The Alcohol and Gaming Commission of Ontario (AGCO) has updated several lottery policies to remove the cap on seller commission for Paper Raffles and Media Bingo, along with removing the prohibition on Catch the Ace paper lotteries, to align with other charitable lottery products.
Please see below for the updates to the Lottery Licensing Policy Manual, Raffle Licence Terms and Conditions and Media Bingo Terms and Conditions.
What is changing?
Licensed charities may now negotiate commissions directly with sellers and determine commissions, provided they are reasonable and tied to the cost of service provided by the seller.
These updates further the AGCO’s commitment to adopt an outcomes-based regulatory approach and reduce burden for the charitable gaming sector. Local charitable organizations will have greater flexibility to make decisions that best serve their fundraising objectives.
Important reminders
- Charities must still receive approval for other expenses incurred under their licence and retain receipts for seller commission paid.
- Licensing authorities will not require documentation to be submitted as part of the application process, however, charities are still subject to audit to determine compliance.
- Charities are reminded of their legal requirement to meet their obligations under the Criminal Code and with respect to conducting and managing a
charitable gaming scheme.
As with all licensed charitable lottery events, charities must take the necessary steps to ensure that they are conducting and managing the lottery event within Ontario.
Questions?
For charitable gaming-related inquiries, email an AGCO Eligibility Officer at lotterylicensing@agco.ca or call AGCO Customer Service at 1-800-522-2876, Monday to Friday from 8:30 a.m. to 5 p.m.
Updates to the Lottery Licensing Policy Manual
The section in the Lottery Licensing Policy Manual that prohibited ticket seller sales commissions for Catch the Ace events has been removed to reflect this change:
- 5.2.1 (L) (iii) Catch the Ace progressive raffle lottery 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.
- S
ection 8.5 (a) & (b): Ticket sellers are not permitted to be paid a sales commission.(Removed) - 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.
Updates to the Raffle Licence Terms and Conditions
The following amendments to the Raffle Licence Terms and Conditions have been made:
Raffle Licence Terms and Conditions:
(8) Proceeds and expenses
8.5 Each expense must be individually calculated and paid separately by cheque, drawn on the designated lottery trust account described in Section 10. The licensee must pay each Gaming-Related Supplier separately.
a. Ticket sellers may be paid a sales commission set by the charity.
b. Sales commissions may be paid by cash provided they are supported by a receipt.
Media Bingo Terms and Conditions
The following amendments to the Media Bingo Terms and Conditions have been made:
(5) Proceeds and expenses
5.3 Persons assisting in the sale of Media Bingo cards may be paid a sales commission set by the charity.
These changes adopt an outcomes-based approach to align seller commission rules for lottery products in the Charitable Gaming Framework.