The Alcohol and Gaming Commission of Ontario (AGCO) is committed to supporting service clubs including Royal Canadian Legion branches or similar veterans’ service organizations.

In response to requests from stakeholders, the AGCO is pleased to announce a permanent increase to the allowable percentage of net lottery proceeds which service clubs that own their own facility may use for general operating and maintenance costs. As of February 28, 2023, the allowable percentage is increased from two (2) per cent to 20 per cent.

These changes demonstrate the AGCO’s ongoing commitment to support Ontario charities by increasing flexibility and reducing burden.

(Note: this percentage is in addition to eligible event expenses. Organizations do not need prior approval from a licensing authority to use this amount.)
 

Reminder: Current Opportunities to use Beyond 20 per cent of Proceeds

There are several ways that service clubs can use more than 20 per cent of net lottery proceeds for general operating and maintenance costs as outlined below.

  1. Community Use:
    Service clubs may increase the percentage used for operating expenses if the facility is used free of charge by other charitable organizations, for charitable purposes to benefit the community. This request must be approved by a licensing authority.
         
    The allowable percentage of net lottery proceeds can be increased to match the percentage of time that these groups use the facility. For example, if charitable organizations in the community use a facility free of charge 30 per cent of the time, the service club that owns that facility may then request to use 30 per cent of net lottery proceeds toward operating expenses for the facility.
     
  2. Rent Chargeback:
    A service club may run a lottery event in its own facility and repay itself for “renting” the facility.
    • Rent chargebacks are not subject to restrictions described in Section 2.4.1 – Policies: Eligible Use of Proceeds of the Lottery Licensing Policy Manual.
    • Prior approval is not required from the licensing authority for rent chargebacks.

The Licensing Authority requires that rent charged under the rent chargeback policy is consistent and reasonable. This will help to protect the amount of fundraising proceeds that go towards charitable purposes.
 

Helpful Resources

  • You may access the updated Lottery Licensing Policy Manual (LLPM) on the AGCO’s website.
  • Charitable gaming-related inquiries can be sent directly to the AGCO’s Eligibility Officers at lottery.licensing@agco.ca. The AGCO’s Customer Service can be reached at 1-800-522-2876, Monday to Friday from 8:30 a.m. to 5 p.m. 
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