Electronic Raffles: Licensing

This page is intended to help those applying to run an electronic raffle. Suppliers interested in becoming registered with the AGCO should refer to Charitable Gaming: Suppliers.

Those relate to requirements that you must be aware of and consider aside from the actual legality of a raffle in Canada. For example, there are provincial licencing requirements that may or may not be available, depending on your organization, requirements of setting out chances of winning and values of prizes, jurisdication issues, special. Raffles are a very popular method of fundraising used by charities and nonprofit organizations throughout Canada. The Canadian Federal Government allows each Canadian province to have its own laws and regulations. As such, Ontario has its own regulatory office and laws. Electronic raffles refer to the use of computers for the sale of tickets, the selection of winners and the distribution of prizes in a licensed charity raffle. For information on the Electronic Raffle Regulatory Framework, please view Information Bulletin No. If you have applied for an electronic raffle in the past, please move down to step 3.

The Registrar has put in place an Electronic Raffle Regulatory Framework that allows eligible charitable or religious organizations to be licensed to conduct and manage electronic raffles in Ontario.

Electronic raffles refer to the use of computers for the sale of tickets, the selection of winners and the distribution of prizes in a licensed charity raffle.

For information on the Electronic Raffle Regulatory Framework, please view Information Bulletin No. 89

If you have applied for an electronic raffle in the past, please move down to step 3.

Before your raffle

Determining Eligibility for a Charitable Gaming Licence

The licensing authority you are applying to will determine whether or not your organization is eligible. Charitable registration with Canada Revenue Agency or incorporation as a non-profit organization does not guarantee eligibility for a licence.

Your organization may be eligible for a charitable gaming licence if it provides charitable services to Ontario residents in one or more of the following areas:

• relieves poverty,
• advances education,
• advances religion,
• benefits the community,
• has carried out activities consistent with its charitable purpose for at least one year,
• is located in Ontario,
• is non-profit.

Organizations that only promote the private interests of their members do not qualify for a lottery licence. This may include, but is not limited to:

• Adult recreation or sports
• Individual sport teams
• Unions or employee groups
• Social clubs
• Professional associations
• Political, government, lobbying or advocacy groups

Are Raffles Legal In Canada

To determine eligibility please include with your application, a copy of each document noted below, that pertains to your charity or foundation:

• Letters patent
• By-laws
• Constitution
• Charter
• Trust deed
• Memorandum/articles of association, signed as required
• Canada Revenue Notification of Registration Letter - If your organization is registered
• Detailed outline of programs/services - What they are, how they are delivered to clients, specific costs, supporting materials, etc
• Current operating budget
• Verified financial statements for the last fiscal year
• List of Board of Directors with contact information
• Annual updated List of Board of Directors
• Changes to governing documents and Canada Revenue status - Includes amendments, supplements, reinstatements, revocations, dissolutions, etc
• Annual verified financial statements, (see Raffle Licence Terms and Conditions, reporting requirements)

If you believe your charity is eligible based on the above information, please continue to step one. If you need more clarification, please contact the AGCO: 416-326-8700 or toll free 1-800-522-2876.

Step 1: Initial Raffle Planning

Details to consider as you are planning your raffle:

• Raffle Location(s):

  • Where will the raffle be held?

  • How many days will the raffle run?

  • What type of raffle will I run?

  • What are the prize(s)?

• Technical solution
  • Will raffle tickets be sold online, in person or both?
  • Has my electronic raffle solution been reviewed and approved by the AGCO?
  • How will prizes be distributed?

Step 2: Review Applicable Terms and Conditions

Please ensure that you read and understand the applicable Terms and Conditions before submitting your application to the AGCO. Terms and Conditions that electronic raffle licensees must comply with include:

Step 3: Application for an Electronic Raffle Licence

Are Raffles Illegal In Canada

Before completing a licence application on iAGCO, please refer to the Raffle Application Requirements for Lottery Licenses Issued by the Registrar of Alcohol and Gaming.

The AGCO requires a minimum of six-weeks to complete the application process for a licence.

The following is a list of the documentation that is required to support your application for an electronic raffle licence. The AGCO may ask you to provide additional information.

• Copy of municipal notification; you must notify the local municipality in writing of your intent to apply for an electronic raffle licence and provide a copy of that written notification to the AGCO with your application
• Rules of Play for the electronic raffle
• Ticket Sample
• List of scheduled events
• Venue floor plan outlining where tickets are to be sold
• Irrevocable standby letter of credit made payable to the Minister of Finance for fixed prize draws over $10,000. Exceptions include electronic 50/50 draws which do not require a letter of credit unless requested by the licensing authority.
• Outstanding raffle licence financial reports (See Raffle Licence Terms and Conditions reporting requirements)
• Outstanding financial reports for other charitable gaming events
• Charities developing their own raffle sales platform will be subject to review and approval by the AGCO’s Technical and Laboratory Services. Please use this Electronic Raffle Solution Review Form to submit your proposed solution for assessment.

What Are The Laws On Raffles

TheAGCO requires a minimum two-week written notice for application amendments. AGCO approval is required for application amendments.

Note the use of net proceeds on your application by listing the specific projects or items for which funds will be used. They must fall within your organization’s objects or purposes as outlined in your governing documents. Do not include your mission statement or charitable purpose.

Expired licenses may not be amended or cancelled. If you make changes to your licence application package before you submit it to the licensing authority, each change must be initialed, on each document, by the licence application signers and other signers of that document. Submit changes to your licence application package in writing on your organization’s letterhead, signed by the licence application signers; include supporting documents that are affected.

