivery to the Tribunal.
12.5 If an arbitrator resigns the appointment after considering the allegations, the Chair will appoint a new arbitrator.
12.6 If the arbitrator does not resign, the Tribunal will decide the allegations. A Party may challenge the Tribunal’s decision by commencing an application to the Court in accordance with the provisions of the Arbitration Act and the Rules of Civil Procedure within 10 days of the Tribunal’s decision.
13.1 The Tribunal has the authority to decide all matters relevant to the dispute respecting the right of a Party before it to a prize or portion of a prize arising from a lottery scheme that is an “online” or “scratch and win” ticket sold on behalf of the Ontario Lottery and Gaming Corporation by a Lottery Retailer registered under the Gaming Control Act, 1992, provided that all participants have agreed to resolve the dispute by arbitration under these Rules and all Parties have paid the Fees as provided for under these Rules.
13.2 The Tribunal may:
A Tribunal’s orders and directions may be enforced in the Court as if they were made by the Court in an action.
13.3 The Applicant or a Responding Party may allege the Tribunal is exceeding its authority by delivering a written objection to the Tribunal and all other Parties to the arbitration and filing its objection with the Chair’s Office as soon as the basis for the allegations become known. The Tribunal may rule on the objection as a preliminary question or address it in the final award. The Applicant or a Responding Party who disputes the decision may commence an application in the Superior Court within 10 days of receiving the decision. The arbitration may continue while the application is pending.
14.1 Except for Simplified Arbitrations, the Tribunal will hold a Pre-Arbitration Conference within 30 days of its appointment. The Pre-Arbitration Conference may be held in person or by conference call.
14.2 At the Pre-Arbitration Conference the Tribunal shall meet with the Parties to the arbitration to:
14.3 The Parties to the arbitration must file an Agreed Statement of Facts, signed by the Parties or their representatives, with the Chair’s Office for delivery to the Tribunal no later than 10 days after the Pre-Arbitration Conference.
14.4 Within 7 days of the Pre-Arbitration Conference, the Tribunal shall send a written record of the parties’ agreements, other than agreements on facts, and any Directions or other Orders arising out of the Pre-Arbitration Conference to the Chair’s Office for delivery to all the parties to the Arbitration.
15.1 Subject to the Rules, the Tribunal may conduct the arbitration in the manner it considers appropriate. The Parties to the arbitration shall be treated fairly and have the opportunity to present its case and to respond to the other Parties’ cases.
15.2 Representatives must provide the Chair’s Office, and all other Parties to the arbitration, with their name, address, phone and facsimile numbers upon being retained.
15.3 The Tribunal will advise the Chair’s Office of all hearing dates. The Chair’s Office will issue notices of hearing setting out the date(s), time, and place of hearing on behalf of the Tribunal at least 5 days before the hearing.
15.4 A Party may request a summons for a witness from the Tribunal. The Party is responsible for service of the summons. A summons is not enforceable unless served in the same way as a Court issued summons.
15.5 The Chair’s Office will arrange for the attendance of a court reporter where a Party to the arbitration files a written request with the Chair’s Office at least 5 days before the start of the hearing. The reporter will bill the requesting Party directly for the cost of attendance and any transcripts. A copy of any transcript shall be provided to the Tribunal where a party refers to it in evidence or submissions. Other Parties are entitled to a copy of the transcript on payment of reproduction costs. This rule does not apply to Simplified Arbitrations.
15.6 Except in Simplified Arbitrations, the Tribunal may permit a Party to the arbitration to amend a Notice of Dispute or Response on terms it considers appropriate after considering any delay in making the amendments.
16.1 The Tribunal shall determine the admissibility, relevance and materiality of the evidence offered. Strict conformity with the rules of evidence is not required but the Tribunal cannot admit documents, materials, or testimony inadmissible in a court by reason of privilege.
16.2 The Tribunal may take notice of any facts that may be judicially noticed.
16.3 Except in Simplified Arbitrations, a Party to the arbitration wishing to rely on expert opinion evidence must give written notice, including the curriculum vitae of the proposed expert and a summary of the proposed evidence, to all Parties and the Chair’s Office 15 days before the first day of hearing. A copy of the expert’s report, if any, must be delivered to the other Parties to the arbitration and the Chair’s Office 5 days before the first day of hearing.