Step 4: Paying your Licence Fee

The licence fee for electronic raffle licences is one per cent of the total prize board.

All payments must be made online through iAGCO by Interac (Visa, MasterCard, Visa Debit or MasterCard Debit). Payments of $30,000 or more must be made by money wire transfer or electronic funds transfer.

Cheques and cash are not accepted.

Step 5: Executing the Raffle

The AGCO has developed a checklist for running a successful electronic raffle as well as the video posted to the top of this page.

The licensee is required to notify the Registrar through iAGCO of any issues encountered during the raffle. For more information, view this video on How to Submit Post-Event and Incident Reports.

AGCO Compliance Officials require access to verify your raffle and review your licence requirements, including:

• Ensuring that your electronic raffle licence is available to the public
• Raffle operators are knowledgeable of the Terms and Conditions (Step 2)
• Electronic raffle system (solution) has been approved by the AGCO
• Your AGCO-approved Rules of Play are made available to all ticket purchasers
• Ticket sales open and close according to the lottery licence
• Any advertising and marketing material meets all AGCO requirements
• Draw results are confirmed
• You are not selling to minors under 18 years of age
• Raffle personnel are knowledgeable of how to direct customers to problem gambling services in Ontario at ConnexOntario

After your raffle

Step 6: Raffle Wrap-up

Once the raffle is complete, the licensee is required to submit the following reports through the regulatory submissions and notifications function in iAGCO:
1. Post-event reporting
2. Notifications

For more information, view the Regulatory Submissions video.

The following documents must accompany the financial report:

• Copies of all deposit slips related to the event
• A list of winners
• Report of any compliance issues using the post event compliance report.

Please note:

• The financial report must be filled within 30-days of the date of the last draw. The licensing authority may request additional documents including receipts for expenses incurred.
• The licensee must indicate any prizes which have been donated on the financial report. Do not deduct the value of the donated prizes from the gross receipts.
• Where requested, the licensee must provide an audited financial statement to the licensing authority within 120 days of the request, or such other time limit as may be imposed by the licensing authority.
• Report the use of net proceeds to the AGCO.
• Ensure all proceeds go into the lottery trust account.

Canada is known for its tolerant attitude to many issues, including in the gambling business. Casinos in Canada have been legalized since 1999. Around this time, the government issued legislation and created the Kahnawake Gaming Commission, as well as gambling commissions in the provinces.

Gambling Laws in Canada

Gambling in Canada is controlled by Articles 204, 206, and 207 of the Criminal Code. These are the fundamental provisions based on which other, more detailed bills are created at the local provincial level.

• Article 204 defines the rules for the regulation of horse racing and sweepstakes on them;
• Article 206 defines the list of prohibited gambling and actions;
• Article 207 defines the list of permitted gambling and actions.

Due to this situation, each province can create its lotteries and manage to gamble.

Raffle Laws Canada Vs

The regulation of legal gambling depends on the provinces. There are 13 states in the country, and each of them has its specifics of legislation and gambling.

Features of the gambling business in the provinces of Canada

Since the legislative provisions of the provinces vary, the gambling business itself is characterized in different ways. You can play in some provinces from the age of 18, in others from 19. Somewhere only lotteries are allowed, and somewhere full-fledged casinos, bets, and races.

Online gambling industry development

Online gambling was considered illegal and was not regulated in any of the provinces of Canada until 2009. However, this did not stop Canadians from gambling on offshore sites, which still retain a high level of popularity. Since the legalization of online gambling Canada legal has grown rapidly and significantly.

The first province to open an official online casino for its residents was British Columbia. So, in July 2010, she created the British Columbia Lottery Corporation (BCLC), which launched the first gambling site – PlayNow. This institution follows all Canada online gambling laws. Today it is the only legal online gambling platform in British Columbia.

Later that year, Quebec opened its online gambling platform based on the BCLC model. In 2013, the Manitoba authorities launched an online gambling platform to attract the $ 37 million that players spend annually on unregulated gambling in the province.

According to the Canadian Gambling Digest, gambling is common throughout the country, and nearly 80 percent of adult Canadians take part in some kind of gambling at least once a year. In Quebec, the figure is down to around 66 percent, and in Ontario, Canada’s most populous province, it reaches nearly 83 percent. In Nova Scotia, the figure peaks at 87 percent. According to the same report, the average percentage of troubled players is 0.9 percent.

The province with the most gambling is Quebec. There are 10,448 gambling establishments there: from lottery points to full-fledged casinos. Ontario is in second place – there are 9,992 gambling establishments in the province. British Columbia is in third place with 3818 gambling sites.

The most famous and largest establishments in Canada are Casino Niagara and the Niagara Fallsview Casino Resort. They are located next to the very Niagara Falls in Ontario. Casinos offer their guests thousands of slot machines and hundreds of tables with card games.

The Canadian gambling market is booming. In Canada, there are a large number of people who participate in gambling and generate income from the gaming sector. The revenue and popularity of online gambling have been growing since the advent of the sector. The provincial governments adhere to the following policy: if you cannot compete with them, join them and try to keep up with development. British Columbia, Quebec, and Manitoba have launched their platforms to gain their market share – in their opinion, this is better than trying to regulate an industry that is difficult to control. The easy, fast, and popular licensing path KGC helps carriers enter the Canadian market without any problems. Thousands of online operators, especially offshore, are already enjoying success in the Canadian market.