16.4 Except in Simplified Arbitrations, a Party may provide some or all evidence in the form of a sworn statement. Where any Party to the arbitration requests, the maker of the statement will be produced for cross-examination before the Tribunal.
16.5 The Tribunal may admit evidence or accept submissions given by telephone or videoconference but, in doing so, will ensure that all Parties to the arbitration can hear the evidence or submissions and each other.
17.1 Pursuant to the Regulations, the Tribunal may, on its own motion or on the motion of any Party, dismiss a Party’s claim to an interest in a prize without a hearing where the Tribunal is of the opinion:
18.1 Where the parties to the arbitration settle the dispute after the Tribunal’s appointment, the Tribunal will terminate the arbitration. Where the Parties to the arbitration request, the Tribunal will record the settlement in the form of an award.
18.2 Where the Notice of Dispute is withdrawn on consent the Tribunal will terminate the arbitration. The arbitration will not terminate where a Responding Party objects to the withdrawal and the Tribunal concludes the Responding Party is entitled to a final settlement of the dispute.
19.1 Where a Party wishes the Tribunal to consider a written offer to settle in respect of an award of costs, the Party to the arbitration must establish that the offer:
20.1 The Tribunal shall deliver the final award to the Chair’s Office no later than 45 days after the hearing is complete and any time for filing written submissions has passed. Failure to deliver the award within this time does not cause the Tribunal to lose jurisdiction over the dispute. The Chair’s Office will not release the award to the Parties to the arbitration until all outstanding fees are paid.
20.2 The final award must be in writing and signed by the arbitrator. The Tribunal’s award binds the Parties unless varied or set aside.
21.1 On the request of a Party to the arbitration or on its own initiative a Tribunal may amend or vary an award or final award to correct a clerical, typographical, arithmetical or accidental error or mistake.
21.2 Within 5 days of receiving the final award a Party to the arbitration may apply to the Tribunal for clarification. The Tribunal may clarify the final award where it considers appropriate. The clarification becomes part of the final award.
22.1 Within 20 days of receiving the final award a Party to the arbitration may apply to the Tribunal to decide costs where this issue was not decided in the final award.
22.2 The Tribunal may fix the costs and expenses of the arbitration including reasonable legal fees. Costs and expenses may be apportioned between the Parties to the arbitration. In deciding whether to award costs and expenses, the Tribunal may consider the result of the arbitration, the conduct of the Parties, the complexity of the issues, and any offers to settle.
22.3 The Tribunal may award pre and post judgment interest on an award in accordance with the rates contained in the Courts of Justice Act.
23.1 The Tribunal’s award may be enforced by making application to the Court in accordance with the Rules of Civil Procedure and the Arbitrations Act. A certified copy of the award must be obtained from the Chair’s Office and attached to the application for enforcement.
Note: Where Responding Parties file a Joint Response they pay one Initial Filing Fee, one Mediation Fee and one Arbitration Fee. The Tribunal may apportion any Additional Arbitration Fees among those Responding Parties as it considers appropriate.
| Amount of Claim | Applicant | Each Responding Party |
|---|---|---|
| $10,000 to $2 million | $3,000 | $3,000 |
| Above $2 million | $5,000 | $5,000 |
| Amount of Claim | Applicant | Each Responding Party |
|---|---|---|
| Above $2 million | $15,000 | $7,500 |
| Amount of Claim | Applicant | Each Responding Party |
|---|---|---|
| $10,000 - $2 million | $1,500 | $1,500 |
| Above $2 million | $2,500 | $2,500 |
The Tribunal must calculate all reasonable and likely fees and expenses, taking into account expected hearing and preparation time, travel and other hearing related costs, above the Arbitration Fees set out above. The Tribunal shall issue further direction(s) to pay Additional Arbitration Fees, where necessary, following the Pre-Arbitration Conference and at any time during the arbitration where the circumstances require.
Prior to issuing the final award the Tribunal will issue a direction to pay Additional Arbitration Fees for any remaining costs or expenses.